The performance increased steadily, and the contribution of new business continued to increase: the company's revenue in the past 22 years was 8.6 billion yuan, an increase of 13% over the same period last year; its net profit was 650 million yuan, an increase of 28% over the same period last year, deducting 500 million yuan from non-parent net profit, an increase of 23% over the same period last year. Due to the relatively weak prosperity of the industry, 23Q1 achieved revenue of 1.7 billion yuan, down 9% from the same period last year; net profit from home was 150 million yuan, up 20% from the same period last year, deducting 110 million yuan from non-home net profit, up 2% from the same period last year. The sustained growth of the company is mainly due to the good cooperation between the company and customers, the orderly development of various businesses as planned, the soundness of mature business, and the initial results of new business. Among them, high-precision connectors, LCP modules / millimeter wave antennas, UWB, automotive interconnection products, passive components and other new services continue to develop rapidly, while the gross profit margin is also gradually increased. The company's new business accounts for nearly 20% of revenue, which is expected to continue to increase in the future. Over the past 22 years, the company has achieved outstanding results in production efficiency and cost control, with an annual gross profit margin of 21.8%, a year-on-year increase of 2.6%, a year-on-year increase of 20.5% and an increase of 1.5pct.
The traditional RF main business remains competitive: the company continues to deepen the integrated R & D production capacity of materials-> parts-> modules, and maintains the leading technology and technology in the traditional main business such as antenna, wireless charging and EMI/EMC. It is not only recognized by customers in upstream materials, but also maintains a stable share among many major customers all over the world. At the same time, we will actively expand IoT areas such as smart home, providing customers with everything from hardware parts to
The one-stop solution of product software is expected to maintain steady development in the future. In terms of antenna business, the company is recognized by major North American customers, including major technology customers around the world, and is expanding the coverage of antennas in the field of Internet of things / smart home applications. In the field of wireless charging, in addition to the receiving end, the company has cut into the mobile phone transmitter, watch transmitter and other transmitter products, covering the product system is becoming more and more comprehensive.
The new business expansion is smooth, and the long-term development prospect is broad: in recent years, the company continues to increase R & D investment to broaden the business boundary and create a "universal radio frequency" business layout, and the new business gradually meets the period of rapid growth. High-precision connectors rely on superior technology to achieve rapid scale expansion, and have made progress in the fields of servers, automobiles, commercial satellite communications, etc.; LCP antennas and modules continue to strengthen the ability of vertical integration to cut into the supply chain of international major customers; passive components build an international R & D system, and strive to promote domestic substitution of high-end components. Automotive interconnection products (wireless charging, 5G antenna, UWB, etc.) strengthen customer expansion, cultivate incremental new markets, and have won the supply qualification of many mainframe factories and Tier1 at home and abroad. The company builds the potential of sustainable development through the vertical penetration of the industrial chain and the horizontal expansion of the product line.
We forecast that the company's 23-25 net return profit will be 86116,1.49 billion yuan respectively (the original forecast for 23-24 years will be 1.24 billion yuan, respectively, mainly considering the reduction of revenue and gross profit margin forecast due to the impact of terminal demand). According to the comparable company's 23-year 28 times PE valuation, the corresponding target price is 24.92 yuan, maintaining the buy rating.
Risk hint
The development of the RF industry is not up to expectations; the development of the company's new business is not as expected; the assumptions are not as good as expected.