公司已为华为、荣耀、小米等头部品牌商提供智能手机电子制造服务多年，随着全球消费电子景气度复苏，人工智能技术在智能手机的加速渗透，公司等头部EMS 厂商有望深度受益。公司于2018 年开始进军海外市场，先后于印度、越南及孟加拉设立生产基地，海外业务实现了飞跃增长，2020-2023 年境外收入CAGR 达114.36%。考虑印度及东南亚智能手机市场仍处于高速发展阶段，随着公司海外产能的扩建，公司海外业务增长可期。Deeply involved in the EMS industry for many years, diversified business layouts have achieved rapid growth in performance
The company mainly provides customers with complete electronic manufacturing services (EMS), including PCBA and finished product assembly. Based on consumer electronics, the company has expanded automotive electronics, new energy and network communication businesses, and created diversified business fields. The four major business segments have supported the rapid growth of the company's performance. After years of intensive cultivation and development, the company has become one of the top 20 global EMS suppliers. In the future, the company is expected to give full play to its scale effect and synergy advantages to achieve rapid growth.
Benefiting from the recovery in the consumer electronics boom, overseas business growth can be expected
The company has been providing smartphone electronics manufacturing services for leading brands such as Huawei, Honor, and Xiaomi for many years. With the recovery of the global consumer electronics boom and the accelerated penetration of artificial intelligence technology into smartphones, the company and other leading EMS manufacturers are expected to benefit deeply. The company began entering overseas markets in 2018, and has successively set up production bases in India, Vietnam and Bangladesh. Overseas business achieved rapid growth. Overseas revenue CAGR reached 114.36% in 2020-2023. Considering that the smartphone market in India and Southeast Asia is still developing rapidly, the company's overseas business can be expected to grow as the company's overseas production capacity expands.
The automotive electronics business has broad prospects and is profoundly benefiting from the electrification and intelligence of automobiles
The company has been in the automotive electronics field for more than 20 years and has successfully entered the supply chain of well-known auto parts suppliers Valeo, Continental, and Denso to provide a full range of automotive electronics manufacturing services for new Chinese car builders represented by Huawei. Under the trend of electrification and intelligence of automobiles, the penetration rate of new energy vehicles continues to increase, and the value of bicycle electronic components is rapidly increasing, and the company's automotive electronics business is expected to usher in rapid growth.
Investment advice
We expect the company's operating income in 2024-2026 to be 6.84/8.242/9.382 billion yuan, net profit to mother of 0.212/0.244/0.344 billion yuan, EPS 0.28/0.32/0.45 yuan, closing price 33.83 yuan on October 24, 2024, PE 122.31/106.47/75.56 times. Considering the recovery of the downstream consumer electronics boom, the company's automotive electronics business will have high growth, and the first coverage will give the company an “increase” rating .
Risk warning
Downstream demand fell short of expectations, competition in the EMS industry intensified, and capacity expansion fell short of expectations.
