20230503-招银国际-中国特种纤维-00285.HK-1Q23_beat_on_better_GPM__Maintain_HOLD_on_fair_valuation_7页_1mb

BYDE 1Q23 Company Update Summary

Key Financial Results

• 1Q23 Performance: Revenue grew 26% YoY and net profit surged 155% YoY, beating market expectations. The improvement was driven by Apple share gains, increased sales of household energy storage and automotive products, and better cost control. Gross profit margin (GPM) improved by 2.2 percentage points to 7.7%, reaching pre-COVID-19 levels, due to better product mix and higher utilization.

Future Outlook

• Android Business: Management expects recovery in 2H23, driven by mid-to-high-end model demand and sequential improvement in FY23E.
• Apple Share Gain: Continued through FY23/24E, primarily from increased iPad OEM/components business.
• Growth Segments: BYDE anticipates strong growth in FY23E from:
  • Intelligent products (e.g., smart home and energy storage) with household energy storage sales expected to grow 50-100% YoY, fueled by European expansion.
  • Automotive segment, supported by parent company orders and partnerships with companies like NVIDIA and Continental, amid ongoing demand slowdown and price wars.
• Earnings Revisions: Adjusted FY23-24 EPS by 1-2% to reflect improved GPM from better revenue mix and utilization.

Valuation

• Current Stock Data: Price of HK$23.65, market cap of HK$53.28B, trading at 16.0x FY23E P/E and 1.7x P/B.
• Target Price: New SOTP-based target price of HK$22.2 (up 6.1% from HK$20.30), implying 14.1x FY23E P/E. This is based on 10x and 15x P/E multiples for EMS and components businesses, respectively, and reflecting growth potential in new intelligent and auto intelligent segments.
• Recommendation: Maintain HOLD on fair valuation.

Conclusion

BYDE's strong start to 2023 stems from operational improvements and diversification into energy storage and automotive, with a cautiously positive outlook for key segments. Shareholders should hold the stock pending further developments.