Event description
On August 24, the company released its semi-annual report of 2023. During the reporting period, the company achieved a revenue of 243 million yuan, an increase of 9.54% over the same period last year. The net profit returned to its mother was 75 million yuan, an increase of 49.77% over the same period last year, of which non-recurrent profit and loss was 20 million yuan, deducting non-return net profit of 54 million yuan, an increase of 9.89% over the same period last year. In the second quarter alone, the company achieved revenue of 128 million yuan, an increase of 7.28% over the same period last year, and its net profit was 27 million yuan, an increase of 1.49% over the same period last year.
Event comment
The steady growth of the business of the three major sectors, not only the automobile electrification, but also the automobile intelligent connection products are progressing smoothly. During the reporting period, the three main business segments of the company all grew, and the revenue of industrial connectors reached 157 million yuan. Yoy+2.22%, focused on tapping the customer demand in the industrial field, and actively expanded industrial robots and other application scenarios in new products. Connectors for high-precision and high-frequency signal transmission have been mass-produced. The company's car connector business income is 42 million yuan, an increase of 31.8% over the same period last year, and its gross profit margin is 49.03%, which can be used as the core business support for the company's performance growth in recent years. In addition to the medium and low voltage signal products used in the traditional three-electricity system, the company is also actively developing products related to intelligent driving. At present, the subsidiary Wellcome Automobile has completed product development, including intelligent driving front visual perception, body domain control PCB board end connection scheme, type-C connector assembly and high-speed Ethernet connector assembly. The company's high-speed domain control low-voltage high-current connector applied for invention patent. Make up for the gap in China The company's new energy connectors achieved revenue of 40 million yuan, an increase of 23.9% over the same period last year. The company developed connectors for energy storage and charging applications with key customers during the reporting period, and the company can provide photovoltaic energy storage system solutions.
At the industry level, connectors belong to the long slope thick snow industry, the market space is broad. According to Bishop & Associates statistics, from 2015 to 2021, the global connector market increased from US $52.05 billion to US $78 billion. In 2022, the global connector market grew by more than US $6 billion, a year-on-year growth rate of 7.8%. The market is expected to exceed US $90 billion in 2023, which is a typical long slope and thick snow market. In 2021, the global industrial control connector market accounts for about 13%. In the future, industrial developed countries such as the United States and Germany will continue to accelerate the process of industrial automation and intelligence. in addition, developing countries are also undertaking the global industrial redivision of labor, which will promote the growth of industrial connector market demand. The global industrial equipment market will reach 306.67 billion US dollars in 2023, the domestic industrial automation market will be 240.9 billion yuan in 2022, and the domestic market will continue to expand.
As the leader of domestic industrial control connectors, the company will fully benefit from the accelerated process of domestic substitution in the industrial field in the future. in addition, the company actively expands global industrial control customers, has global competitiveness, and continues to increase its share in the field of industrial control connectors. it is expected to achieve long-term and steady growth in the future. In the field of automobile and new energy, the company has good technology accumulation and clamping advantages, and actively embrace the opportunities for the rapid development of the industry, which will become an important driving force for the company's growth in the short term, and the company is also actively storing and arranging automotive high-frequency and high-speed connectors. We are optimistic about the future growth of the company, and expect the company's return net profit from 2023 to 2025 to be 1.68,2.15 and 266 million yuan respectively, maintaining the company's "buy" rating.
Risk hint
1. Prosperity fluctuation of industrial control connector industry
2. Car sales are not as expected.