Sunlord Electronics (002138) 2019 Third Quarterly Report Review: Short-term Performance Declines 5G Opens New Application Space

Sunlord Electronics (002138) 2019 Third Quarterly Report Review: Short-term Performance Declines 5G Opens New Application Space
Event: The company released the third quarter report for 2019, and the first three quarters achieved revenue of approximately 19.31 ppm, an increase of 10 in ten years.38%; net profit attributable to mother is about 2.97 ppm, a decrease of 17 per year.87%; net profit after deducting non-return to mother is about 2.75 ppm, a decrease of 14 per year.34%.  Opinion: Revenue has maintained steady growth, and price cuts have dragged short-term gross margin company Q3 revenue to 7.14 ppm, an increase of 15 in ten years.14%, revenue growth has improved compared to the first half, mainly due to the relative error of the base in 18Q3, and the company’s continued sharing of major customers.The company’s gross profit margin for Q3 was approximately 33.51%, down 4 each year.62 points, down 2 from the previous quarter.14pct, mainly due to the panic stock situation in the passive component industry in the second and third quarter of 2018, the price is stable, and it is in a state of digesting inventory in 2019, the price has fallen, and the gross profit margin has been dragged in the short term.The company’s R & D expenses in the first three quarters increased by 44 each year.32%, the company is currently in the automotive electronics, filters, magnetic materials, sensors, high-end precision inductors, precision ceramics and other fields are continuing to develop R & D; the company’s financial expenses in the first three quarters continued to increase 952.68%, mainly due to the increase in corporate loans and interest expenses, and exchange losses due to exchange rate changes; the company’s management expenses increased in the first three quarters.34%, mainly due to the largest increase in staff wages.  Overall, we believe that although the company’s short-term performance changes, it is mainly an industry-wide impact that does not change the company’s core competitiveness.With the end of the price adjustment, the company’s future profitability will gradually improve.  Inductor main customers are high quality, 5G: Application of new space Inductor is the main business of Sunlord Electronics. In addition, the company ranks in the forefront of the industry in terms of market share, and its technology has reached the domestic leading level. The small size 0201 has become the company’s main product model, The most advanced 01005 products have also achieved mass production.  In 2018, the company made important progress among major domestic mobile phone brand customers and newly entered the supply chain of listed manufacturers.According to industry practice, there will be more sharing among manufacturers entering the supply chain in the initial stage, but if they perform well in subsequent cooperation, it is expected to steadily increase their share.The company has a long-term accumulation in the field of inductance, product quality and supply capacity to maintain first-class, has been a long-term partner of top manufacturers such as Huawei.With a consistently excellent supply capacity, we expect the company to usher in further enhancement of sharing in 2019, driving the continued healthy development of the main industry.  2019 is the first year of 5G commercial use, and large-scale base station construction will begin in the second half of 2019.Due to the continuous increase of communication coaxial, the demand for filtering will increase, and the inductance will also increase greatly.  In fact, the applicable space in mobile terminals such as mobile phones is getting smaller and smaller, and the requirements for miniaturization of inductors are getting higher and higher. We expect that the latest 01005 inductors will promote the transmission of 5G expansion and rapid penetration, which will bring the average unit price of 南宁桑拿 inductors.Promotion.The 01005 inductor is manufactured using a photolithography process, which is very different from the existing process, and the technical barriers have been greatly increased, which will ensure that manufacturers who master this process can obtain better profitability.  Profit forecast, forecasting and rating companies are the leading manufacturers in the field of chip inductors. The capacity of inductors is maintained at a high level, and the capacity will continue to increase and expand in the future.At the same time, the company actively explores new products such as electronic transformers, wireless charging, ceramic back covers, microwave devices, and PCBs. These new products have broad market prospects and are expected to help the company’s rapid growth in the future.As the company’s gross profit margin 厦门夜网 fell more than expected, we lowered the company’s EPS for 2019-2021 to 0.56/0.70/0.89 yuan (previous values were 0.66/0.81/1.00 yuan), due to the company ‘s strong 5G certainty and strong technical strength, we still maintain the company ‘s “Buy” rating.  Risk Warning: The downstream demand of the inductor is lower than expected; the downstream demand of the new product is lower than expected; the technology research and development and market expansion of the new product are lower than expected.

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