\u3000\u3 Shengda Resources Co.Ltd(000603) 303 Hengdian Group Tospo Lighting Co.Ltd(603303) )
With the continuous increase of LED penetration rate and the continuous liquidation of the general industry, the company expands to the sub business with high gross profit and large market space, and the vehicle business ushers in a new industry competition pattern and enters the domestic golden track; Under the epidemic situation, the substitution transfer effect continues to enlarge, and the share of made in China in global exports increases; The company focuses on the overseas market and develops at both ends, vigorously develops multiple business lines of overseas export, Chinese business and vehicle business, creates its own core competitiveness, is optimistic about the future development of the company, covers it for the first time, and gives an overweight rating.
Key points supporting rating
The LED industry ushered in the transition period, and the vehicle business entered the golden domestic track. In recent years, general lighting has been developing its sub businesses with high gross profit and large market space, such as commercial lighting and automotive lighting. At the same time, the head enterprises have stronger anti risk ability and profitability, and are expected to obtain more market share. With the change of automobile structure, manufacturers have set their sights on Chinese high-quality manufacturers, and the on-board controller has stepped into the domestic golden track. Facing the substitution effect, high-quality suppliers will also have more opportunities to seize market opportunities.
The brand strength is leading, and the vehicle business is making efforts to build core competitiveness Hengdian Group Tospo Lighting Co.Ltd(603303) brand strength is leading. Its products cover LED lamps and light sources, intelligent lighting, vehicle lighting, vehicle controller and other categories. It is mainly positioned as a professional lighting solution service provider and is committed to becoming a first-class enterprise in the field of vehicle business in China.
R & D investment remains stable and double ended to explore markets at home and abroad. The R & D expense rate was 2.32% in 2021h1, and the smart lighting and vehicle business were continuously arranged. The long-term cooperation structure with Panasonic Lighting Co., Ltd. has been optimized, accounting for 3.78 billion yuan, and the revenue of many well-known overseas companies such as Panasonic Lighting Co., Ltd. will continue to increase by 9.9% in 2020, accounting for 3.7 billion yuan.
Profit forecast and valuation
It is estimated that the company's revenue in 2021, 2022 and 2023 will be 5.2/6.2/7.5 billion yuan respectively, and the net profit will be 3.5/5.1/770 billion yuan, corresponding to eps0.5 billion yuan 7 / 1.0 / 1.6 yuan / share. The current stock price corresponds to 21 / 15 / 10 times of 2021e ~ 2023e P / E. Considering that Hengdian Group Tospo Lighting Co.Ltd(603303) as a leading company in the industry, the general lighting industry continues to clear, ushering in a good opportunity for development, covering for the first time, and giving an overweight rating.
Main risks of rating
Risk of epidemic spread; Upstream raw material price rise risk; Market competition risk.
