Sunlord Electronics (002138) Company Express: Performance is slightly lower than expected. Inductor leading multi-domain expansion fully benefits 5G

Sunlord Electronics (002138) Company Express: Performance is slightly lower than expected. Inductor leading multi-domain expansion fully benefits 5G
Event: Company 19 H1 achieved total operating revenue of 12.1.7 billion, an annual increase of 7.77%, net profit attributable to mother 1.9.5 billion, down 13 each year.8%, net profit after deduction to mother 1.82 ppm, a decrease of 4 per year.95%.Among them, total operating income for the second quarter of 20196.72 ppm, a five-year increase of 5.5%, an increase of 23 from the previous month.52%; deducted non-attributed net profit1.3.0 billion, a year-on-year decrease of 12% and a month-on-month increase of 24.46%. Expenses increased, exchange losses, investment income decreased, short-term performance in the first half of 19 was slightly lower than expected.In terms of gross profit margin, the company’s gross profit margin in 19H1 was 35.26%, gross margin was 35 in the second quarter.65%, the average increase slightly, the core product profitability level is stable.From the perspective of expenses, the company’s H1 sales expenses for 19 years were +6 for half a year.61%, ten years of management expenses +10.97%, R & D expenses +39 per year.14%, financial expenses 3.96 million yuan (the same period last year-1.82 million yuan).In terms of other income, the exchange gain was -6.64 million yuan (5.35 million yuan in the same period last year), and the investment income was -1.16 million yuan (28.54 million yuan in the 南宁桑拿 same period last year, mainly due to the disposable income from the transfer of equity participation companies).Excluding the impact of equity transfer gains and the decrease in earnings caused by exchange rate changes, profits in the first half of 2019 were basically the same as last year. Continuous research and development in various fields, inductive products expand application fields and non-inductive products open the market.The company is currently in continuous research and development in automotive electronics, filters, magnetic materials, sensors, high-end precision inductors, precision ceramics and other fields.92%, increase by 1 every year.56ppt, we believe that the supplement of expenses reflects the company’s active development strategy.Inductive products have expanded from traditional mobile phones and communications 都市夜网 to military industry, automotive electronics, such as automotive electronics, transformers began to be supplied in large quantities to Bosch, and new products are tested in small batches at TESLA. It is expected that the volume will be 2-3 years.The market’s awareness and acceptance continue to increase, and it is expected to gain opportunities for rapid growth in the future market.Non-inductive products have been cultivated for many years. For example, ceramic materials will increase the penetration rate of base station filters and smart wear, and are expected to gain rapid growth opportunities in the future market. 5G drives long-term development of communications and terminal services.In terms of base stations, the microwave devices specially developed for 5G base stations have gradually been recognized by international manufacturers and gradually realized sales. The second half of the year will continue to expand the development and marketing of new products in the 5G market.In terms of terminals, the demand for high-end precision inductors for 5G mobile phones and IoT terminals will greatly increase. The company’s new 01005 inductors can be mass-produced and double the production capacity. They have been sending samples in small batches through the Skyworks RF module end, and gradually through the original customer and expansionThe penetration rate of new customers in the terminal market continues to increase. Investment suggestion: Considering that the company is fully benefiting from the 5G inductor volume and price rising trend, the non-inductor field continues to break through, and the performance improvement is better, we predict that the company’s EPS in 2019-2021 will be 0.63/0.78/0.98 yuan, the corresponding PE is 36.5/29.4/23.5x, upgrade company rating to: Buy-B. Risk warning: Consumer electronics demand recovery is less than expected; 5G construction progress is less than expected risk; new product / new customer expansion is less than expected;