Sunlord Electronics (002138): First-quarter results exceed expectations 5G opens a new round of growth space

Sunlord Electronics (002138): First-quarter results exceed expectations 5G opens a new round of growth space
The event company released the 2019 first quarter report: 19Q1 achieved revenue 5.4 billion, an increase of 11% over the same period, net profit attributable to mothers is 83.9 million, every 18%, net profit attributable to non-mothers is 78.27 million, an increase of more than 6%. Brief comment on the first quarter deducted non-net profit increased by more than 6%, exceeding the expected 19Q1 income5.400 million, an annual increase of 10%, a decrease of 11% from the previous month, a decrease in net profit of 18%, a decrease of 28% from the previous month, and a net return of non-return to mothers increased by more than 6%, an increase of 53% from the previous month.The year-on-year decrease in net profit in 19Q1 was mainly due to the distribution and transfer of net income of approximately 25.5 million in 18Q1 by companies with a surplus of shares.19Q1 gross margin increased by 3 from the previous month.79 pct, increased by 1 each year.47 pcts reached 34.78%, the proportion of sales of major high-margin products increased, new products such as small-size stacks and high-power 西安耍耍网 high-Q products, power inductors were in demand and supply, and the price and gross profit margin of ceramics for wearable devices were also better. In 19Q1, the operating net interest rate decreased steadily from the previous month, and performance entered an upward channel.In 19Q1, revenue decreased by 11% month-on-month, and the decrease in non-net interest rate decreased slightly.59 pcts reached 14.37%.Net interest rate decreased by 3 from the previous quarter.49 pct. Considering that Dongguan Xinbai’s unfulfilled performance commitments in 18 years, there is no need to pay the remaining collection subsidy of approximately 57.6 million, which is included in the non-operating income of the 18Q4 income statement. After the replacement effect, the net profit in 19Q1 increased by approximately 5 from the 18Q4.The percentage increase is due to the optimization of sales expenses in 19Q1, a 21% decrease from the previous month and an increase of 9% each year.At the same time, due to the recovery of order demand, some of the impaired inventory was disposed of, and the asset impairment loss in 19Q1 decreased by 18 million from the previous quarter.In 1Q1, the company continued to increase capital expenditures in major business areas, wages and R & D expenses increased, and the total R & D expenses and management expenses increased by approximately 29% from the previous month.Looking forward to Q2, the boom in demand in the communications and communications sector continues. In the second half of the year, the volume of orders for 5G base stations and the demand for 5G mobile phones will gradually increase, and the performance is expected to improve quarter by quarter. The increase in bills receivable affects operating cash flow. The accounting period and inventory management are stable. 19Q1 The net operating cash flow decreased by 62%. The cash received from sales of goods and labor services decreased by 16%.The year-on-year increase in the same period in the morning was mainly due to the increase in bills receivable in the current period and the prolongation of the bill acceptance cycle of some customers, but the accounting period control remained stable.Inventory increased by 19% compared with the end of the first 18Q1. It is judged that the current period is mainly due to the strong demand for base station products such as high-power inductors and increased stocking. Benefiting from the growth in demand for 5G base stations and mobile phones, the initial new product reserve has entered the harvesting terminal side. The company’s 01005 small-sized precision RF inductors and integrated power inductors benefit from the gradual increase in demand for 5G terminals; wearable, medical monitoring and other electronic terminals and other emerging consumer electronicsDemand for precision ceramic products is strong, and sales are expected to continue to grow.Base station side: 5G base stations use high-performance inductors, high-power inductors, filters, switches, and other products. The demand for single-board products has increased. The company’s technology has accumulated for many years, and the market space for new products has further opened. Expansion of automotive electronics category is expected to continue rapid growthMaintain rapid, sustainable, and rapid growth throughout the year. Earnings forecast and rating It is estimated that the company’s net profit attributable to the parent in 2019-2021 will be 5 respectively.65, 7.06, 9.3.8 billion, eps are 0.70, 0.87, 1.At 16 yuan / share, the current corresponding PE is expected to be 29, 23, and 18X, respectively, and the target price for 2019 is 35 X PE.34 yuan / share, maintain BUY rating. Risks suggest that 5G commercial use fails to meet expectations, mass production of new products falls short of expectations, and capacity expansion progress falls short of expectations.