The company issues its 2023 half-yearly report. Automotive electronics business continues to develop at a high speed, and consumer electronics business benefits from the release of Apple Inc Vision Pro, which has a lot of room for growth in the future. Maintain the overweight rating.
Support the main points of rating
The results in the second quarter are eye-catching compared with the month-on-month growth. 2023H1 has revenue of 504 million yuan, year-on-year + 7.4%, net profit of 73 million yuan, year-on-year + 32.0%, non-return net profit of 48 million yuan, year-on-year + 20.1%, gross profit of 28.0%, year-on-year + 0.5 pct. 2023Q2's single-quarter revenue is 282 million yuan, year-on-year + 11.0% / month-on-month + 26.8%; return-to-home net profit 44 million yuan, year-on-year + 37.3% / month-on-month + 57.4%; deduction of non-return net profit 31 million yuan, year-on-year + 62.7% / month-on-month + 71.6%; gross profit 28.8%, year-on-year + 0.5pcts/ + 1.7 pcts.
Automotive electronics has become a driver of performance growth, with 2023H1 accounting for more than half of revenue. In the first half of the year, revenue in the field of automotive electronics was 255 million yuan, + 60.5% compared with the same period last year; revenue in smart home sector was 101 million yuan,-19.1%; revenue in communications sector was 73 million yuan,-32.1%; revenue in smart medical field was 26 million yuan,-9.6%; revenue in other areas was 49 million yuan, year-on-year-0.74%. The company actively seizes the opportunity of the rapid development of independent automotive brands and the continuous improvement of the level of automotive electronics, and promotes products with high technical requirements, such as central control screen yaw actuators, tail wing lifting actuators, hidden door handles, and so on. 2023H1 automotive business accounts for 51% of revenue, accounting for more than half of the automotive business for the first time since listing.
The layout of East China continues to advance: during the reporting period, the company steadily promoted the construction of Zhaowei Mechanical and Electrical Suzhou Park and set up a subsidiary Suzhou Industry to focus on rolling motor business. The company continues to expand its R & D, production and supply capacity in East China to promote the continuous optimization of the company's capacity distribution.
Apple Inc MR brings room for future growth: during the reporting period, Apple Inc released a new generation of terminal VisionPro for the first time, and according to Weishen XR, Zhaowei Mechatronics supplied IPD electric regulation modules. We believe that as Apple Inc's Vision Pro sales continue to grow, Zhaowei Mechatronics is expected to benefit in the long run.
Valuation
We expect the company to achieve earnings per share of 1.15 yuan / 1.47 yuan / 2.65 yuan from 2023 to 2025, corresponding to a price-to-earnings ratio of 59.9 times / 47.1 times / 26.0times. Maintain the overweight rating.
Main risks faced by rating
Raw material price fluctuation risk; technology research and development is not as expected; downstream demand is not as expected.