This report is read as follows:
The number of new models of domestic brand mobile phones on the market is high compared with the same period last year, and the company's consumer electronics business has benefited; it has continuously improved the consumer electronics product line and launched the ultra-small single-channel flash driver chip ET93010A.
Main points of investment:
Maintain the "overweight" rating and maintain the target price of 60 yuan. Maintain the company's 2023-2025 EPS forecast of 1.5x2.01max 2.69RMB. Considering that the company's consumer electronics product line continues to improve and will benefit from the recovery of domestic mobile phones, it will be given 40 times PE in 2023, maintaining the target price and maintaining the "overweight" rating.
The listing of new models of domestic brand mobile phones has increased sharply compared with the same period last year, and the company's consumer electronics business has benefited. According to the China Institute of Information and Communication, 16.237 million domestic brand mobile phones were shipped in July 2023, accounting for 87.5% of mobile phone shipments in the same period. 35 new models of mobile phones were listed in China, an increase of 59.1% over the same period last year, of which 18 models of 5G phones were up 100.0% over the same period last year. Accounted for 51.4% of the number of new mobile phones on the market in the same period. The continuous launch of domestic brand new phones will catalyze the recovery of the industry and benefit the company's consumer electronics business.
Continue to improve the consumer electronics product line, the launch of ultra-small single-channel flash driver chip ET93010A. According to the company's official Wechat account, the company launched a high-efficiency, ultra-compact flash driver chip ET93010A for mobile phone photography. The product has an independent and adjustable 1.5A LED current source, uses an efficient synchronous boost topology, and the operating frequency can be configured to 2MHz and 4MHz. The current can be controlled in the range of 11mA to 1.5A in flash mode, or from 1mA to 375mA in flashlight mode. With minimal 1.5mA dimming step, delicate soft dimming can be achieved, with UVLO, output overvoltage, output short circuit, overtemperature protection and other functions.
Catalyst. The recovery of domestic brand mobile phones is accelerated; the company's product matrix continues to expand.
Risk hint. The recovery of domestic brand mobile phones is not as expected; the introduction of new products is not as expected.