\u3000\u3 China Vanke Co.Ltd(000002) 475 Luxshare Precision Industry Co.Ltd(002475) )
[matters]
The company recently issued an announcement on the share increase plan of one of the company’s actual controllers and the vice chairman. Mr. Wang Laisheng, one of the actual controllers and vice chairman of the company, plans to increase his shareholding in the company through the Shenzhen stock exchange system. The amount of the proposed increase is no less than RMB 200 million and no more than RMB 400 million; The implementation period shall be completed within 6 months from the date of announcement of the shareholding increase plan.
[comments]
The performance forecast of 22q1 increased steadily year-on-year, and the forward-looking layout was effective. The company previously released the performance forecast of 2022q1. It is expected that the net profit attributable to the parent company in 2022q1 will increase by 25-30% year-on-year to RMB 1.687-1.754 billion, and the deduction of non net profit will increase by 20-25% year-on-year to RMB 1.401-1.459 billion. During the period, business disturbances such as epidemic and shortage of materials outside China remained severe, which continued to have an impact on the manufacturing industry. Facing the difficulties and challenges of the external environment, the company has always unswervingly planned and implemented the “three five years” strategic deployment, and further deepened the forward-looking layout of the company’s development in combination with the new situation and new opportunities.
The acoustic wearable business is stabilizing, and the advantages of vertical integration and resource integration are obvious. After experiencing the accelerated demand of the market and consumers for acoustic wearable products, the shipment of acoustic wearable products of the company experienced a correction in 2021, which had a phased impact on the revenue and profit. It is expected that the business will stabilize as a whole in 2022. In 2021, it invested abroad and held the shares of Likai precision, realizing the rapid growth of business scale in the mobile phone precision display structure module business. Due to the large proportion of early-stage investment and materials in the cost structure, it put a certain pressure on the overall profit margin. The company continues to strengthen industrial layout, product R & D and market development. Through leading technical strength and excellent quality assurance ability, the company gains high recognition and trust from customers in smart wearable, precision structure module, system packaging, mobile phone, optical display module and other businesses.
Fund raising, production expansion and optimization capacity, and continuous expansion of product line. In February 2022, the company announced that it plans to raise 13.5 billion yuan through non-public offering. In addition to the production line construction and technical upgrading of intelligent wearable products and intelligent mobile terminal precision components, the company will continue to layout and expand the product lines such as new energy high-voltage connection system, semiconductor advanced packaging and testing products, intelligent vehicle connection system and so on.
The growth path is clear, and the increase of shares shows development confidence. The company issued an announcement that Mr. Wang Laisheng, one of the actual controllers and vice chairman, plans to increase his shareholding. As of April 11, 2022, Mr. Wang Laisheng held a total of 5.2277 million shares of the company, accounting for 0.07% of the company’s shares. Based on the recognition of the company’s internal value and firm confidence in the future sustainable development, as well as the social responsibility to jointly promote the stable and healthy development of the capital market, he chose the opportunity to implement the shareholding increase plan, which demonstrated the confidence of the company’s leaders in the future development of the enterprise.
[investment suggestions]
In the face of severe conditions such as epidemic situation, lack of core, rising raw material prices and transportation costs, the company has unswervingly implemented strategic planning, continuously strengthened industrial layout, gave full play to the advantages of vertical integration, continuously diversified and expanded product lines, provided excellent, comprehensive and high-quality services for customers in various fields, and further deepened customer relations. We raised the expected revenue scale of the company from 2021 to 2023 and adjusted the gross profit margin and period expense rate. It is estimated that the revenue of the company from 2021 to 2023 will be 154106 billion yuan, 195528 billion yuan and 244329 billion yuan respectively, the net profit attributable to the parent company will be 7.118 billion yuan, 10.285 billion yuan and 13.903 billion yuan respectively, and the EPS will be 1.01, 1.46 and 1.97 yuan / share respectively, corresponding to 28, 19 and 14 times of the current PE respectively, maintaining the “buy” rating.
[risk tips]
Downstream market demand continued to be lower than expected
The sharp fluctuation of exchange rate has an impact on the performance
