First Shanghaireleaseresearch reportsay, maintainBYD Electronics(00285) “Buy” rating based on 2022profit predictionto 17 times the PE valuation center, the target price of 23 Hong Kong dollars.
First ShanghaiThe main points are as follows:
Chip shortage troubled, looking forward to the second half of the year
The company’s annual revenue in 2021 is 89.057 billion yuan, a year-on-year increase of 21.8%.From a quarter-on-quarter perspective, revenue in the fourth quarter increased by 8% quarter-on-quarter, while gross profit fell by 8% quarter-on-quarter.net profitThe month-on-month decrease of 70% was lower than expected, mainly due to the increase in related expenses and reduction of subsidies. Among them, the revenue from parts and components decreased by approximately 11% year-on-year, mainly due to the weak demand for Android mid-to-high-end models during the year, and the increase was mainly due to the further increase in core product revenue from North American customers.
Looking back on last year, the company continued to be plagued by the impact of chip shortages and weakening demand, especially in the second half of the year, which led to a significant decline in profitability.from the industryresearchJudging from the situation, the demand in the electronics industry was weak in the first quarter of this year, so the bank believes that the overall situation of the company in the first quarter may be similar to that in the fourth quarter of last year, but as the supply of chips improves significantly, the bank expects that the company’s overall operating conditions will be improved after the second half of the year. Significant improvement, profit margins are expected to gradually pick up.
HNB overseas customers are progressing smoothly, and the automobile business is expected to become the second growth curve
Although the performance of the company’s mobile phone and notebook business in 2021 did not meet expectations, the new smart products and automotive intelligent system businesses achieved rapid growth. New smart products achieved revenue of 12.445 billion yuan, a year-on-year increase of about 31%. HNB products for overseas customers are progressing smoothly. The automotive intelligent system business achieved revenue of 3.77 billion yuan, a year-on-year increase of approximately 107%. Looking ahead to this year, products such as smart home, drones and HNB will drive new smart products to maintain high growth. With the continuous expansion of product categories to 5G communication modules, new products such as smart cockpit, smart driving, Internet of Vehicles and in-vehicle electrical appliances, the automotive intelligent system business continues to achieve more than double growth this year, and is expected to become the second growth curve in the future.
Grow with North American customers
Combined with the evaluation of various brands and products in the electronics industry in recent years, the bank believes that the performance of the two major mobile operating system camps tends to be differentiated, and the product strength of North American customers is further consolidated. With the increase in the share of core products and the introduction of new structural parts into mass production, the bank expects that the company’s revenue volume from North American customers is expected to reach a higher level this year, and will continue to benefit from the double increase in revenue and profitability brought by customers in the medium and long term. , grow together with customers.
(Article source: Zhitong Financial Network)