Key points of investment
The Q1 2023 report revealed that Q1 of 2023 had revenue of 24.999 billion yuan (YOY +3.96%), net profit of 175 million yuan (YOY -12.87%), and net profit of the non-return mother of 167 million yuan (YOY -15.53%).
Q1 Global smartphone market shipments declined again, and the performance of core strategic partners was affected:
Q1 of 2023 had revenue of 24.999 billion yuan (YOY +3.96%), net profit of 175 million yuan (YOY -12.87%); after deducting net profit of non-return mother was 167 million yuan (YOY -15.53%). The consumer electronics market was sluggish in Q23. According to the latest data from Canaly, the global smartphone market experienced a fifth consecutive quarterly decline in Q1 2023, and fell 12% year-on-year in Q1 2023. The company, as a strategic partner of leading brands such as Apple, Honor, and Samsung, was greatly affected by this. The report also showed that Samsung was the only mobile phone brand that achieved quarter-on-quarter growth and returned to first place with a global market share of 22%. The company has always been an important partner in Samsung's retail business, and is committed to helping Samsung establish a high-end market position, and its share in the high-end mobile phone market continues to rise.
The wholly-owned subsidiary Aishida (Hong Kong) was increased to actively lay out overseas sales and warehousing service networks:
ESD (Hong Kong) Limited was registered in 2013 and is a wholly-owned subsidiary of the company. Currently, the company's overseas business is developing smoothly, the scale of business is growing rapidly, and capital requirements are rapidly increasing. As a result, the company will increase its capital by no more than 40,000 yuan in the form of overseas investment. The capital increase has been filed, the funds have been transferred in full, and ASTEC (Hong Kong) completed the commercial and commercial changes relating to the registered capital on March 30, 2023.
Profit forecasting and valuation
As a leading digital distribution and digital retail service provider in China, ASD has significant competitive advantages in terms of sales network layout, product operation development, organizational efficiency improvement, and digital renewal support, which is the core reason we continue to be optimistic about the company. Affected by macroeconomic factors, the consumer electronics industry's global smartphone market shipments declined again. Combined with the company's overseas deployment and cost investment, the company's profit forecast was lowered. The company's revenue for 23/24/25 is expected to be 1,042.39/1,206.54/1,34,835 billion yuan, up 17.3%/15.9%/11.7% year-on-year, and net profit of 9.78/11.63/1301 billion yuan, an increase of 33.9%/18.9%/11.9% over the previous year. The price-earnings ratio corresponding to current market capitalization is 10.7X/9.0X, respectively /8.1X, maintaining the “buy” rating.
Risk warning
New product sales and expansion fell short of expectations; mobile phone sales fell short of expectations; policy changes in the new energy industry; industry competition intensified.