[investment points]
The company ploughs the electronics industry, based on core technologies such as micro-nano hot pressing, precision laser welding, high-speed stamping, etc., and its main products include light guide structures and components, precision key switch structures and components, etc. From functional mobile phones in the 2G era to a hundred flowers blooming in 5G and the Internet of things, the company's products continue to upgrade with the development of the downstream communications industry and the continuous iteration of consumer electronic products, and successfully break through overseas technical barriers in products such as waterproof switches to achieve domestic substitution.
Recently, the company has disclosed the announcement of Xin Weixing, which intends to acquire the main connector business, as well as investment in expanding production of CCS and FPC modules. Xin Weixing has achieved mass production and supply of connector products and accumulated a wide range of customers in the fields of consumer electronics and automotive electronics, forming a good synergy with the company's main business. With the advantages of performance and cost, CCS module has become the mainstream solution in the fields of new energy vehicle battery and energy storage battery, and will significantly benefit from the rapid growth of the downstream market. In addition, based on years of deep ploughing and accumulation in the field of backlight modules, the company focuses on expanding vehicle MiniLED products. The company will make a positive layout around the downstream new energy, intelligent vehicles, energy storage and other fields, and will cast a new business growth pole.
[investment advice]
It is estimated that the company's revenue from 2022 to 2024 will be RMB 1.6270.642 billion respectively. We consider the increment of the company's performance brought about by the letter of M & A, which will be 4400 yuan and 48 million yuan respectively in 2023-2024. It is estimated that the company's net profit in 2022-2024 will be 1.60exp 289x412 million, and the corresponding EPS will be 1.06pm 1.91um 2.72 yuan per share, respectively, and the corresponding PE before the corresponding period will be 32-17-12 times respectively. We believe that the company deeply ploughs the consumer electronics industry chain, based on the accumulation of relevant technology and plans to actively expand the field of automotive electronics through mergers and acquisitions connectors, the product technology layout is clear, to help the company take off again. We comprehensively refer to the industry-related comparable companies with consumer electronics expansion automotive electronics logic, give the company 25 times PE in 2023, give the 12-month target price 46.30 yuan, and upgrade to the "buy" rating.
[risk Tip]
There is uncertainty in the development of corporate mergers and acquisitions.
The progress of the company's investment in expanding CCS and FPC modules is lower than expected.
The progress of MiniLED business is lower than expected.
Downstream demand for consumer electronics is much lower than expected
Exchange rate fluctuates violently
