This report is read as follows:
The company is a leader in the air filtration industry, the basic disk of air-conditioning filter is stable, with both price increase and volume increase logic; and the company is actively expanding the new energy vehicle air filter business, the performance is flexible and sufficient.
Main points of investment:
For the first time, it will be given an "overweight" rating. It is estimated that the company's homing net profit from 2022 to 2024 is 0.99 million yuan, 122 million yuan (compared with the same period last year), and the EPS is 0.42 yuan, 0.52 and 0.77 yuan, respectively. With reference to comparable companies in the same industry, combined with PE valuation and DCF valuation method, the target price is 17.8 yuan, covered for the first time, and given the "overweight" rating.
Different understanding: the market believes that the company is a traditional air-conditioning filter supplier with low product barriers and limited incremental space; we believe that the company's air-conditioning filtration basic disk is solid and can achieve a simultaneous rise in volume and price through performance upgrading and opening up markets in Southeast Asia, and the company will also rely on excellent filtration technology to open up the second growth curve of air filtration for new energy vehicles.
Home appliance air filtration business laid a moat, automobile air filtration business to create a growth pole. 1) Home appliances: the company is the market leader in air conditioning filtration, with a relatively high-end product positioning, with a market share of 80-85% in Japan. The main customers include Daijin, etc., with a domestic market share of 30%, 35%, and the main customers are Gree and Midea. In the field of air-conditioning filtration, on the one hand, the company can improve the unit price by upgrading its anti-virus performance, on the other hand, it can follow major Japanese customers to open up emerging markets such as Southeast Asia and India, with both price increase and volume increase logic. 2) Automobile: the popularity of new energy vehicles has led to the upgrading of the demand for on-board air purification system. The traditional standard filter is 30-50 yuan per car, while the HEPA filter is 200-500 yuan per car. The company has air-conditioning filtration technology collaborative empowerment, and long-term in-depth cooperation with the top automotive air filtration enterprise 3M Company, rich in potential customer resources, is expected to benefit from the upgrading trend of automobile air filtration.
Catalyst: the company is determined to increase the demand for landing and antiviral filtering products
Risk hint: raw material price fluctuation risk, downstream demand fluctuation risk