Key investment points

AI terminal equipment and communication intelligent manufacturing platform. The AI terminal equipment and communication industry refers to the R&D, production, sales and related services of AI terminal equipment and communication equipment. According to terminal product applications, it can be divided into AI terminal equipment sector and communication sector. The AI terminal equipment segment covers all kinds of artificial intelligence (AI) terminal electronic products, including consumer electronic products such as smartphones, laptops, tablets, smart wearables, etc., enterprise-grade commercial electronic devices such as data center equipment, large-scale servers, industrial computers, power supplies, etc., and innovative electronic products such as extended reality (XR). The communications sector mainly involves wireless communication equipment, including base station equipment and signal processing components. As the world's leading core supplier in the field of AI terminal hardware, the company provides one-stop intelligent manufacturing services and solutions for the industrial chain of precision functional parts, structural parts, modules, etc. required for AI terminal equipment on a global scale. The company has technology for processes such as die-cutting, stamping, CNC and injection molding. Downstream applications of electronics-related products cover the fields of AI terminal devices such as smartphones, laptops, wearables, and XR. The company actively builds an AI terminal hardware manufacturing platform, accelerates exploration in the field of artificial intelligence hardware, continues to pay attention to the innovation and upgrading of cutting-edge robot-related technology, and explores specific applications and collaborations in its own business fields around hardware products including XR and robots. At the same time, the company also applies the research and development of artificial intelligence and robots to overall industrial solutions for automated production. Combining various types of self-developed and multi-functional CNC and automation equipment, the company is committed to building an intelligent production workshop with advanced technology and equipment and leading domestic technology to build an efficient modern smart factory.

Smartphones, humanoid robots are fully covered. In terms of smartphones, the company follows the main development trend of weight reduction and performance optimization of high-end folding screen phones, and is actively experimenting with the use of carbon fiber as a new material for the design, development and production of folding screen structural parts, optimizing hinges and screen structures, extending the service life, and reducing the impact of creases and overall body weight. As a key part of the screen support plate, the company's carbon fiber structural parts have high strength, low density, good modulus, and excellent conductivity and heat dissipation. They gradually replace stainless steel materials into the folding mobile phone industry, and achieve 0.15 to 0.2 mm thick products through hot pressing of thermosetting carbon fiber materials. Related folding screens and other high-end mobile phone models from leading customers in the industry have adopted the company's carbon fiber structural parts and achieved mass production and shipment. In terms of humanoid robots, humanoid robots are downstream of the company's product applications. The company attaches importance to developing humanoid robot market opportunities. Shenzhen Lingpeng Intelligent Technology Co., Ltd., a wholly-owned subsidiary of the company, has signed a memorandum of understanding with Hanson Robotics Limited. The two sides will cooperate on design optimization and upgrading and mass production testing of humanoid robots. The company has core technical capabilities in robot design, manufacture and application, as well as system integration service capabilities such as automation solution design. Industrial control robots, control systems and related technologies developed by the company are used in parallel robots, planar articulated robots, six-axis industrial robots, miniature six-axis industrial robots, palletizing robots, bionic two-arm robots, ultra-high precision double workbenches, etc. The intelligent industrial controller developed by the company has integrated drive control, is highly integrated, has graphical programming, is widely applicable, and can drive all types of industrial robots. The CSV reducer developed by the company is an evolved type of RV reducer. It is further developed on the basis of traditional cycloid reducers. It has the characteristics of compact structure, high rigidity, high accuracy, low noise, large speed ratio range, light size, small size, and high efficiency. Shenzhen Lingpeng Intelligent Technology Co., Ltd. can provide design, engineering and manufacturing solutions for industrial robots and robot manufacturing equipment. The mass production of products related to the company's robot business depends on downstream customer needs and industry development, and related work is currently progressing in an orderly manner.

Active layout of communications and automotive businesses. In terms of communications business, the company relies on the strong R&D capabilities of the Communications R&D Center and the technology and experience accumulated over a long period of time in the precision functional parts and structural parts business to continue research and development in the field of new communications to provide core components of communication equipment to important customers. The company's products have covered 5G base station devices, components and subsystems such as base station filters, duplexers, backbone return duplexers, adjustable duplexers, polarized orthogonal converters (OMT), and outdoor integrated split circuit (OCU). With leading precision manufacturing, R&D design and business development capabilities, the company has rapidly emerged in the power battery structural parts segment, and has become an important supplier for major new energy customers in North America with high-standard products. The electronic and electrical components in the car are also equipped with wireless fast charging, and self-developed self-made fast charging coils (Coils) are designed to better adapt to the brand's charging protocol and meet simultaneous charging between different devices. Based on the company's accumulated precision manufacturing, R&D and design capabilities in consumer electronics, it has established a unique competitive advantage.

Investment recommendations:

We expect the company's 2024-2026 net profit of 2.24/3.01/4.01 billion yuan, covering the first “buy” rating.

Risk warning:

The competitive landscape of the industry intensifies risks; raw material prices fluctuate; downstream demand falls short of expectations; product development falls short of expectations.