Revenue in the 2024 quarterly report exceeded expectations. We are optimistic about the growth of the automotive connector business and maintain the purchase rating
The company's revenue in 2023 was 1.09 billion yuan, YOY +17.13%; net profit to mother was 72 million yuan, YOY +5.33%.
Among them, the 2023 Q4 revenue was 312 million yuan, YOY +20.56%, net profit to mother was 0.06 million yuan, and YOY -35.97%. In addition, the company announced financial results for the first quarter of 2024. 2024Q1 revenue was 331 million yuan, YOY +42.04%; net profit to mother was 0.25 million yuan, YOY +25.20%, gross profit margin 22.78%, and YOY -4.61%. The company's revenue growth in the first quarter was mainly due to an increase in the domestic NEV penetration rate, and the company's production capacity climbed smoothly. Considering the rise in raw material costs, we lowered our 2024/2025 forecast and added the 2026 performance forecast. The net profit for 2024/2025/2026 is expected to be 1.3/1.8/260 million yuan (previous value: 150/220 million yuan), and the current stock price corresponds to PE 25.8/18.5/13.0 times. We are optimistic about the company's long-term development and maintain a “buy” rating.
Automotive connector revenue grew steadily in 2023, and optimized resource allocation for the medical device business In 2023, the company's automotive connector revenue was 709 million yuan, YoY +6.36%, and gross profit margin was 32.27%, up 5.85% year on year. The increase in automotive connector shipments is mainly due to the company's complete product range and the smooth introduction of many domestic automobile customers. The increase in gross margin of automotive connectors is mainly due to the fact that the company's connector material number has reached the time point of large-scale release, and the cost of increasing the automation rate has gradually decreased. The company's mobile phone product revenue was 266 million yuan, YOY +30.55%. The revenue growth in this business was mainly due to the recovery in the consumer electronics boom in the second half of 2023. The company's energy storage business is currently in its infancy, with revenue of 204 million yuan in 2023. In addition, the company focuses on optimizing resource allocation in the main business and cleaning up long-term assets such as idle medical device production equipment and some special equipment that has reached the end of its useful life, which helps the company concentrate limited resources in areas with more strategic value and development potential.
Continue to increase investment in R&D, deepen the layout of robotics and smart cars, increase R&D investment in cutting-edge technology, carry out industry-university-research cooperation with universities, develop a multi-domain backbone network central architecture with time-sensitive networks as the backbone of Ethernet, and apply this architecture to smart cars, robots and other related fields. In terms of new products, the company will further develop new technologies and products to expand the application of high-current high-voltage modules and intelligent driving modules for new energy vehicles
Risk warning: Vehicle price risk, demand for automotive connectors falls short of expectations, consumer electronics demand falls short of expectations.