20240312-招银国际-英恒科技-01760.HK-FY23E_Preview__industry_headwinds_mostly_priced_in__Awaiting_recovery_in_FY24E_10页_1mb

Intron Tech (1760 HK) Equity Research Summary

• Company Overview: Intron Tech is an auto electronics provider focused on segments like new energy vehicles (NEVs), body control, safety, and automation, with exposure to automotive electrification and intelligence.

• FY23E Performance: Estimated revenue of RMB 5.76 billion (+19% YoY) and net income of RMB 319 million (-23% YoY). Revenue growth was supported by NEV-related segments, but margins declined to 19.0% due to downstream OEM pricing pressure, weaker cloud server performance, and higher R&D/interest costs. Segment-by-segment, revenue grew by 34% in NEV solutions, while cloud server declined 53.9% YoY.

• FY24E Outlook: Revenue and net profit expected to grow by 20% and 52% YoY, respectively, driven by leading market position in auto electronics, new product ramps (e.g., ADAS applications), and NEV industry expansion. Cost management through economies of scale should support share gains despite ongoing margin pressures.

• Valuation: Analyst recommends Buy with a target price of HK$6.10, based on a 12x FY24E P/E, which is 24% below the 5-year average. Valuation compares unfavorably to automotive peers (avg. 22.3x FY23E P/E), positioning Intron as undervalued with a dividend yield of 4.8%.

• Key Catalysts: Positive NEV policies, rising ADAS/AD penetration rates, potential easing of NEV price pressures, and timely release of FY23E results and FY24 guidance.

• Risks: Slower business growth, persistent OTM margin issues, intensified downstream OEM competition, and execution risks in new product launches.

Financial Highlights: Current price HK$2.01, predicted P/E ratios: 6.3x (FY23E), 4.1x (FY24E). Dividend yield 4.8%, with net profit growth expected to accelerate to 52% YoY in FY24.