SUNWAY COMM(300136) 东方证券·2024-07-24 03:31Investment Rating - The report maintains a Buy rating for the company with a target price of 22.88 CNY [2][4][6] Core Views - The company is a long-term supplier to a major North American client, benefiting from the client's AI hardware upgrade trend, particularly in smartphones, tablets, and computers The company has over 10 years of experience supplying key components such as LCP RF antennas, wireless charging modules, and structural parts to leading global smartphone brands The launch of Apple Intelligence in June 2024 is expected to drive a device replacement cycle, with global generative AI smartphone shipments projected to reach 230 million units in 2024 (19% penetration) and grow by 73% to nearly 400 million units in 2025 [1] - The company is accelerating its expansion into the satellite communication business, which is emerging as a second growth curve The number of Starlink satellites in orbit increased from 953 in November 2021 to 5,420 in November 2023, with user numbers exceeding 1 5 million by May 2023 The company supplies components such as antennas, modules, connectors, and precision structural parts for commercial satellites, with its subsidiary Yalisheng Connector Co generating 630 million CNY in revenue and 100 million CNY in net profit in 2023 [1] - The company is diversifying its business into new areas such as UWB, automotive connectivity products, passive components, and connectors, transitioning from consumer electronics to a multi-business model encompassing consumer electronics, satellite communications, and smart cars It has secured supply qualifications from major automotive manufacturers including Tesla, Volkswagen, Honda, and Rivian, with per-vehicle value ranging from hundreds to thousands of CNY The company is also expanding overseas production capacity, with a new plant in Mexico set to begin operations in the second half of 2024 [1] Financial Forecasts - The report forecasts the company's net profit attributable to the parent company to be 760 million CNY in 2024, 1 01 billion CNY in 2025, and 1 24 billion CNY in 2026, with EPS of 0 78 CNY, 1 04 CNY, and 1 28 CNY respectively [2][6] - Revenue is expected to grow by 19 2% in 2024, 11 9% in 2025, and 11 2% in 2026, reaching 8 995 billion CNY, 10 067 billion CNY, and 11 195 billion CNY respectively [3] - Gross margin is projected to increase from 22 1% in 2023 to 24 0% in 2026, while net margin is expected to rise from 6 9% in 2023 to 11 1% in 2026 [3] Valuation and Peer Comparison - The company is valued at 22x PE for 2025 based on comparable companies, with a target price of 22 88 CNY [2][6] - Peer companies such as Luxshare Precision and Sunlord Electronics have average adjusted PE ratios of 26 85x for 2024 and 21 86x for 2025 [7]