Shengyi Technology (600183): Interim report performance exceeded expectations, PCB gross margin hit a new high
Event: On August 12, the company disclosed its semi-annual report for 2019.
In the first half of 2019, operating income was 59.
73 ppm, a ten-year increase2.
Realize net profit attributable to mother 6.
29 ppm, an increase of 18 years.
Realize net profit after deducting non-return to mother 5.
920,000 yuan, +22 for ten years.
Performance exceeded market expectations.
The traditional main business has strong bargaining power, and the gross profit margin of copper clad laminates continues to improve.
The company’s 2019 H1 copper clad laminates and incorporated films achieved revenue of 46.
390,000 yuan, at least -2.
32%, gross profit margin 22.
5G products accounted for a small proportion in the CCL business, but the gross profit margin of traditional products improved significantly.
As a leading domestic CCL manufacturer, the company has strong downstream bargaining power. Although the revenue scale has contracted slightly under the background of Sino-US trade friction, the gross profit margin even exceeded the high point of 2017.
The unit price of PCB business increased significantly, and the gross profit margin hit a new high.
The company’s 2019H1 PCB business achieved revenue 12.
55 ppm, +28 a year.
17%, gross profit margin 32.
In the second half of the year, the proportion of 5G gradually increased, and the company’s performance continued.
Among them, the company’s PCB production platform Shengyi Electronics 2019H1 achieved revenue12.
830,000 yuan, net profit1.
9.3 billion (accounting for nearly 28% of the company’s net profit), an increase of 28.
0% and 127.
Among them, Shengyi Electronics sells PCB board 43.
07 thousand cubic meters (a year -15.
46%). Based on this calculation, the unit price increased from 1967 yuan / square meter in 2018 to 2978 yuan / square meter in 2019H1.
The company’s price increased significantly, driving the gross profit margin of the PCB business to 32.
73%, reaching a historical high level in the same industry.
The performance exceeded market expectations, with significant volume in Q2.
The company’s single quarter of 2019Q2 achieved revenue of 32.3.8 billion, +18.
37% (Q1 is -9.
04%), the previous +8.
62% (-3 in the first quarter.
At the same time the company’s Q2 single quarter net profit attributable to the mother3.
79 trillion, ten years +33.
89% (+30 in the first quarter.
25% (Q1 is -0.
The net profit margin of H1 companies in 2019 is 11.
33%, an annual increase of 1.
The company’s production expansion is active, and Shengyi Electronics’ investment is accelerating.
The company’s construction in progress at the end of 2019 H1 reached 13.
At a historical high of $ 9.9 billion, Q2 added 3 in a single quarter.
US $ 3.6 billion, of which Shengyiyi Electronics’ production capacity optimization and upgrading and the third-phase expansion project of Dongcheng Plant accounted for 1/3 of the surplus under construction. The PCB production capacity expansion rate continued to increase, and it continued to benefit 5G construction.
The company is a leading replacement of 5G high-frequency and high-speed CCL localization.
Among them, the company’s high-frequency and high-speed copper-clad laminate professional production line Nantong Factory and Songshan Lake production line certification progress smoothly, leading production capacity, and actively participate in domestic core equipment vendors 5G experiments and product material design process.
At the same time, it is a high-quality PCB asset, such as Yi Electronics, and leading companies such as Shennan and Hudian, are listed as 5G 杭州桑拿 RF core PCB suppliers.
Investment advice: We expect the company in 2019?
Income in 2021 will be 134.
4.3 billion (+12.
780,000 yuan (+19.
55 ppm (+ 21%), the net profit attributable to shareholders of the listed company was 12.
900 million (+29.
6.7 billion (+29.
9.2 billion (+25.
5%), the corresponding EPS is 0.
57 yuan, 0.
73 yuan, 0.
92 yuan, corresponding to PE is 39 times, 30 times, 24 times.
Based on the company’s future development expectations driven by 5G, we give Shengyi Technology a reasonable estimate of 35 times the dynamic PE in 2020, with a 6-month target price of 25.
55 yuan, maintain “Buy-A” investment rating.
Risk reminder: The impact of Sino-US trade friction on market growth and change, and the proportion of 5G revenue 北京养生 continues.