Aohai Technology is the leader in mobile phone chargers. For the first time, it was given a “buy” rating. Aohai Technology is the global leader in mobile phone chargers, mainly mobile phone chargers, new energy electronic control, photovoltaic inverters, etc. Among them, the main customers in the mobile phone charger business include well-known mobile phone brands such as Xiaomi, Huawei, Honor, Vivo, OPPO, Voice, Nokia, and MOTO. We believe that as the mobile phone market gradually picks up and the penetration rate of customer fast charging phones gradually increases, the company's charger business is expected to see a sharp rise in volume and price. We predict that in 2023-2025, the company's net profit to mother will be 5.05/7.04/897 million yuan, corresponding EPS is 1.83/2.55/3.25 yuan, and the current stock price is 17.0/12.2/9.6 times PE. The first coverage gives a “buy” rating.

The increase in the penetration rate of fast charging phones is driving the growth of mobile phone chargers. The global market is expected to reach 55.8 billion yuan in the total sales volume of fast charging phones in 2029, the penetration rate of fast charging phones will increase, and the average fast charging power of smartphones of major brands will increase. We believe that the increase in the penetration rate of fast charging phones is driving the development of mobile phone chargers towards fast charging and high power, driving the growth of the mobile phone charger market. QYResearch estimates that the global mobile phone charger market is expected to reach 55.8 billion yuan in 2029, and the CAGR will be 3.2% from 2022 to 2029.

The acquisition of Zhixin Control lays out the new energy electronic control business, and mass production of mass production and research projects drove revenue growth. In 2021, the company acquired Zhixin Control. It specializes in NEV vehicle controllers (VCU), battery management systems (BMS), motor controllers (MCU), etc., and has entered the supply chain of state-owned automobile brands such as Dongfeng, Hongqi, SAIC Motor, etc., with many mass production & ongoing projects. We believe that revenue is expected to continue to grow as mass production and ongoing projects continue to be mass-produced.

All segments of the digital energy business are developing at an accelerated pace. It is expected to build a new revenue curve. The company will enter the data power supply field in 2021. It is mainly engaged in server power supply and other products. It is expected to produce 450,000 new sets of server power products per year after delivery; the acquisition of the Feiyuke layout charging pile field in 2022 has been shortlisted for the State Grid tender to provide customers with solutions such as charging piles. We believe that as server power production capacity is released and charging piles continue to be released, it is expected to create a new revenue curve for the company.

Risk warning: downstream demand falls short of expectations; promotion of new products falls short of expectations; industry competition intensifies.