Lens Technology Co.Ltd(300433) (300433)
We covered Lens Technology Co.Ltd(300433) (300433. CH) for the first time and gave a “buy” rating. The target price in the next 12 months is 28.0 yuan, with a potential increase of 20.1%.
Deeply cultivate smart phone components and assembly, and actively expand automotive electronics: on the basis of the main products of mobile phone cover glass, Lansi actively expands the appearance and structural parts of metal, sapphire and other materials. At the same time, Lansi expands the auxiliary materials for glass processing upstream to ensure the safety of supply and improve the cost structure; Expand the structural parts and assembly business downstream and continuously deepen the layout of smart phones and smart hardware. Lansi has also improved the product line of automotive electronic glass and entered the top new energy vehicle enterprises, which is expected to directly enjoy the dividend of the rapid growth of new energy vehicle intelligence in the next few years. Therefore, we remain optimistic about the future of Lens Technology Co.Ltd(300433) and expect the company’s profits to increase by 22% and 30% year-on-year in 2022 and 2023.
From the development of parts enterprises like platform companies: first, the growth of Lansi’s basic plate glass cover plate industry remains stable to escort its performance. Secondly, around apple, Lansi has built all material capabilities from glass to metal. With the help of its own cover glass products, the ability to display the touch module is preliminarily realized. At the same time, by acquiring Kecheng Taizhou factory, Lansi obtained the structural parts capability of Apple mobile phone. The metal structure business will grow significantly in 2022, which is an important driving force for Lance’s performance. Finally, with the help of its parts capacity, Lansi expanded its downstream assembly business, increased its output value and promoted its growth. In the Android camp, lance has taken the lead in the assembly business.
Fully enjoy the accelerated growth dividend of new energy vehicles and automotive electronics: due to the increased demand for intelligence of new energy vehicles, the ability of Lansi to consume electronic glass is expected to migrate to the automotive industry and promote the development of the industry. Lansi has entered a number of products in the head new energy vehicle enterprise customers, including central control panel, instrument panel components, B-pillar components, etc. Therefore, Lansi can directly enjoy the growth dividend of the new energy vehicle industry and promote the improvement of the company’s valuation.
Valuation: the segment aggregation method is used to evaluate Lansi, and the 2022 P / E ratios of 23x, 20x, 45x and 50x for small and medium-sized appearance parts, large-sized appearance parts, new materials and other products and other businesses are respectively given to obtain the target price of RMB 28.0, with a potential increase of 20.1%.
Investment risk: the recovery speed and degree of global smartphone and automobile industry are lower than expected; The supply structure of semiconductor industry has improved slowly; The value of smart phone structural parts / appearance parts increases slowly or decreases; Intensified industry competition has dragged down the company’s gross profit margin and profit performance; The company increased investment in new business and the cost rate increased.
