Core viewpoints
Persist in ploughing the main business & independent innovation, actively cooperate with well-known e-commerce companies to promote sales growth Konka Group after the acquisition of Xinfei, home appliances business section completely covers the first four categories of home appliances: televisions, air conditioners, refrigerators, washing machines. The company's home appliance marketing scope throughout the Asia-Pacific, the Middle East, Central and South America and Eastern Europe and other regional markets. The company has 239 patents in the field of white electricity, including 49 inventions, 127 utility models and 63 designs. The company has signed the 2023 annual cooperation framework with JD.com home appliances and SUNING, with a cumulative cooperation amount of more than 2 billion yuan, laying a solid foundation for home appliance sales in the coming year.
MLED market demand is about to burst, and the company is the first to break through the technical bottleneck in this field. According to Arizton data, the global Mini LED market will be $150 million in 2021, and it is predicted that the market size will grow to $2.32 billion in 2024. Konka Group ranks fourth in the world in terms of Micro LED patent acceptance, while LED chips, epitaxial, massive transfer, display technology and other subdivisions are also among the best.
Relying on technology leadership can not only help the company quickly occupy MLED market share and obtain excess returns in the blue ocean market, but also Micro LED technology can be applied to the company's existing color TV business, so as to improve the market competitiveness of the company's color TV products.
Konka lays out the new energy plate and creates the second growth curve of the cause. In recent years, the installed capacity of distributed photovoltaic power generation in China has grown geometrically. Since 2021, the company has made use of its own brand advantages to carry out comprehensive strategic cooperation with Wemai shares and Shenggao Energy and set up a joint venture company to actively increase the photovoltaic business sector, marking the company's smooth entry into the field of new energy industry and further enriching the industrial layout. in the future, with the mass production of the joint venture company, it is expected to enhance the company's sustainable operation and profitability. When the new energy project is fully landed, it is expected to increase annual revenue by more than 5 billion yuan.
Profit forecast and valuation
It is estimated that the earnings per share (EPS) of Shenkangjia A2022-2024 will be 0.36 yuan, 0.44 yuan and 0.59 yuan respectively, and the net profit of homing will maintain a compound growth rate of 16.01% in the next three years. Under the absolute valuation model, the corresponding reasonable intrinsic value per share is 5.68 yuan. Under the relative valuation model: the average PE of the industry in 2022 is 14.68 times; considering the size and future performance growth of the company, the company is given 14.68-17.1 times PE in 2022, corresponding to a reasonable valuation range of 5.28-6.16 yuan per share.
Investment risk hint
Raw material prices fluctuate, exchange rate fluctuates, and the construction progress of new projects is not as expected.