occurrences

Feirongda issued an announcement: The company expects to achieve net profit of 0.103 billion yuan to 0.11 billion yuan in the first three quarters of 2024, an increase of 109.74% to 124% over the previous year.

Key points of investment

2024Q3 profit performance is in line with expectations

The company expects to achieve revenue of about 3.422 billion yuan/yoy+ 17% in the first three quarters of 2024, and 2024Q3 revenue of about 1.253 billion yuan. The company expects net profit to be 0.103 billion yuan to 0.11 billion yuan/yoy +109.74% to 124.00% for the first three quarters of 2024, of which net profit to mother will be 0.046 billion yuan to 0.053 billion yuan/yoy+ 2.02% to 17.55% in 2024Q3.

More blooming, impressive performance in consumer electronics and communications

Consumer electronics sector: Benefiting from the recovery in market demand in the domestic consumer electronics business industry and improving orders, the market share of the company's mobile phones and laptop terminal products continues to increase, shipments increase, gross margin increase, and profitability increase. Communications sector: The company's market share in the communications sector has increased, production capacity has been released, gross margin has increased significantly, and profitability has increased year-on-year. The company's server-related business actively cooperates with customer proofing and small-batch delivery, and cooperation is progressing in an orderly manner. New energy business: The company actively expands the application of new energy vehicles, enhances the competitiveness of the company's products, and the number of orders continues to grow. Gross margin in the new energy sector has declined due to factors such as rising raw material prices, introduction of new customers, and sampling of some new projects. The PV inverter and energy storage business was affected by the market environment, leading to a decline in order volume, and revenue fell short of expectations.

Focus on heat dissipation, focus on major customers, and strengthen core competitiveness

Focusing on major customers such as Huawei, Sunshine Power, Meta, Microsoft, and Lenovo, the company focuses on core products such as heat dissipation and electromagnetic shielding, and is actively expanding in product categories and customers. Overall, all of the company's businesses have achieved a good competitive position and development trend in the market.

Profit forecasting

The company's net profit for 2024-2026 is estimated to be 0.231, 0.349, and 0.456 billion yuan, respectively, and EPS is 0.40, 0.60, and 0.79 yuan respectively. The current stock price corresponds to PE of 55, 37, and 28 times, respectively. Based on the company's continuous strengthening of its core competitiveness and actively exploring new fields such as liquid cooling, it maintains a “buy” rating.

Risk warning

Demand falls short of expectations; raw material prices fluctuate; cost control falls short of expectations; new customer development falls short of expectations.