Company Overview: Touch display+power transmission are the two main businesses that jointly drive growth engine 1) Business structure: It mainly includes the two major businesses of power transmission and touch display, involving various industries such as consumer electronics and automobile transmission. Among them, the touch display business revenue share declined, and the power transmission business revenue share grew steadily; 2) Equity structure: relatively concentrated, the actual controllers Zhu's father and son held a total of 30.64% of the shares; 3) Development history: The acquisition of Taiwan has formed a dual main business; 4) Financial situation: Revenue is stable, and Touch Display is in the Valley cycle; bottom.
Power transmission: the traditional business is steady, and the new energy business ushered in volume 1) Building high-quality transmissions in the tram era: ① The company's transmission product advantages: covering all fields of traditional fuel vehicles, new energy vehicles, and commercial vehicles; ② The main components required for assembly are independently developed and produced by the company; ③ Continuously increasing investment in cooperative R&D with customers; 2) The company is a leader in the domestic balance shaft industry: After 20 years of independent research and development of the dual balance shaft system for automobile engines, it has become the first domestic enterprise to independently design, develop and mass-produce double balance shaft systems for automobile engines; 3) Continued investment in the layout of new energy electric drive components:
High investment in R&D and production capacity accelerates the layout of new energy electric drive components.
Touch display: short-term drag, wait for flowers to bloom
1) Consumer electronics performance is under pressure, product structure optimization: 2023 related revenue was -24.25% year-on-year, mainly due to a decline in consumer demand in the touch display business market, while the proportion of assemblies in the product structure continued to rise; 2) Large-sized industrial touch controls became a new driving direction:
We have mastered the processing technology of medium and large touch screens, industry-leading GF technology, and continue to invest in related R&D; 3) Vehicle touch has contributed new volume: the consumption upgrade of new energy vehicles combined with the trend of intelligent electrification has opened up a new market space for in-vehicle touch, making “large size, light weight, and integrated touch display” a new direction of development.
Growth logic: power transmission has increased steadily and slightly, and touch display is still waiting to blossom 1) Traditional power transmission business is steadily increasing slightly: fuel vehicles are generally stable and continue to be released; 2) New energy electric drive components have become a major short-term increase: early fund-raising projects have entered the crawling stage and are about to usher in an inflection point; 3) The touch display business is waiting to blossom: the proportion of assemblies continues to rise, waiting for the consumer electronics industry to rebound in performance after recovery.
Profit forecasting
The company's revenue for 24-26 is estimated to be 33.60/41.94-798 billion yuan, with year-on-year growth rates of +19.67%/+24.73%/+14.48% respectively; net profit to mother was 1.50/1.97/253 million yuan, reversing the year-on-year growth rate of +31.20%/+27.94%, respectively. Considering that the company's touch display business has fluctuated in the past two years, it was covered for the first time, and a “gain” rating was given.
Risk warning: risk of macroeconomic fluctuations; risk of fluctuations in raw material prices; risk of exchange rate fluctuations; project progress falling short of expectations; public data used in research reports may be delayed or not updated in a timely manner.