Incidents:
The company announced the shipment volume for August 2024: in August 2024, the company's mobile phone lens shipment volume was 0.124 billion pieces, +7.5% month-on-month, +14.6%; mobile phone camera module shipments were 0.04 billion pieces, -9.7% month-on-month, -25.2% year-on-year; vehicle lens shipments were 0.008 billion pieces, -4.2% month-on-month and +4.3% year-on-year.
Comment:
The performance is growing rapidly, and the product structure continues to be optimized. The year-on-year increase in mobile phone lens shipments in August was mainly due to the weakening overall demand for mobile phones in the same period last year, while the market share of the company's high-end products increased. The year-on-year decline in mobile phone module shipments in August was mainly due to the company's focus on middle and high-end cases and product structure optimization. 1) Revenue from 2024H1 mobile phone-related products was 13.029 billion yuan, +34.47% year-on-year. 2024H1 mobile phone lens shipments were 0.634 billion units, +23.7% YoY, of which 6P and above mobile phone lenses were 0.162 billion units, +23.2% YoY; mobile phone camera module shipments were 0.289 billion units, +13.5% YoY. Among them, the overall shipment volume of Periscope and Large Image Modules was 0.015 billion units, +66.5% YoY.
The main reason for the increase in sales of mobile phone-related products is the recovery in global smartphone shipments and the optimization of the product structure. 2) Revenue from 2024H1 automotive-related products was 2.877 billion yuan, +16.43% year-on-year.
Among them, vehicle lens shipments were 0.053 billion units, +13.1% over the same period last year. The main reason for the increase in automotive revenue is the continued increase in market demand and the deployment of emerging fields of automotive optics. 3) 2024H1's revenue from XR related products was 0.992 billion yuan, +111.51% year-on-year, mainly due to the year-on-year increase in demand for VR pancake modules.
Mobile phone optics ushered in a profit inflection point, and multiple categories collaborated to make efforts. 1) Mobile phone business: After years of clear production capacity in the mobile phone optical industry, the profitability of mobile phone lens and camera module manufacturers has gradually improved.
At present, the company has achieved mass production of one-inch glass-plastic hybrid main camera mobile phone lenses, and shipments of various periscope mobile phone lenses continue to increase. Based on the deep accumulation of miniaturized packaging and high-precision optical assembly, the company has outstanding advantages in integrating mobile phone lenses, motors, and mobile phone camera modules. 2) Automotive business: The company has successfully developed an ADAS car lens with automatic heating function and a 3 million pixel side-view glass plastic hybrid ADAS car lens. In terms of vehicle modules, we are deepening ecological cooperation with mainstream platform solution manufacturers such as Mobileye, Horizon, Qualcomm, and Nvidia. 3) XR business: Actively developing the next generation of multi-sensor XR vision modules with better performance and more stable quality, and the product solutions are highly recognized by mainstream customers.
Profit forecast and investment advice: Revenue for 2024-2026 is expected to be 37.568, 41.809, and 47.495 billion yuan, respectively, and net profit to mother is 2.477, 2.984, and 3.449 billion yuan, respectively. Corresponding PE is 18, 15, and 13 times, respectively, covered for the first time, and given a “gain” rating.
Risk warning: Downstream demand falls short of expectations, risk of product price fluctuations