\u3000\u3 China Vanke Co.Ltd(000002) 937 Ningbo Sunrise Elc Technology Co.Ltd(002937) )
Focus on the field of precision manufacturing for more than 30 years, and the products cover the downstream high-quality customers
Ningbo Sunrise Elc Technology Co.Ltd(002937) formerly known as Cixi Gaowang Zhongxing electronic equipment factory founded in 1990, the company has been deeply engaged in the field of precision manufacturing for more than 30 years, with mold technology and intelligent manufacturing as the core. Its products cover electronic connectors, structural parts, plastic shells, inlaid injection molding parts, etc., and are widely used in the fields of home intelligent terminals, automotive electronics and consumer electronics. Its customers include CommScope of the United States, special art of France, Bosch of Germany, Haila Panasonic, Sony, Samsung and other overseas high-quality enterprises.
Intelligent terminal + automotive electronics, the two major businesses drive the company’s performance to grow at a high speed
In 2020, the company’s home intelligent terminal products accounted for about 50% of the revenue. Affected by the rapid development of 5g, Internet of things and Internet home decoration market, AI media consulting expects that the scale of China’s smart home market will exceed 200 billion yuan by 2022, with large market space. The company’s supporting customers actively expand overseas production lines. With the gradual release of expanded production capacity, the intelligent terminal business is expected to improve steadily; The overall market of automotive electronics is very broad, and the strong Dongfeng of new energy vehicles has driven the value of automotive electronic bicycles to increase significantly. The company cooperates with Panasonic, the leader of power battery, in the research and development of high-end new energy vehicle BDU precision inlaid injection molding components, actively expands the existing production capacity and continues to overweight the vehicle electronic track. It is expected that the vehicle electronic business will become an important growth point of the company’s performance in the future.
Investment advice
As a high-quality supplier in the field of precision manufacturing in China, the company is expected to maintain rapid growth in the field of product application, home intelligent terminal and automotive electronics. We estimate that the net profit attributable to the parent company from 2021 to 2023 will be 129 million yuan, 231 million yuan and 327 million yuan, corresponding to EPS of 0.44 yuan, 0.78 yuan and 1.11 yuan respectively. The latest closing price corresponds to PE of 38.33x, 21.43x and 15.11x. It is covered for the first time and given a “buy” rating.
Risk tips
Downstream demand growth is less than expected; The capacity expansion of new factories is less than expected; Repeated overseas outbreaks; Geopolitical conflicts intensified.
