Established on December 21, 2006, Lansi Technology is a high-tech manufacturer in the global smart device window and exterior protection, structural parts and electronic functional parts industries. The main products cover protective panels, touch modules, biometrics and other exterior structures and functional components made of glass, metal, sapphire, ceramics, plastic, etc. In 2023, the smartphone and computer business revenue was 44.901 billion yuan, accounting for 82.40%; the NEV and smart cockpit business revenue was 4.998 billion yuan, accounting for 9.17%; and the smart headset and smart wearables business revenue was 3.104 billion yuan, accounting for 5.70%.
The business model has high barriers and is intensive in technology, capital and manpower. 1) Heavy assets: Capex remained at 5.4-6.9 billion yuan in 2020-2023, with a fixed asset turnover of 1.30-1.52X in the past 5 years. 2) Manpower intensive: At the end of 2023, the number of employees was 0.1337 million, and labor costs accounted for 24% of operating costs. 3) Technology-intensive: Since its launch in 2015, Lansi Technology has invested 15.2 billion yuan in R&D. At the end of 2023, the number of active patents was 2,231, ranking first in the industry in terms of number of patents.
14 years of intelligent manufacturing, doubling labor efficiency and cost optimization. In 2010, Lansi fully promoted the overall production automation strategy. At the end of 2020, Lansi's intelligent manufacturing development team had exceeded 1,200 people. In 2011-2023, the per capita output value increased from 0.172 million yuan to 0.408 million yuan, an increase of 1.4 times, and the share of labor costs decreased significantly.
Adhere to the big customer strategy and fully benefit from innovation in materials, color, texture, etc. of high-end smartphone components. The iPhone 12 uses a super porcelain crystal panel, and the iPhone 15 Pro series is equipped with a higher-end matte-textured glass back plate. The unit price of Apple back glass is over 1,000 yuan. In 2020, Lansi Technology Epitaxial acquired the industry-leading consumer electronics metal case processing and assembly company to become a technology subsidiary to lay out aluminum alloy structural parts and further strengthen its supporting capabilities for Apple's exterior parts. Since 2020, Apple, Lansi's largest customer, has accounted for 55%-71% of revenue, and the top five customers have accounted for 79%-83% of total revenue.
The whole machine business is gaining prominence. In 2019, Lansi Technology began setting up a smart terminal assembly business, and the new Xiangtan Park was put into operation in 2021, becoming a smartphone assembly supplier such as Xiaomi. Lansi Technology has accumulated system-level product capabilities for smartphones, smart wearables, laptops, tablets, new energy vehicles, and smart cockpit systems.
First coverage, giving a “buy” rating. Lansi Technology's revenue forecast for 2024-2026 is 65.6/74.3/85.1 billion yuan, net profit forecast is 3.6/5.1/6.1 billion yuan, and 2024/25/26 PE is 25/17/15X, respectively. Comparable companies have an average PE of 22X in 2025, corresponding to Lansi Technology's valuation increase of 28%, giving it a “buy” rating.
Risk warning: 1. Risk of exchange rate fluctuations, 2. Risk of customer concentration 3. Competition increases risk