20230818-招银国际-英恒科技-01760.HK-1H23E_Preview__strong_growth_despite_industry_headwinds__expect_back-loaded_in_2H23E_8页_1mb

Company Overview

Intron Tech is a Hong Kong-listed company specializing in automotive components, particularly in new energy vehicles (NEVs), electrification, and intelligent vehicle solutions. It operates in a challenging but growing market with strong penetration in NEV segments.

Financial Performance and Forecast

• Recent Results: Expected 1H23E revenue of RMB 2.66bn (+28% YoY) and net income of RMB 191mn (+25% YoY), driven by NEV shipments and auto electrification, despite OEM price pressure and weaker cloud server business.
• FY23-25E Projections: Full-year revenue growth at 37.6% to 11,101 mn by 2025, with net profit growth trimmed slightly to 34.5% YoY for FY23E due to higher R&D expenses and slower traditional business.
• EPS and Valuation: Traded at 8.2x FY23E P/E and 6.0x FY24E P/E; target price HK$7.01 (55% upside), based on 12x FY23E P/E, making it attractively priced compared to A/H-listed peers.

Segments and Growth Catalysts

• Revenue Breakdown: Key growth from new energy and automation & connectivity segments (e.g., 100% YoY in automation), offset by declines in cloud server (-60% YoY due to key customer weaknesses). Automotive segment growth driven by ADAS penetration and NEV client share gains.
• Catalysts: Rising ADAS adoption, potential NEV policies, new product launches, and share gains. Downside risks from auto OEM price competition and potential de-spec trends.

Analyst Recommendation

• Rating: Maintain "Buy" with 55% upside potential. ("HOLD" or "SELL" indicates lower potential, but this report emphasizes the buy recommendation based on growth outlook.)

Risk Factors

• Facing industry headwinds like price pressure from Oems and generalized market challenges. However, anticipated strong performance in NEV-related segments could mitigate these risks.