2021-10-28-新华汇富金融-信利国际（00732）_汽车产品业务增长强劲_3页_430kb

报告摘要

Xinli International (0732 HK) Stock Analysis Summary

Company Overview

Xinli International is a Hong Kong-based company primarily engaged in manufacturing and selling liquid crystal display (LCD) products, including touchscreens and electronic components for automotive, consumer electronics, and medical applications.

Analyst Recommendation

The report maintains a long position with a revised target price of HKD 3.70, down from a previous target of HKD 5.20. The stock is evaluated at approximately 6.1 times the forward year 2021 price-to-earnings (P/E) ratio, suggesting a potential upside.

Key Growth Drivers

Auto Business Expansion: Driven by chip shortage impacts limited to delayed product launches, but overall sales momentum is robust. Expected to contribute 41.5% three-year compound annual growth rate (CAGR), due to enhanced product mix and higher average selling prices.
Product Diversification: Non-smartphone business contribution is set to rise from 43% in FY20 to 62% in FY23, supported by expanded partnerships with automakers like Mercedes-Benz, Changan, and Great Wall Motors.
Capacity Expansion: New production lines in Shenzhen and Renhou will increase monthly output by 160,000 units in FY2022–2023, potentially raising overall profitability from 12.5% in FY21 to 16.0% in FY23.

Financial Projections

Revenue Growth: Forecasted to grow at 54.7%, 47.9%, and 23.89% in FY2021, FY2022, and FY2023, respectively, reaching HKD 54.9 billion, HKD 81.2 billion, and HKD 100.6 billion. This results in a strong 63.42% compound annual growth rate over three years.
Profitability: Estimated profit increases of +83%, +34%, and +29% for FY2021, FY2022, and FY2023, respectively, reaching HKD 12.67 billion, HKD 16.97 billion, and HKD 21.92 billion, with a forecasted bottom-line improvement.
Valuation: Current valuation compares favorably to peer companies, with an average P/E of 10.1 and a own estimate of 10x forward P/E in FY2021.

Analyst Views and Risks

Positive Factors: Maintaining strong demand from automotive clients, capacity utilization, and potential market share gains from supplier exits. Key risks include ongoing semiconductor shortages and ﬁscal pressures.
Recommendation Confirmation: Keep long position based on stable growth outlook, with valuation not considered overly expensive and chip shortages not severely impacting performance.