Huanxu Electronics (601231): Poor economic situation drags down 1H19 performance, concerns 5G, AIOT opportunities

23/03/2020 0 Comment

Huanxu Electronics (601231): Poor economic situation drags down 1H19 performance, concerns 5G, AIOT opportunities

In 1H19, the profit fell by 0 compared with the same period last year.

7% Huanxu Electronics announced the 1H19 earnings report: operating income of 146.

40,000 yuan, an increase of 14 in ten years.

1%; net profit attributable to mother 3.

8.9 billion, previously reversing 0.


Corresponds to the net profit of 1 in 2Q19.

6.6 billion, down 19 previously.

0%, lower than market expectations.

The main reasons for the growth of the second quarter of the year are: 1) Apple’s Apple Watch and iPhone entered the traditional off-season, and the revenue growth rate dropped; 2) The gross profit margin improved due to the climb of the Mexican factory and the poor performance of the computer and storage business.Interest rate decreased by 0.

74 ppt; 3) Costs increased by 27 during 1H19.

2%, especially the increase in management expenses, including in conjunction with 5G and other research and development expenditures, as well as the increase in personnel and expenses accrued from business expansion, but we believe that the expense ratio will gradually decline in the second half of the year.

The maximum expense ratio is expected to be basically the same as last year.

Focus on communication business: focus on share and ASP improvement.

The poor performance of Apple’s iPhone this year has brought some pressure on the communications business, but the company has gained a better position in the competition with Japanese rivals, bringing continuous increase in share. We expect it to continue in the second half of this year and next year.

At the same time, we estimate that 无锡桑拿网 the company’s ASP on the new iPhone 2H19 will increase by about 20%, mainly due to the supplementary UWB module. We expect that next year’s Apple 5G and other changes, the Asahi material number and ASP will continue to improve, but the magnitude still needs to be improved.Observed.

Consumer business: Watch the contribution, 1H20 headset will usher in a breakthrough.

Apple Watch has been growing continuously since the second quarter of this year, and continued to show strong performance in the first quarter of the first quarter from the 19th to the first quarter. We think that the momentum of the new watch from the third quarter of 19th can still be expected.

At the same time, we expect that Huanxu will make a breakthrough in the new wireless headsets in the first half of next year, bringing new growth momentum for the 佛山桑拿网 consumer business. In the medium and long term, it will also benefit from AIOT hardware capacity.

In line with the expected trend, the card is in the 5G era.

We believe that the trend of the 5G era will be reflected in mobile phones and various types of IoT devices. Huanxu is worthy of attention as a global Sip leader.

Since the beginning of this year, we have seen the company’s 5G-related R & D layout. It is backed by Sun and Moonlight. It already has a combination of baseband, RF front-end, antenna, and communication module capabilities.At Apple, the Android camp has a total opportunity to benefit.

Estimates and recommendations Considering the poor smartphone launch and the uncertainty of Sino-US trade, we cut the company’s 19 / 20e EPS by 11% / 4% to 0.


86 yuan.

The company’s current consensus corresponds to 19e P / E 21.

6 times.

Maintain Outperform rating and 17.

The target price of 00 yuan corresponds to 19e P / E 26.

6 times, compared with the current 23% upside.

Risks The volume of smartphones has declined; 5G landing has progressed less than expected; QSip penetration has fallen short of expectations.