BOE VARITRONIX(710.HK):POSITIVE ON SHIPMENT RECOVERY AND CAPACITY EXPANSION IN 2H23E
BOE VARITRONIX(710.HK):POSITIVE ON SHIPMENT RECOVERY AND CAPACITY EXPANSION IN 2H23E
Despite 1H23 results miss (link), mgmt. guided 1) in-line double-digit growth for FY23E revenue, 2) shipment recovery and stabilised ASP, 3) UTR and cost control measures to drive margin recovery in 2H. In addition, mgmt. expects continued overseas expansion and OLED/Mini/LTOP products to drive growth into FY25E. We lowered our FY23-25E EPS by 8-14% mainly to reflect 1H23 auto OEM price war and rising costs from capacity ramp-up. Trading at 8.8x/7.1x FY23/24E, we think the stock is attractive. Reiterate BUY with our new TP of HK$21.53.
儘管上半年業績不佳（鏈接），但mgmt.指導了1) FY23E 收入實現了兩位數的同比增長，2）出貨量復甦和穩定的ASP，3）UTR和成本控制措施以推動下半年利潤率的回升。此外，mgmt. 預計，持續的海外擴張和OLED/mini/LTOP產品將推動 FY25E 的增長。我們將 FY23-25E 每股收益下調了8-14％，主要是爲了反映23年上半年的汽車OEM價格戰以及產能增加導致的成本上漲。我們認爲該股的交易價格爲2013/24財年的8.8倍/7.1倍，我們認爲該股具有吸引力。重申買入，我們的新目標價爲21.53港元。
Shipment recovery with stabilised ASP; rising UTR and cost control to drive margin recovery in 2H23E. During earnings call, mgmt. guided double-digit growth for FY23E revenue, which is in-line with prior guidance at beginning of 2023. Mgmt. also expects shipment recovery ahead of ASP stabilisation in 2H backed by close partnership with customers, order ramp- up, strong customer demand for system products and overseas customers new order wins. In addition, Chengdu plant UTR improvement and cost control measures will likely drive margin recovery in 2H23E.
在 2H23E 中，通過穩定的ASP恢復出貨；UTR上升和成本控制，推動利潤率回升。在業績電話會議上，mgmt. 指導 FY23E 收入實現兩位數增長，這與 2023 年初的先前預期一致。Mgmt. 還預計，在與客戶的密切合作、訂單增加、客戶對系統產品的強勁需求以及海外客戶贏得新訂單的支持下，出貨量將在下半年ASP穩定之前恢復。此外，成都工廠 UTR 的改善和成本控制措施可能會推動 2H23E 中利潤率的回升。
2025 roadmap remains unchanged: overseas expansion and solid product pipeline (OLED/Mini/LTOP) to drive growth. Mgmt. maintained guidance of HK$20bn revenue target in 2025 (23% CAGR in FY22-25E) and overseas sales mix to reach 50% in 2025. Mgmt. believes system sales to contribute significantly to FY25E sales driven by accelerated overseas expansion. In addition, mgmt. reiterated that rising penetration of OLED/Mini/LTOP products into Chinese and overseas customers will become another major growth driver in the future.
2025年路線圖保持不變：海外擴張和穩健的產品線（OLED/mini/LTOP）將推動增長。Mgmt. 維持了2025年200億港元收入目標（FY22-25E 的複合年增長率爲23％）的預期，海外銷售組合將在2025年達到50％。Mgmt. 認爲，在加速海外擴張的推動下，系統銷售將爲 FY25E 的銷售做出重大貢獻。此外，mgmt. 重申，OLED/mini/LTOP產品對中國和海外客戶的滲透率不斷提高，將成爲未來的另一個主要增長動力。
Other key highlights. 1) Total/medium-to-large size shipment/shipment area global no.1 market share in 1Q23; 2) Chinese automobile product coverage rate reached 50% in 1H23 (vs. 30% in 1H22); 3) Chinese mainstream new energy vehicle product coverage rate reached 60% in 1H23 (vs. 41% in 1H22); 4) Chengdu plant capacity to reach 15mn+ pieces within this year.
其他主要亮點。1）23年第一季度總/中型到大型出貨量/出貨面積全球市場份額第一；2）中國汽車產品覆蓋率在23年上半年達到50％（上半年爲30％）；3）中國主流新能源汽車產品覆蓋率在23年上半年達到60％（而上半年爲41％）；4）成都工廠的產能將在今年內達到1500萬輛以上。
Reiterate BUY with new TP of HK$21.53. We believe 1H23 margin pressure has been partially priced in, and order wins and Chengdu plant ramp-up will boost margin recovery in 2H23E. In long term, we think BOEVx will benefit from auto display upgrade and overseas expansion given auto intelligence and smart cockpit trend. We lowered our FY23-25E EPS by 8-14% to reflect auto OEM price war and rising costs from capacity ramp-up. Reiterate BUY and our new TP of HK$21.5 is based on rolled-over 20x FY24E PE.
重申買入，新目標價爲21.53港元。我們認爲，23年上半年的利潤壓力已被部分抵消，訂單的獲得和成都工廠的擴張將提振 2H23E 中利潤率的回升。從長遠來看，鑑於汽車智能和智能駕駛艙的趨勢，我們認爲BoeVX將受益於汽車顯示屏升級和海外擴張。我們將 FY23-25E 每股收益下調了8-14％，以反映汽車原始設備製造商的價格戰和產能增加導致的成本上漲。重申買入，我們的新目標價爲21.5港元，基於展期20倍的 FY24E 市盈率。
譯文內容由第三人軟體翻譯。