Guoxing Optoelectronics (002449): The third quarter report exceeds expectations
The company released the third quarter report of 2019.
The company released the third quarter report of 2019 and achieved operating income of 25.
8 billion, down 7 every year.
71%; Realize net profit attributable to shareholders of listed companies.
1.3 billion, down 18 a year.
39%; net profit attributable to non-recurring gains and losses attributable to shareholders of listed companies2.
82 ppm, a decrease of 15 per year.
94%; basic profit return is 0.
The LED industry continued to decline, and the company’s performance was under pressure.
Due to the disorderly expansion of the LED chip industry and the impact of trade wars and other factors, the price of LED chips has continued to rise since 2018 and is still in a downward trend.
Affected by the decline in upstream chip prices and sluggish downstream demand, the prices of lighting LED packaging products have also declined.
The company owns some LED chip and white light packaging capacity, and the short-term internal performance is under pressure.
From the perspective of the same industry, some LED chip companies are too severe and have already closed factories. In the future, the rapid rise of new applications such as the conversion of Mini LED will help improve the relationship between supply and demand.
Single quarter revenue and net profit increased sequentially, leading advantages still exist.
The company achieved revenue of 9 in the third quarter.
54 billion, an increase of 34.
9%; net profit attributable to mother 1.
1.6 billion, an increase of 26.
In the industry’s down cycle, the company is still able to achieve a sequential increase in revenue and profits, which indicates that the company still maintains continuous market competition.
The company is one of the first domestic LED production companies and a leading company in the LED packaging industry with a leading position in technology and scale.
The company’s independent brand REESTAR series has been recognized by the international high-end market, and the brand effect is outstanding. We are still optimistic about the company’s long-term development.
Mini LED is still worth seeing and will continue 南京夜网 to benefit in the next two years.
Mini LED technology has progressed rapidly in the past two years, and the market has gradually released.
The company has been at the forefront of the market in the field of Mini LED, and many new customers of MiniLED backlight have been added this year. It is expected to release performance in the next two years.
In the RGB field, the company P0.
9 Mini LED display series has gained market recognition, and the company is also P0.
6 The following products and Micro LED applications carry out technology and market layout.
We are optimistic about the development prospects of the Mini LED market. The company is expected to benefit significantly from the rapid growth of the Mini LED market in the next two years.
Investment suggestion: Considering that the competitive landscape of 四川耍耍网 the LED industry has not improved, the upstream chip prices continue to fluctuate, and the downstream white light demand is weak, we lower our profit forecast for the company and change EPS from 0 to 2019.
29 is adjusted to 0.
85 and 1.
00 yuan, corresponding to 15 for PE.
1, 11.7 and 10.
Considering that the company’s performance is low this year, and it has now reached the fourth quarter, we use the 2020 performance to value the company. We believe that the company’s reasonable estimate level is 15-20 times the corresponding 2020 and the corresponding target price is 12.
07 yuan, maintain “Buy” rating.
Risk warning: the production expansion progress is less than expected; product prices continue to decline; downstream demand is less than expected.