AI 算力需求持续释放，持续开拓新客户。AI 服务器出货量快速增长，新技术持续迭代，如GB200 NVL72 互联模式通过NV Switch 实现，GPU 与NV Switch 采用铜互联形式，内部使用的电缆长度累计接近2 英里，共有5000 条独立铜缆。公司产品线丰富，是一体化解决方案供应商，并收购汇聚科技完善相关布局，持续开拓新客户。Investment highlights:
A leader in the consumer electronics industry, the business landscape continues to expand. Lixun Precision is a leading company in the consumer electronics industry. The company started with connectors. Currently, its products cover three major fields of consumer electronics, automotive electronics, and communication electronics. The company has had many acquisitions in its history, continuously improving product line coverage, continuously expanding its business layout, and continuing vertical integration to form a “component-module-system” layout.
Apple Intelligence is officially launched, and features continue to be iterated, cooperating with major North American customers to embrace the AI wave. Apple is a global consumer electronics giant. We believe that Apple is a pioneer in product definition. Its mobile phones, computers, TWS, etc. all define the nature of products and lead the development of the consumer electronics industry. The company has an in-depth layout of sound, photoelectric, thermal and magnetic technology, and is expected to continue to receive new material models and product assembly orders. At the same time, Apple Intelligence is officially launched, and AI functions continue to be iterated, which is expected to cause a wave of switching. The company is a core supplier to major North American customers and cooperates closely on products such as mobile phones, watches, headsets, etc., and the share of some categories is expected to continue to increase, and the performance is expected to benefit significantly.
Demand for AI computing power continues to be released, and new customers continue to be developed. AI server shipments are growing rapidly, and new technologies continue to be iterated. For example, the GB200 NVL72 interconnection model is implemented through NV Switch, and the GPU and NV Switch use copper interconnect. The total length of cables used internally is close to 2 miles, with a total of 5,000 independent copper cables. The company has a rich product line, is an integrated solution provider, and acquires Huiju Technology to improve the relevant layout and continue to develop new customers.
The automotive business enjoyed the dividends of racetracks and domestic alternatives, and epitaxial mergers and acquisitions helped the company build a Tier 1 platform. There is a clear trend in the four modernization of automobiles, and the rise of domestic NEV companies is expected to drive up the company's share. 1) The electrification trend is driving demand and ASP growth. The company has a complete line of wiring harnesses and connectors, benefiting from domestic replacement, and its share is expected to increase; 2) The trend of automotive intelligence boosts the rapid growth of the smart driving and smart cockpit market. As a traditional consumer electronics leader, the company's relevant technology is mature; 3) The company's controlling shareholder will participate in the Chery Group, and the company is expected to complete all procedures of mergers and acquisitions during the Q1-Q2 period of 2025 to strengthen its technical strength and enrich its customer base to help the company develop its Tier 1 automotive business.
Profit forecast and investment rating: The company is a leading consumer electronics company and works closely with major North American customers. It is expected that it will continue to receive orders for new materials and system assembly services, while actively expanding the automotive and communications business. We expect the company's 2024-2026 revenue to be 254.773, 326.521, and 390.15 billion yuan, respectively, +10%, +28%, and +19% year-on-year, and net profit to mother of 13.414, 17.002, and 21.003 billion yuan, respectively, +22%, +27%, and +24%, corresponding PE is 21, 16, and 13 times, respectively, maintaining the “buy” rating.
Risk warning: Risk of macroeconomic fluctuations, fluctuations in the international trade situation, consumer electronics demand falling short of expectations, new products from major customers falling short of expectations, new business expansion falling short of expectations, intensifying industry competition, risk of exchange rate fluctuations, AI mobile phone expansion falling short of expectations.
