Zhang Zhonghua
Domestic computer manufacturers have invested in industrial computers (IPC). For example, ASUS (2357) invested in Advantech (2395), and Compal (2324) invested in Avalue (3479). These major computer manufacturers have recently actively participated in the management of industrial computer factories or entered into strategic alliances. It can be seen that industrial computers have great business opportunities.
The legal person estimates that the IPC market size will grow to US$6.5 billion in 2027. Based on US$4.7 billion in 2021, the compound annual growth rate will reach 5.6%. Since 2023, the industrial computer industry has been challenged by destocking, resulting in weak performance in the first and second quarters. Considering the time difference, IPC factories are generally one to two quarters slower than consumer electronics products to recover. The market views the third quarter conservatively. By the fourth quarter, conditions are expected to recover. The fourth quarter is the closing season for various types of tenders and projects, which is expected to have an impact on the performance of IPC companies.
IPC is widely used in communication, medical, environmental protection, aviation and industrial automation situations, ranging from POS cash registers to factory production machines. With the development of 5G, Industry 4.0, Industrial Internet of Things (IIoT), and Artificial Intelligence Internet of Things (AIoT), IPC is expected to usher in strong demand.
Huahan’s revenue in the first half of the year hit an 11-year high and is committed to developing the industrial metaverse
Huahan (6414) is the world’s largest ATM brand manufacturer and one of the top three POS brand manufacturers. Revenue in June was 10.113 billion, and revenue in the first half of the year was 57.425 billion, an annual increase of 25.29%, a new high in eleven years, and first quarter EPS was 4.64 Yuan.
Huahan has only been on the market for about ten years, but its revenue has reached 100 billion in 2022! In January 2022, it reached a strategic partnership with Google to seize IPC 3.0 business opportunities. The company is optimistic about the future of cloud and land integration business, continues to develop AIoT hard and soft cloud solutions, and continues to develop the industrial metaverse.
Huahan’s monthly revenue growth rate has been positive since February 2021, and it even showed double annual growth in May and June this year. In terms of stock price performance, it has increased by about 40% since the beginning of this year, showing an upward trajectory with a high bottom and a high bottom. In the short term, there is high-level counter-pressure, and the support falls approximately on the monthly line.
NEXCOM Vietnam plant is expected to gradually contribute in the third quarter
NEXCOM (8234), consolidated revenue in June was 476 million, revenue in the first quarter was 1.664 billion, and EPS was 0.92 yuan. The short-term impact of inventory has led to a decline in revenue. It is expected that inventory will return to a healthy state in the third quarter, and it is optimistic that growth will gradually resume in the fourth quarter.
NEXCOM is not just an industrial computer hardware manufacturer, but has also transformed into a total solution provider for Industry 4.0. Its subsidiary NEXCOM Intelligent has performed strongly in accepting orders, and its main goal is to expand the cross-strait and Southeast Asian markets. In the first quarter of this year, it successfully obtained a project from Taiwanese businessmen to set up factories in Vietnam, and it is expected to gradually contribute to revenue from the third quarter.
NEXCOM’s consolidated revenue for 2022 will be approximately 7.917 billion yuan, an annual increase of 16.76%. Last year’s EPS was 6.39 yuan, an annual increase of 5.39 times. The stock price has increased by about 70% since the beginning of the year. The stock price has not soared directly, but has shown a steady trend of rising and consolidating. It is expected to challenge a new high of 70 yuan in the future.
IEI engages in AI themes to strive for revenue in the second half of the year
Industrial computer manufacturer IEI (3022) had revenue of 601 million in June and 2.154 billion in the first quarter, an annual increase of 38.4%. EPS was 2.14 yuan, an annual increase of 53.96%. The company is optimistic that the Netcom business, medical care and ODM business can grow simultaneously, so that the full-year performance can maintain double-digit growth.
IEI’s main product development projects are based on the AI theme, including network communications and edge computing, high-speed DDR5 memory testing equipment, high-performance modular AI edge computing systems, etc., which are expected to become new business momentum in the future. Regarding special projects, IEI is actively seeking to bid for voting machines in the United States in 2024.
Revenue in 2022 will be 7.942 billion, an annual increase of 27.21%. Last year’s EPS was 8.45 yuan, an annual increase of 72.45%. The stock price has recently been in a volume consolidation stage, and the legal person is optimistic that the stock price is expected to rise to 90.5 yuan.
