Suzhou Recodeal Interconnect System Co.Ltd(688800) connector little giant new energy vehicle helps the performance take off

\u3000\u3 Guocheng Mining Co.Ltd(000688) 800 Suzhou Recodeal Interconnect System Co.Ltd(688800) )

Taking connector products as the core, the company continues to develop iterations and adheres to customer demand orientation. Now it has the supply capacity of a complete product chain including connectors, components and modules, and provides solutions for integrated connection systems in the fields of mobile communication, new energy vehicles, industry and rail transit. In 2020, the company was selected as the national specialized new "little giant" enterprise.

The company has deep customer resources. The communication field mainly serves mobile communication equipment integrators and professional connector manufacturers such as Zte Corporation(000063) , Ericsson and Nokia. The new energy vehicle field mainly serves American T company, Weilai automobile, Saic Motor Corporation Limited(600104) , Contemporary Amperex Technology Co.Limited(300750) and other vehicle enterprises and "three power" enterprises.

There is a strong demand for the networking construction of 5g communication base stations. The construction of new base stations has generated an incremental demand for connector products. The market demand of communication base station equipment industry is improving, driving the increase of product sales of the company.

The new energy vehicle industry is in a period of rapid penetration, and more and more market participants begin to enter the field of "power exchange". As the main supplier of electric connector of Weilai automobile, the company has profound technology accumulation. With the popularization of electric vehicle replacement and power station replacement, the sales volume of electric connector products of the company will increase rapidly.

The continuous and rapid development of automobile electrification drives the continuous and large volume of high-voltage connectors. The company's high-voltage and high current products have been supplied to mainstream new energy vehicle enterprises such as Weilai and Tesla. With the popularity of 800V high-voltage platform, such high-end products will continue to benefit.

The promotion of automotive intelligence drives the application of on-board intelligent network connector. The company has actively arranged the field of ADAS, basically completed the relevant product development, and has carried out relevant cooperation with some customers to form a new performance increment.

Investment suggestions:

We predict that the company's operating revenue from 2022 to 2024 will be 1.526 billion yuan, 2.343 billion yuan and 3.301 billion yuan, with a year-on-year increase of 69.21%, 53.56% and 40.86%. From 2022 to 2024, the net profit attributable to the parent company was 205 million yuan, 342 million yuan and 506 million yuan, with a year-on-year increase of 80.09%, 66.86% and 47.75%.

Based on the comprehensive valuation of comparable companies, considering the high prosperity and large growth space of the company's new energy vehicle business, the company is given a valuation of 55 times PE in 2022, with a corresponding share price of RMB 10.442 and a market value of RMB 11.278 billion. Covering the company for the first time and giving a "buy" rating.

Risk tips:

The sales volume of new energy vehicles is less than expected, the construction of 5g communication is less than expected, the accounts receivable cannot be recovered, the inventory price falls, the price of raw materials rises, the risk of technology iteration, the epidemic control is less than expected, and the development of foreign business is less than expected.

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