This report is read as follows:
As the leader of SiP, the company will deeply benefit from the increase in the amount and complexity of SiP modules on a single mobile phone and the outbreak of terminal demand such as Watch. With the continuous volume of its domain control and Powertrain products, the period of rapid development of automobile business has come.
Domain control and Powertrain products are the core growth points
Main points of investment:
Increase the rating, the target price is 22.23 yuan. We estimate that the EPS of the company in 2022-2024 will be 1.28 yuan 1.64 trillion 2.01 yuan, an increase of 53% over the same period last year. With reference to the valuation level of the comparable company, the target price is 22.23 yuan, and the overweight rating is given for the first time.
Domain control and Powertrain products are expected to accelerate the volume, and the period of rapid development of automobile business has come.
The company's automotive electronic products include body control, domain control, Powertrain, ADAS four categories, of which domain control and Powertrain are the core growth points. (1) Powertrain: business covers inverters, vehicle chargers, power management systems, high voltage distribution boxes, etc., its active layout of power module assembly and testing, 2022 will be mass production of automotive IGBT modules, cooperation customers are global first-tier car factories, future orders are expected to gradually increase. (2) Domain control: business covers intelligent cockpit related display control PCBA and so on. The rapid growth of Harman orders from downstream customers will further drive the continuous volume of the company's domain control products.
SiP module opens the room for growth, and the company's share is ahead of the industry development dividend. The company relies on the sun and moonlight and deeply binds A customers, the technology first-mover advantage is significant; at the same time, it continues to expand non-A business by virtue of deep accumulation. (1) Communication category: it is the core supplier of WiFi module, AiP module and UWB module of A customer's mobile phone. In the future, it will deeply benefit from the increasing demand for SiP module and the general trend of increasing millimeter wave AiP permeability under the systematic trend. (2) Consumer electronics: the company supports A customer Watch and TWS headphone SiP products for many years, with the outbreak of demand for Watch products and the launch of follow-up new categories of A customers, the performance is expected to continue to grow.
Catalyst. Monthly revenue exceeded expectations; new products of automobile power modules were further released.
Risk hint. The risk of worsening the epidemic; the uncertainty of trade friction between China and the United States