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Sunlord Electronics (002138): The rapid growth of automotive electronics in the 5G era welcomes new opportunities for development

Sunlord Electronics (002138): The rapid growth of automotive electronics in the 5G era welcomes new opportunities for development
Brief comment on the performance of the company released the interim report results: the first half of 2019 to achieve revenue12.17 ppm, a ten-year increase of 7.77%, net profit attributable to shareholders of the company1.95 ppm, with a ten-year average of 13.8%, net profit excluding non-recurring gains and losses.81 ppm, 10-year average4.95%. Operational analysis In the 天津夜网 second quarter, the single-quarter revenue reached a record high, and the automotive electronics business grew significantly.Company Q2 achieved revenue 6.73 ppm, a five-year increase of 5.5%, a record high and a net profit of 1.11 ppm, 10-year average of 10.59%, mainly due to exchange losses, research and development costs increased, financial costs increased, the company’s research and development expenditure in the first half of 84.25 million yuan, an increase of 39%.After years of layout, the company’s automotive electronics business has made breakthrough progress. In the first half of the year, the automotive electronics business has grown by 429.9%; We expect that the communication business will continue to grow with the growth of mobile phone sales, and continue to expand sales of large customers, continue to expand among domestic mobile phone brands, continue to introduce new 南宁桑拿 material numbers, and continue to achieve good growth, which is expected to exceedOverall revenue growth. The inductance of 5G mobile phones has increased significantly, expansion has increased, new material numbers have been introduced, and multiple benefits overlap, and the company has ushered in new opportunities for development.It is expected that the inductance value of 5G mobile phones will increase by more than 30%. We expect that the global 5G mobile phone penetration rate will reach 20% in 2020. The company is a domestic leader in inductance and will actively benefit.The company accounts for a relatively high proportion of Huawei mobile phones. Huawei mobile phones are expected to continue to grow, and 5G penetration will gradually accelerate, and it is expected to reach 0 in 2020.800 million to 100 million units; the company’s part in vo and oppo is not high and gradually improved; and there are many new material numbers to be gradually introduced, such as 01005 inductors, integrated inductors, fast charging transformers, LC filters, wireless chargingCoils, etc .; the company ‘s 01005 inductor has entered Skyworks, Qorvo, and Hisilicon at the same time. In 2020, driven by the demand for 5G mobile phones, the price of inductors is trying to stabilize and rise. Multiple benefits overlap. The automotive electronics and base station businesses are committed to maintaining rapid growth.The company has been working in the field of automotive electronics for many years, opening up major international customers such as Bosch and Valeo, and continuously expanding new products. The automotive electronics business has achieved rapid growth. With a large number of current orders, the company is also continuously adding new production lines.Progress in the next three years will continue to maintain rapid growth.In the field of 5G base stations, the company has developed many new products. The specially developed microwave devices have been recognized by major international companies and turned into sales. In the case of Huawei, the close exit of the United States has also brought good development opportunities to the company.It is expected that the growth will further increase. By 2020, the amount of 5G base station expansion is expected to increase significantly, and the company’s base station business is expected to achieve rapid growth. Investment suggestion We lowered our 2019 net profit to 4.6.3 billion, compared to the original 6.The decrease of 3.1 billion is 26.6%, net profit is reduced to 6 in 2020.51 ppm, compared to the original 8.The decrease of 4.7 billion is 23.14%, basically due to the increase in mobile phone sales, poor sales of home appliances, the company’s revenue growth exceeded expectations, increased research and development costs, increased exchange losses and other reasons.The company’s EPS for 2019-2021 is predicted to be 0.57, 0.81, 1.07 yuan, the current price corresponding to PE is 40.0, 28.5, 21.5 times.Upgrade to “Buy” rating, mainly driven by 5G and automotive electronics business, giving 38 times the estimate in 2020, with a target price of 30 in 2020.5 yuan. Risks 5G mobile phone penetration is not up to expectations, overall mobile phone sales are growing, competition is fierce, and prices are falling.