\u3000\u30 Chongqing Baiya Sanitary Products Co.Ltd(003006) 79 Electric Connector Technology Co.Ltd(300679) )
[matters]
The company recently disclosed an announcement on the progress of repurchasing the company’s shares. According to the proposal on share repurchase plan approved by the general meeting of shareholders of the company, the company uses its own funds to repurchase part of the social public shares of RMB common shares issued by the company in the form of centralized bidding transaction for equity incentive or employee stock ownership plan. The total repurchase fund is 100200 million yuan, and the repurchase price is no more than 78.03 yuan / share. As of March 31, 2022, the company has repurchased 2063500 shares of the company through the special account for share repurchase, accounting for 0.49% of the current total share capital of the company, and the total amount paid is about 100 million yuan.
[comments]
The company continues to cultivate the field of RF connectors and has reached the world-class level. The company has the ability to design and manufacture high-reliability and high-performance products. The self-developed micro RF connector has significant technical advantages and has reached the same technical level as the world-class connector manufacturers. The products are widely used in smart mobile terminal products represented by smart phones, Internet of vehicles terminals, smart appliances and other emerging products.
The product and business layout continues to diversify, and the automobile high-speed connector is expected to become the biggest bright spot. The main products include RF connectors and components, which are key electronic components in smart mobile terminal products such as smart phones and other emerging smart devices. In 2021, the company’s shipment of automobile connector products maintained a relatively rapid growth. In order to keep up with technological innovations such as 5g and automatic driving, which will bring a qualitative leap to the Internet of vehicles industry, the corresponding fakra, mini-fakra and Gigabit Ethernet high-speed connectors and harnesses came into being, which is a new battlefield of high-speed data transmission in the automotive field. Relying on its experience in the RF field, the company invested in the development of automobile connectors in 2014 and created a complete range of product categories. The products have entered the supply chain of major Chinese automobile manufacturers such as Geely, great wall, Byd Company Limited(002594) , Chang’an and so on. The development of electric and intelligent vehicles is accelerating. With the evolution of centralized automotive electronic architecture, higher requirements are put forward for high-speed and accurate on-board communication capability. The company’s deep cultivation and accumulation in high-speed connectors is expected to directly benefit.
Repurchase is used for equity incentive or employee stock ownership plan to demonstrate development confidence. The company’s implementation of the repurchase plan is beneficial to promoting the healthy, stable and long-term development of the company, enhancing investors’ confidence in the company and safeguarding the interests of the majority of investors. At the same time, in order to establish a perfect long-term incentive mechanism, the enthusiasm of the company’s middle and senior managers and core backbone personnel is fully mobilized.
[investment suggestions]
It is estimated that the company’s revenue from 2021 to 2023 will be 3.262 billion yuan, 4.015 billion yuan and 4.958 billion yuan respectively, the net profit attributable to the parent company will be 381 million yuan, 533 million yuan and 671 million yuan respectively, and the EPS will be 0.91, 1.27 and 1.60 yuan / share respectively, corresponding to 33, 24 and 19 times of the current PE respectively, which will be rated as “overweight”.
[risk tips]
Lower than expected downstream market demand
The rising cost of upstream raw materials has put pressure on the profitability of the company
