Anjie Technology (002635): Shixin and Weibo underperform expectations below 1H19
1H19 results were lower than our expected 1H19 results: Revenue 13.
86 ppm, with a ten-year average of 5.
5%; net profit attributable to mother 1.
78 ‰, 25 years ago.
1%, lower than our expectations.
Corresponding to 2Q19 single quarter revenue7.
18 ppm, a decrease of 15 per year.
4%; net profit may increase by 15.63 million yuan, a year back 111.
In terms of the company’s three major businesses, Shixin and Weibo’s poor performance are the essence of the 1H19 downturn: 1) The parent company (precision functional parts business) has grown steadily: revenue 5.
20,000 yuan, an increase of 18 in ten years.
0%, gross margin 33.
2%, up 4 every week.
6 成都桑拿网 o’clock.
2) Shixin (hard disk and automotive electronics) was dragged down by the hard disk business: revenue 3.
9 ‰, 18 years ago.
4%; gross profit margin 20.
4%, around ten years.
The 5 percentage point was mainly due to the poor hard disk market. The new hard customer Seagate ‘s hard disk metal parts order tray, but the cost reduction was limited, resulting in both revenue and profit margins.
3) Weibo Precision (consumer electronics metal parts) is still sluggish: Revenue 4.
3 ppm, 10-year average of 13.
9%; gross margin of 13.
1%, down 16 in ten years.
Weibo’s poor performance is still affected by the poor performance of the mobile phone metal parts market, and even the 3D hot press case has a good performance, but it is still difficult to offset the downward impact of metal parts.
At the same time, the company’s increased inventory processing speed also significantly affected the level of profitability.
Development trend Precision function parts are expected to benefit from the 5G trend: Anjie is one of the main suppliers of precision function parts for brands such as Apple and Huawei.
With the promotion of 5G mobile phones, Anjie will benefit from the increasing demand for heat dissipation and shielding in 5G mobile phones.
Next year, Apple will also usher in a big year of innovation represented by 5G, with increased functions and internal design changes that will help increase the value of precision functional parts.
Earnings Forecasts and Estimates Due to the poor performance of Sun Shine and Weibo Precision, we cut 19 / 20e EPS 31% / 27% to 0.
The current contradiction corresponds to 19 years 17.
7 times price-earnings ratio.
However, considering the overall boom in the electronics industry and the comparable company’s estimates moving upwards, we maintain our Outperform rating and 21.
00 yuan target price, corresponding to 19e 25.
The price-earnings ratio is 6 times, which has 45% upside compared with the current one.
Risks Smartphones go down remotely; hard drive demand is poor.