\u3000\u3000 Luxshare Precision Industry Co.Ltd(002475) (002475)
Event: the company released the plan for non-public offering of shares in 2022. It plans to issue no more than 2.123 billion shares and raise 13.5 billion yuan for intelligent wearable equipment products, intelligent mobile terminal precision parts and components products, new energy vehicle high-voltage connection system products, semiconductor advanced packaging and testing products, intelligent mobile terminal display module products Construction of intelligent vehicle connection system product production line and replenishment of working capital.
Comments: raise funds to expand the production of consumer electronics + automobiles, strengthen the layout of products and businesses, and accelerate the growth of leading enterprises. The company plans to issue no more than 2.123 billion non-public shares and raise 13.5 billion yuan. It plans to use the raised funds of 35, 27, 15, 9.5, 8, 5 and 3.55 billion yuan for intelligent wearable equipment products, intelligent mobile terminal precision parts and components products, new energy vehicle high-voltage connection system products, semi conductor advanced packaging and testing products, intelligent mobile terminal display module products Construction of intelligent vehicle connection system product production line and replenishment of working capital. The fixed increase project helps to: 1) further expand the existing production capacity and lead the company’s business scale to a new level; 2) Strengthening the integration advantage of “parts module complete machine”, the system assembly of intelligent wearable devices, the production of advanced packaging and testing products and the production, construction and expansion of intelligent mobile terminal display modules will help to further strengthen the company’s ability to vertically integrate the supply chain; 3) Expand the production of new energy vehicle high-voltage connection system and intelligent vehicle connection system products, and grasp the development opportunities of vehicle electrification and intelligent transformation.
Firmly optimistic about the company as a consumer electronics leader, the vertical integration strategy of “parts module complete machine” supply chain is continuously strengthened + the layout of automobile business is far-reaching, and fully benefits from automobile electrification and intellectualization + active production expansion:
Expand the production of automobile connecting products and seize the growth opportunity. Auto products covering wire harness and connector products will fully benefit from the market expansion brought by intelligence and electrification + the rise of Shanxi Guoxin Energy Corporation Limited(600617) auto enterprises is expected to give priority to supporting China’s supply chain + the company’s forward-looking layout of high-voltage, high-speed and new energy products, which has been introduced into customers of new energy brands in North America, new forces of Chinese car making and other new energy vehicle enterprises + companies actively expand the production of new energy vehicles Intelligent vehicle connection products;
The group’s business collaboration + active foreign cooperation, and the long-term growth of the automobile business is sufficient. Under the dual drive of the group’s automobile business (Lisheng layout intelligent cockpit + automatic driving, Lijing innovation has the qualification of vehicle camera module) in-depth cooperation + the company’s active foreign cooperation (cooperation with Chery enabling vehicle manufacturing and cooperation with Suteng juchuang layout lidar), the company’s automobile business will meet new opportunities for development and become bigger and stronger. The 10 billion joint venture Chery + controlling shareholder acquired 20% shares of Chery, developed the vehicle ODM mode, and established a new automobile platform;
The expansion of key customer categories + the increase of share support the growth of the company’s traditional consumer electronics business, and continue to be optimistic about the company’s “parts module complete machine” supply chain vertical integration strategy. 1. Spare parts: acquire Nikai computer, improve the layout of structural parts, and fully infiltrate the layout of mechanical, optical, acoustic and electrical integration; 2. SIP: increase the gross profit margin of assembly; 3. Optics: Lijing innovated to acquire Gaowei electronics and cut into the front camera module (in vitro), so as to further enhance the optical strength of Guangbao; 4. Assembly: acquire Wistron, start iPhone assembly (in vitro), undertake the share of Taiwan manufacturers, and increase the share of Apple watch assembly.
Investment suggestion: it is estimated that the company’s revenue in 2022 / 2023 will be 150.6/188.7 billion yuan, yoy + 25.46% / 25.35%, net profit will be 11.64/14.52 billion yuan, yoy + 37.73% / 24.81%, maintaining the “buy” rating
Risk tip: the progress of non-public offering of shares is less than expected, the development of automobile electrification and intelligence is less than expected, domestic supporting facilities are less than expected, the release of Apple ar new products is less than expected, the increase of company share is less than expected, market competition is intensified, Sino US trade friction, consumer electronics sales and ASP are less than expected
