Hudian shares (002463): High-growth Q3 performance forecast in the first half of the year exceeds expectations 5G high-frequency PCB leader can grow

Event: On August 28, (1) the company released the semi-annual report for 2019, and achieved operating income of 31 in the first half of 2019.

22 ppm, an increase of 26 in ten years.

72%, net profit attributable to mothers4.

780,000 yuan, an increase of 143 in ten years.

40%, net profit after deduction is 4

530,000 yuan, an increase of 168 in ten years.

16%.

Net profit attributable to mothers falls in the performance forecast center (4.

4?
500 million), in line with market expectations.

(2) The company disclosed the performance forecast for January 9, 2019. It is expected to realize net profit attributable to mothers 8?
900 million yuan, an increase of 108.

76%?
134.

86%.

It is expected that net profit attributable to mothers will be achieved in the third quarter of 2019.

twenty two?
4.

22 ppm, a 72-year increase of 72.

29%?
125.

87%, an increase of 1 from the previous quarter.

90%?
33.

54%.

In terms of products, the high growth rate of revenue in the first half of the year mainly comes from communication boards. The contribution of 5G products is expected to start on a large scale from Q3: (1) The communication board achieved operating income in the first half of the year21.

09 million yuan, an increase of 36 in ten years.

58%, a record high growth rate (the highest growth rate since 2011 is 18%), the first is that both data communication and wireless arrows hit.

High-end, increased network traffic drives demand for high-speed boards such as servers and switches; expansion, 4G deep expansion and 5G initial construction drive demand for substrate PCBs.

(2) In the first half of the year, the automobile board realized operating income6.

5.9 billion, down slightly by 2.

75% is basically the increase in car sales in the first half.

In terms of quarters, the high growth in the first half of the year mainly came from Q2, and Q3 is expected to maintain the growth momentum: (1) Q2 achieved operating income in a single quarter.

590,000 yuan, an increase of 35 in ten years.

86% (Q1 half-year increase of 16.

61%), an increase of 29.
.

05%; net profit attributable to mother 3.
16 ppm, an increase of 150 in ten years.

02% (Q1 half-year growth of 131.

47%), an increase of 95.

06%.

(2) It is expected that net profit attributable to mothers will be achieved in Q3 of 20193.

twenty two?
4.

22 ppm, a 72-year increase of 72.
29%?
125.

87%, an increase of 1 from the previous quarter.

90%?
33.

54%.

Enhance product structure upgrade and quality control, increase gross profit margin7.

66pct: In the first half of the year, the overall gross profit margin was 29.

20%, an increase of 7 per year.

66 points.

Among them, the gross profit margin of the communication board is 31.

58%, an increase of 9 per year.

74pct, mainly benefiting from the improvement of the product structure, the company integrated the production resources of Qingying Plant and Huangshi No. 1 Plant, and appropriately expanded the production capacity of high-end products through technological transformation; the gross profit margin of automotive panels was 24.

88%, an increase of 1 each year.

93pct. Against the background of the sluggish overall demand for automotive boards, the company’s gross profit margin improvement has mainly been in the improvement of production efficiency and quality, while benefiting from the emergence of demand for high-end boards such as ADAS, the company continues to promote the upgrade of its product structure.

Huli Microelectronics ‘performance has grown steadily, Huangshi Hushi has turned losses into profit, and Huangshi Phase II is expected to be converted to trial production in September: (1) Huli Microelectronics’ revenue in the first half of the year remained 重庆耍耍网 calm due to the decline in demand for automotive panels and prices(7.

89 ‰, at least -1.

49%), but the improvement of product structure promotes the increase of gross profit margin and net profit margin (realizing net profit1).

40,000 yuan, ten years +9.

twenty four%).

(2) Huangshi Hushi continued to improve margins, and the communication board of the first plant maintained high growth in the first half of the year (realizing revenue of 3.

78 ppm, +31 for ten years.

01%; net profit of 24.65 million yuan, repeated 1276 in the same period last year.

950,000 yuan), the second auto plate is expected to be put into trial production in September 2019.

With the 5G license in place, we are optimistic about the 5G domestic alternatives in China: in the 5G era, the demand for high-frequency (antenna) and high-speed (IDC / base station) PCBs is expected to increase.

Since 2018, the company’s Qingying Plant and Huangshi No. 1 Plant have significantly increased their production flexibility, and are preparing for 5G network construction.

Investment advice: We expect the company in 2019?
Income in 2021 will be 78.

8.8 billion (+43.

5%), 101.

500,000 yuan (+28.

7%), 123.
8.9 billion (+22.

1%), the net profit attributable to shareholders of the listed company is 12 respectively.

1.3 billion (+112.

6%), 15.

09 billion (+24.

4%), 18.

7 billion (+23.

9%), the corresponding EPS is 0.

70 yuan, 0.

87 yuan, 1.

08 yuan, corresponding PE is 28 times, 23 times, 18 times.
Based on the company’s future development expectations driven by 5G, we give Shanghai Electric Power a reasonable estimate of 30 times the dynamic PE in 2020, with a 6-month target price of 26.

1 yuan, maintain “Buy-A” investment rating.