Based on the electronics industry for more than 20 years, the largest local comprehensive electronic components trading service platform. Shenzhen Huaqiang was founded in 1994 and listed on the Shenzhen Stock Exchange in 1997. since its inception, it has cultivated the electronics industry and created the largest local comprehensive electronic components trading service platform, including: Huaqiang Semiconductor Group is responsible for the authorized distribution of electronic components; Huaqiang Electronics Network Group is responsible for the innovative business, electronic components industry Internet platform, engaged in long-tail demand spot procurement services and information services for electronic components. Huaqiang Electronics World's electronic components entity professional market business.
The demand of the industry remains booming, and the distribution business is expected to benefit deeply from the industry dividend. With the evolution cycle of communication and information technology, new applications emerge, and the overall demand for electronic components shows a trend of continuous growth.
Since 2015, the company's annual CAGR of distribution business has reached 84.61%, growing into a leading distributor of electronic components in the industry. In the future, based on high-quality authorized resources, development experience and capital strength, the company is expected to deeply enjoy the industry growth dividend.
With the rapid growth of industrial Internet innovation business, data capacity has built up the advantages of the platform. There is a long-tail spot purchasing demand of hundreds of billions of levels in the electronic components industry. taking the long-tail spot procurement as the starting point, Huaqiang Electronic Network Group innovates to build an Internet platform for the electronic components industry, 20 years of industrial chain hard work and core data accumulation, efficient service industry long tail demand. In 2021, Q1 Huaqiang Electronic Network Group's revenue increased by more than 190% year-on-year, and home net profit increased by more than 500% compared with the same period last year. The feasibility and growth of the business model have been further verified, and the accelerated integration of group resources in the future will further strengthen the advantages of the platform.
Investment suggestion: we predict that the company's main business income from 2021 to 2023 will be 199.71, 237.45 and 27.299 billion yuan, and the return net profit will be 8.34,10.61 and 1.293 billion yuan, corresponding to 19, 15 and 12 times of PE. Using the segment valuation method, the total target market value of the company is 24.7 billion yuan, giving a "buy" rating for the first time.
Risk tips: the demand of the electronic components industry is lower than expected; the Internet business development of the electronic components industry is not as expected and the risk of IPO listing failure.