Huazheng New Material (603186) 2019 Interim Report Review: Q2 Performance Increases, 5G Drives Future Development
Event: The company announced its semi-annual report for 2019.
The company achieved revenue 9 in the first half of 2019.
2.7 billion, an annual increase of 20.
50%, achieve net profit attributable to mother 0.
4.6 billion, an annual increase of 47.
22%, net profit after deduction is 0.
$ 3.8 billion, an increase of 44 per year.
Opinion: The business operation is stable, and Q2 performance accelerates.
The company’s main products include copper-clad laminates, thermoplastic honeycomb panels, insulation materials and resonance materials, etc. Among them, copper-clad laminate materials have achieved revenue for 11 years.
0.6 billion, accounting for about 66% of revenue.
In the first half of this year, the company’s operations continued to remain stable, with revenue and profits both increasing, and Q2 performance increased significantly: the company’s revenue in the first half increased.
50%, corresponding to Q2 revenue scale of 4.
US $ 9.6 billion, the highest level of single-quarter revenue since the company was founded, with an annual 北京夜网 growth rate of 23.
90%, an increase of 15 from the previous month.
08%; the company’s net profit attributable to mothers increased by 47 in the first half of the year.
22%, corresponding to Q2 net profit attributable to mother is 0.
310,000 yuan, an annual increase of 56.
50%, a 106% increase from the previous month.
The product structure has improved and profitability has increased.
The product structure of the company’s copper-clad laminates was optimized. The sales of high-value-added products such as prepregs, high-layer copper-clad laminates, and lead-free copper-clad laminates increased, driving the company’s profitability.
The company’s gross profit margin for 19H1 was 19.
28%, a year up 0.
98pct, of which Q2 single quarter gross margin is 20.
66%; 19H1 net profit is 5.
04%, a year increase 杭州桑拿网 of 0.
98pct, of which Q2 single quarter net interest rate is 6.
In the first half of this year, the company’s gross profit margin and net profit margin increased compared with the same period of the previous year. Among them, Q2’s single quarter gross profit and net profit level have been at a high for nearly two consecutive years, and its profitability has been significantly enhanced.
5G is driving demand for high-speed and high-frequency copper-clad laminates and is optimistic about the company’s second-half performance.
5G technical characteristics require higher performance components. The upgrade of wireless communication base stations, CPE, data communication and storage equipment and hardware brings new technical requirements and elastic demand to the copper clad laminate industry. High-speed coverage copper plates are expected to increase in volume and price.
In June this year, the Ministry of Industry and Information Technology released the 5G commercial snapshot logo and officially entered the first year of 5G business. The license issuance time is actually earlier than market expectations, indicating that the domestic 5G construction is accelerating.
Therefore, it is expected that the proportion of the company’s high-speed modernized CCL business will further increase in the second half of the year, optimistic about the company’s performance.
Earnings forecasts and investment advice.
The demand for high value-added copper-clad laminates for 5G construction will increase, and the company is expected to fully benefit.
The company’s EPS for 2019-2020 is expected to be 1.
00 yuan, 1.36 yuan, corresponding to PE and 36 times and 26 times respectively, maintaining the “cautious recommendation” level.
Risk warning: 5G is not progressing as expected, and industry competition is intensifying.