Event: the company released its financial results for the first quarter of 2024, and 2024Q1 achieved operating income of 134,Dreamplayph90 million yuan, an increase of 3.8% over the same period last yearDreamplayphThe net profit returned to the mother was 330 million yuan, an increase of 20.6% over the same period last year. The performance is in line with expectations, and the growth rate of cloud, storage and automotive business is considerable. (2024Q1:1) on the revenue side, the company's revenue grew 3.8% year-on-year. In terms of business, communications business increased slightly compared with the same period last year, and revenue from cloud and storage and automotive electronic products grew at a high speed, of which revenue from cloud and storage business increased by 41.2%, and revenue from automotive electronics business increased by 37.7%. Affected by the prosperity of the downstream industry, revenue of industrial and consumer electronics products decreased by 22% and 2.2% respectively. From the perspective of structure, the proportion of revenue from cloud, storage and automotive electronics has further increased to 11.5% and 12.1%. 2) on the profit side, the company's return net profit increased by 20.6% compared with the same period last year. The company's gross profit margin is about 9.6%, an increase of about 0.5ppm over the same period last year; the net profit margin is 2.5%, an increase of about 0.3pp over the same period last year. The increase in the company's profitability is mainly due to the increase in the proportion of high gross profit margin business. 3) from the expense side, the company's sales expense rate is about 0.8%, an increase of 0.2pp over the same period last year, mainly due to the increase in overseas operating costs and related expenses of newly added operators; the management expense rate is 2.4%, an increase of 0.4 ppm over the same period last year; and the R & D expense rate is 3.2%. Increase 0.1pp compared with the same period last year. Make efforts to lay out the automotive electronics business, and the automotive electronics business has achieved sustained and high growth. The company has more than 30 years of experience in the EMS field of automotive electronics business, superimposing cooperation and collaboration with the parent company to cover key process technologies from chips, modules to the system side. The company has successively mass-produced the application products of electric vehicle power system, battery management system and heat dissipation system; in 2023, the company began to mass-produce SiC power modules to further expand the layout of automotive electricity business. In October 2023, the company completed the acquisition of Hershman Automotive Communications, strengthening the company's R & D and design capabilities in the field of automotive antennas and automotive communications. In the future, with the further mass production of new products related to automobile and electricity, the company's car and electricity business is expected to achieve sustained and rapid growth. Profit forecast and investment advice. It is estimated that the return net profit of the company from 2024 to 2026 is 23.7,29.2 and 3.42 billion yuan respectively, and the return net profit is expected to maintain a compound growth rate of about 21% in the next three years. Taking into account the company's industry leadership in the field of SIP, the increased demand for SiP from major customers and newly expanded customers, the high growth of automotive electronics business, and the catalysis of the accelerated development of artificial intelligence applications to the cloud and storage business, we conservatively give the company 18 times PE in 2024, corresponding to the target price of 19.26 yuan, covering for the first time and giving a "buy" rating. Risk tips: international trade friction escalation risk; market competition intensification and product sales instability risk; SiP demand lower than expected risk; consumer electronics industry demand pick up less than expected risk. [disclaimer] this article only represents the views of a third party and does not represent the position of Hexun. Investors operate accordingly, at their own risk.
[disclaimer] this article only represents the views of a third party and does not represent the position of Hexun. Investors operate accordingly, at their own risk.
