This report is read as follows:
Under the pull of off-grid lighting and automotive electronics business, Q3 performance maintained high growth, performance in line with expectations. Off-grid lighting continues to increase, and the market is gradually expanding from Africa to Europe. Automotive electronics business continues to maintain high growth.
Main points of investment:
Maintain profit forecast, target price and overweight rating. From 2022 to 2024, the net profit of the maintenance company is estimated to be 2.06, 292, 395 million yuan, and the corresponding EPS is 2.15, 3.04, 4.12. The company's traditional controller demand is expected to recover, automotive electronic controllers and off-grid lighting products high growth, compared with the industry valuation, maintain the target price of 86 yuan and increase the rating unchanged.
Under the pull of off-grid lighting and automotive electronics business, Q3 performance maintained high growth, performance in line with expectations. Revenue in the third quarter increased by 57.22% compared with the same period last year, and net profit increased by 61.56% over the same period last year, continuing the high growth trend in the second quarter.
Off-grid lighting continues to increase, and the market is gradually expanding from Africa to Europe. The company mainly provides customers with off-grid solar lighting systems, and the downstream customers' business has expanded rapidly this year. With the continuous expansion of customers in the African market, in addition to the upgrading of the original market products, the demand for products in the new market is also on the rise. The future increment of the off-grid lighting market will increase significantly. As customers continue to develop in the African market, the demand for this kind of products is expected to maintain a certain growth trend. The company will continue to meet the needs of customers and ensure the timely supply of products. At the same time, the company set up a holding subsidiary Dongguan Langte New Energy in July this year, which mainly makes energy storage products, and the products sold to Europe are mainly kilowatt energy storage packages with power management.
Automotive electronics business accounted for more than 10% in the first half of the year, continuing to maintain high growth. The company has been in the field of automotive electronic controller for many years, with a wide range of products, covering many key areas of automotive electronics, and the order volume continues to increase in the first half of the year. In the future, the company will continue to seize market opportunities and strengthen in-depth cooperation with key customers. continue to develop new customers and new products.
Risk hints: the risk of rising raw material prices and chip shortage, the risk of relatively high export income, the risk of macroeconomic fluctuations at home and abroad, and the risk of automobile and new energy business expansion or falling short of expectations.
