Yihua Shares (002897) Company Comment: Results in line with expectations

Yihua Shares (002897) Company Comment: Results in line with expectations

Company announcement: The company announced the third quarter of 2019, and the first three quarters of 2019 achieved revenue of 10.

32 ppm, a ten-year increase3.

67%; net profit attributable to shareholders of listed companies was 0.

48 ppm, a decrease of 23 per year.


Performance is in line with expectations, product structure is optimized, and gross profit margin is increased.

The company achieved revenue of 10 in the first three quarters of 2019.

32 ppm, a ten-year increase3.

67%, achieve net profit attributable to mother 0.

48 ppm, a decrease of 23 per year.

At 08%, the net profit of non-attributed mothers was zero.

4 ‰, a decrease of 29 per year.

89%, with a combined gross profit margin of 25.

8%, increase by 1 every year.

99pct, an increase of 0 from the previous month.

2pct; Among them, the single quarter of 2019 Q3 achieved revenue 3.

97.6 billion, a 10-year growth of 3.

5%, achieve net profit attributable to mother 0.

22 trillion, down 20 a year.

14%, with a combined gross margin of 26.

11%, an increase of 1 per year.

92 points, down 3 from the previous quarter.

66 points.

The company’s revenue in the first three quarters has maintained steady growth, while its comprehensive gross profit margin has improved. In essence, it is the optimization of the product structure. The increase in the proportion of high-end product revenue has driven the growth of the overall gross profit margin.The increase in preliminary R & D expenses, the company’s R & D expenses and management expenses in the first three quarters of 2019 were 0.

9.5 billion and 0.

59 trillion, an increase of 70 in ten years.

02% and 29.

9%, of which R & D expenses and management expenses in the third quarter of 2019 were 0.

3.6 billion and 0.

US $ 200 million, an annual increase of 80% and 11%; the number of related expenses increased as the company’s supplementary subsidiary did not reach the breakeven, there was a period of make up, and the company’s financial expenses increased from the same period last year.

We believe that the company’s first three quarter results are in line with expectations, benefiting from the optimization of its product structure and the improvement of its comprehensive gross profit margin. At the same time, the company continues to expand its research and development investment, improve and consolidate its high-end product structure, and actively deploy new business areas.

Optimistic about the development of high-speed connectors in the 5G era, performance will usher in an inflection point.

The 5G Internet of Things era will 杭州夜网论坛 greatly increase the demand for the number of network ports driving communication equipment, and put forward higher requirements for the single-port transmission speed of connectors.

As a domestic communication connector leader, the company has the independent development advantage of precision molds. It is one of the few domestic companies to achieve mass production of high-speed connectors. It has high technical barriers and continues to expand the market with major customers. With Huawei and Foxconn,ZTE, Xiaomi, Heshuo and other big customers maintain good cooperative relations.

Affected by the decline in consumer electronics and 4G demand, the sales of low-end connectors have declined. We believe that the overall expansion into 5G construction is expected to reach the bottom of sales of low-end connectors by the end of this year. At the same time, the company actively seizes 5G applicationsOpportunity, the sales revenue of high-end 5G connectors with high gross profit margins has achieved rapid growth, the product structure has been optimized, and the company’s performance is expected to usher in an inflection point.

The business layout is perfect, and the automotive connector imagination space is large.

Since 2010, the company has successively acquired or established companies in the fields of communications, consumer electronics and automobiles with connectors as the core. At present, it has established communications connectors as the core, consumer electronics connectors as the important components, and automobiles.Other connectors are laid out for extended strategic development.

With the increase of the degree of electronicization of automobiles and the popularization of new energy vehicles, automobile connectors will achieve both volume and price increases.The company established the Automotive Connector Division in 2017. In 2018, it established a holding subsidiary, Suzhou Yuanye Automotive Technology Co., Ltd., and new products are being actively developed for trial production.

The existing company’s automotive connector business revenue is growing rapidly, but the city’s share will continue to grow. In the future, the company will expand its R & D, production, and sales expenses, and it is expected to share the dividends of the new energy automobile industry.

Investment suggestion: Yihua Co., Ltd. is a leader in the field of domestic communication connectors. Its products cover the fields of communication, consumer electronics, and automobiles. We believe that in the 5G era, product upgrades, data network ports will increase, product demand will increase, and communication connectors are expected to appear.Prices are rising at the same time. At the same time, the company’s strong R & D strength and high-quality and stable customer resources will bring new space for the company’s performance growth.

We expect the company’s net profit for 2019-2021 to be 0 respectively.

One in 7.5 billion.

08 ppm / 1.

4.5 billion, EPS is 0.

13 yuan / 0.

19 yuan / 0.

25 yuan, maintaining the “buy” rating risk warning: the risk of intensified competition in the connector market; the risk of variation in the industrial chain layout caused by international trade games; market systemic risks

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