Ou Feiguang (002456): Grasp industry development opportunities, core business revenue grows rapidly

Ou Feiguang (002456): Grasp industry development opportunities, core business revenue grows rapidly

Event Overview The company issued a 2019 performance forecast. From January 1, 2019 to December 31, 2019, the company realized a net profit attributable to shareholders of the listed company of 450 million to 60 million yuan, of which non-recurring gains and losses were attributed toThe net profit of shareholders of listed companies is expected to be RMB190 million to RMB210 million, which is mainly due to the income generated from the transfer of part of the distribution of subsidiaries.

The company’s average for the same period last year was 51,900.

830,000 yuan, during the year of 2019, the income has turned from loss to profit.

Analysis and judgment: Grasp industry development opportunities, rapid growth in core business and product revenue, single-camera to dual-camera, multi-camera module upgrades. The market size of camera modules has continued to maintain even under the background of global mobile phone replacement in recent years.Higher growth, Yole predicts 2018?
The global camera module market size will remain 9 in 2024.

The compound annual growth rate (CAGR) of 1% is expected to reach 45.7 billion US dollars by 2024. The main driver of the industry is the increasing number of cameras in products such as smartphones and automobiles.

In addition, the trend of full-screen smartphones has been determined, and the under-screen fingerprint recognition has also flourished. Mobile phones equipped with under-screen fingerprint recognition solutions have become the mainstream standard. According to IHS data, the number of global under-screen fingerprint recognition modules is expected to be 2019With over 200 million groups, it will expand and exceed 300 million groups in 2020, maintaining a growth rate of over 50%.

The company actively seized the development opportunities of the industry. In the first half of 2019, during the traditional off-season sales period, the company’s optical products achieved 41.

With a ten-year increase of 66%, biometric products have achieved 99.

79% annual growth.

In 2019, the company’s main business development trend is good, and the core business and products such as camera modules, screen fingerprint modules and lenses have achieved rapid growth in revenue and replacement volume.

Focusing on the optical track, vertical integration continues to increase added value. Due to the technological changes faced by the touch display product industry, the company’s main hanging touch products are mainly outside of the company.Squeezed the company’s business share and dragged down the company’s overall profit performance.

On November 19, 2019, the company announced that it would become a non-U.S. Major customer related touch display and touch display full lamination module and other touch display related businesses to be presented in the form of equity transfer and develop independently. This transactionAfter completion, this part of the business will no longer replace the scope of the company’s consolidated statements.

This will help the company optimize resource allocation and financial structure, improve liquidity, help the company focus on optical core business, and promote the company’s long-term development.

The company has been deploying lens business since 2017. In 2018, the company completed lens certification for some customers and achieved batch launch.

The company acquired Fuji Tianjin lens factory and Fuji Group lens related patents at the end of 2018, strengthening the company’s patent layout in the field of mobile phone lenses.

In the first half of 2019, the company’s lens products achieved operating income3.

60 ppm, of which realized operating income for customers2.

30 ppm, internal self-supplied camera module realized operating income.

3 billion.

In the future, the company will actively promote the development of the lens business, increase the lens capacity according to the order situation, strengthen the proportion of self-supplied lenses, and improve the company’s overall profitability.

The lens and module indicators have higher gross margins. Although the development of the lens business will not contribute much to the company’s overall revenue in the short term, the continuous development of the conversion lens business will have a clearer marginal contribution to the company’s overall profit.

Investment suggestion: We keep our previous profit forecast unchanged. Expected in 2019?
The company’s revenue will be 503 in 2021.

3.2 billion, 546.

6.1 billion, 611.

72 ppm, with annual growth rates of 16 each.

94%, 8.

6%, 11.

91%; net profit attributable to mothers is 5.

1.4 billion, 16.

7.2 billion, 25.

1.9 billion, with a ten-year growth rate of 199.

06%, 225.

20%, 50.

66%; corresponding EPS are 0.

19 yuan, 0.

62 yuan, 天津夜网 0.
93 yuan.

The reference PE (TTM) of Shenwan Electronics Manufacturing II Index for the past two years is about 33.
5 times, the current value is about 45 times. Considering that the company is on the optical track and the current development is stable, we will increase the PE of the company in 2020 from 33 times to 35 times, and the target price is 20.

46 increased to 21.

70 yuan, maintain “Buy” rating.

Risk warning: The volume of smartphones is not up to expectations, which will affect the company’s revenue risk; the lack of multi-shot penetration will affect the risk of company’s revenue and profit; intensified competition in the industry will cause the company’s revenue to fall short of expectations and gross marginRisk of worsening profitability due to decline; the risk that the state-owned equity investment is less than expected or will affect the company’s cash flow; the uncertainty of the macroeconomic development at home and abroad has increased in recent years, and the growth of some smart consumer electronics products has affected the company’s business.Risk.

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