Investment points:
UpregulatePerformanceIt is forecasted to maintain the overweight rating.Based on the high prosperity of power tools and intelligent products, the company will be upgraded to the parent company in 2021Net profitThe forecast is 595 million yuan (+2.9%), and the 2022-2023 net profit attributable to the parent is maintained at 817 million yuan and 1.143 billion yuan, corresponding to an EPS of 0.65/0.89/1.25 yuan. We are optimistic about the high growth of the dual business and raise the target The price is 30.23 yuan (+2.9%), and the “overweight” rating remains unchanged.
In a complex environment, the performance slightly exceeded expectations.Company AnnouncementIn 2021, H1 will achieve a net profit of 260 million yuan to 294 million yuan, a year-on-year increase of 55%-75%, with a median of about 280 million yuan, a year-on-year increase of 65%.
In the first half of the year, despite the price increase of electronic components, the tight supply, and the sharp appreciation of the RMB, the company was still able to achieve high revenue and profit growth. First, a number of measures such as stocking, price transmission, and exchange management were adopted to ensure delivery and Stable earnings; Second, it also reflects the company’s strong voice as a leading company in difficult environments, and further forms a higher moat in the industry.
The increase in smart products and automotive electronics can be expected. In the smart home market, the company has deployed for many years and established subsidiaries. With Hongmeng’s inflection point promotion of the industry, we expect this business will also rapidly increase in volume and become a new increment. In terms of automotive electronics, the company has laid the foundation for growth in the next 10 years in terms of strategic choice, end customers, order volume and cycle, and product form.
The split of the radio frequency chip business was accepted. On July 3, 2021, the spin-off of its subsidiary Chengchang Technology was accepted by the China Securities Regulatory Commission. If it goes public, it will benefit the company’s financing, R&D enhancement and capacity expansion.
At present, the company’s chip business is widely used in satellite remote sensing, satellite navigation and other fields. In the future, there will be heavy volume in military products, small satellites, 5G millimeter wave and other fields, and the proportion of chip business profits will gradually increase.
Risk warning: the risk of currency exchange fluctuations, the price fluctuations of upstream components and the uncertainty of supply
(Article Source:Guotai Junan）
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