Hongfuhan (301086): new energy business of functional parts+automation equipment platform supplier helps new growth
[Key Investment Points]
Functional devices+automation equipment are linked to create a platform based solution supplier. The company has deeply cultivated consumer electronic precision functional parts. Through years of technology accumulation, its business has extended to the automation equipment field used by downstream customers in processing, and has formed the synergy advantage of "key die cutting materials+core automation equipment" linkage, Provide comprehensive solutions for downstream customers, and steadily increase the share of products.
Multiple breakthroughs in the field of new energy create a new growth pole. In the field of new energy vehicles, the company mainly develops equipment, heat conduction plates, functional devices and other products. In terms of equipment, the company focuses on the middle and rear section equipment of lithium battery. Currently, it has obtained the order of GAC Ai'an New Energy Vehicle, and other mainstream battery companies are negotiating cooperation. The equipment design scheme has passed the demonstration, which will benefit from the continuous growth of demand for lithium battery in downstream new energy vehicles, energy storage and other fields. In terms of heat conduction plate products, the company provides battery liquid cooling plates for power battery customers based on its experience in R&D and manufacturing of heat conduction modules. The liquid cooling plate is the core component of the liquid cooling function module of battery thermal management. The temperature environment of the battery pack of the power battery has a great impact on the reliability, life and performance of the battery cell. Therefore, battery thermal management is an important guarantee for new energy vehicles. As the sales volume and penetration rate of new energy vehicles continue to increase, the demand for liquid cooling plates will also keep rising. The company actively expands process experts in the field of new energy and battery, quickly complements process weaknesses, adds its rich experience in the field of industrial automation, cuts into the field of new energy from the field of consumer electronics, quickly achieves business breakthroughs, and creates a new growth pole.
The layout of upstream materials, business expansion and profitability are expected to continue to improve. The company has mastered key processes and equipment such as OCA glue ratio, base film surface coating, and R&D formula of high-performance PI tape. The self-developed production of upstream electronic functional materials will help the company to develop new customers in the consumer electronics industry, and will also help the company to enhance the profitability of its main business.
[Investment Proposal]
It is estimated that the company's revenue in 2022-2024 will be 951 million yuan, 1249 million yuan and 1612 million yuan respectively, and the net profit attributable to the parent company will be 164 million yuan, 211 million yuan and 278 million yuan respectively, the corresponding EPS will be 2.74 yuan, 3.51 yuan and 4.64 yuan/share, and the corresponding current PE will be 28 times, 22 times and 17 times respectively. We selected comparable companies from the functional device industry and equipment industry, gave them 30 times PE in 2023, and gave them a 12-month target price of 105.30 yuan, which was upgraded to the "buy" rating.
Risk Tips
The introduction and expansion of new products were less than expected, and the development of new customers was less than expected.
Consumer electronics market demand is weak, and terminal shipments are less than expected.
The exchange rate fluctuates sharply.
