Pengding Holdings (002938) 2018 Annual Report Comment: The gross profit margin of the world’s largest PCB manufacturer increased significantly

Pengding Holdings (002938) 2018 Annual Report Comment: The gross profit margin of the world’s largest PCB manufacturer increased 杭州夜网 significantly
The company released its 2018 annual report. The performance growth rate was in line with expectations. The profit growth rate was significantly higher than the revenue growth rate due to the improvement of profitability. The company plans to increase its revenue and profit growth by 0% -10% in 2019.The company is the world’s largest PCB manufacturer and customer’s core PCB supplier. It is expected to continue to benefit from the continued development of 5G. We maintain a “Buy” rating. Benefiting from the trend of high-density integration in mobile phones, the company’s 2018 net profit decreased by +51.7% reached 27.700 million.The company achieved revenue of 258 in 2018.5 ‰, +8 for ten years.1%, realizing net profit attributable to mother 27.7 trillion, +51 a year.7%, gross margin +5 per second.3pcs up to 23.2%, the average net interest rate +3 pcs reaches 10.7%.In terms of different industries, the company’s communication boards and consumer electronics boards accounted for 79% / 21% of revenue, respectively, with gross profit margins of 22%.4% / 26.12%, of which the gross profit margin of communications increased by 4.85, consumer electronics gross margin increased by 7.16.The company’s profit growth rate in 2018 was significantly higher than the revenue growth rate, mainly due to the increase in stand-alone ASP of PCB products such as FPC and HDI boards of the largest customer.Although it is A customer’s previous mobile phone expansion in 2018 -11 per year.7%, thanks to the increase in the use of new FPC, HDI motherboards and advanced SLP motherboards, the ASP of mobile phone PCBs has increased significantly, and the increase in the proportion of high-end products has driven the company’s gross margin growth.Benefiting from this, the company’s PCB sales increased by +1 in 2018.13% of cases still achieved high revenue and profit growth; the subsidiary Qingding Precision achieved net profit in 20186.3 trillion, +279 a year.1%, Hongqisheng, a subsidiary of mass-produced SLP in 2018, achieved net profit9.7 trillion, +107 a year.8%. Significant cost reduction and efficiency gains, and the level of automation continues to increase.The company’s automation level and maximum production capacity have been continuously improved, and the workforce has been streamlined. Until the end of 2018, the total number of employees was 35,479, which decreased by 12 each year in 2017.48%, combined with refined management, the company’s cost-side management and control performance is significant.The company’s expense ratio (including R & D) during 2018 was 9.7%, +0 per year.8pct, the three-fee expense ratio remains stable; the company continues to advance research and development innovation, consolidate its leading position in technology, and gradually invest in research and development up to 12.23 ppm, +19 a year.63%, accounting for 4% of operating income.73%. Capacity expansion has steadily advanced, and the company plans to steadily increase its revenue and profits by 0% -10% in 2019.At present, the company’s overall fundraising and investment projects are advancing steadily. The Huai’an FPC project (annual production capacity is 133).80,000 square meters) The construction of the second phase of the project has been completed, and the progress of the third phase is 74%. The Qinhuangdao HDI project (annual production capacity of 33).(40,000 square meters) The Qinhuangdao A8 and A9 factories were successfully capped. It is expected that the average progress of the expansion project will start partly in 19 years. After all the production is put into operation, the production capacity will be gradually increased by about 30%. The company won the Baoan District in early 2018.50,000 square meters of FPC industrial land started in September of the same year for the construction of the second Shenzhen plant, and is expected to start production in 2022.Looking forward to 2019, the company’s customer sales account for about 70% of mobile phone sales are still expected to be weak (we expect sales to decline -10% to -15%), but with the release of new customers in the second half of major customers and 5G replacement after 2020The tide is coming. It is expected that the company will continue to benefit from the increase in the value of the single machine driven by the increase of the internal integration of the mobile phone. The expansion of downstream non-A customers and the continuous maintenance of the automotive and industrial fields will continue.The growth rate of the company’s 合肥夜网 revenue and profit budget indicators in 2019 fell between 0% and 10%. Risk factors: Weak customer A sales, short-term PCB upgrade trend, and increased competition in the industry. Investment recommendation: Due to the weak sales volume of large customers, we lower the company’s EPS forecast for 2019/2020 to 1.30/1.43 yuan (previous forecast was 1.41/1.65 yuan), and its EPS in 2021 is predicted to be 1.54 yuan.The company is the world’s largest PCB manufacturer and customer’s core PCB supplier. It is expected to continue to benefit from 5G and continue to grow. Considering the leading premium, we give the company 25 times PE in 2019, corresponding to a target price of 32.5 yuan, maintain “Buy” rating.

Post navigation