Hudian shares (002463): 5G boom results continue to exceed expectations

Hudian shares (002463): 5G boom results continue to exceed expectations

Investment Highlights Performance Summary: The company achieved operating income in the first half of 201931.

2 ten percent, an annual increase of 26.

7%; net profit attributable to mother 4.

80,000 yuan, an increase of 143 in ten years.


  The performance is in line with expectations, and the guidance for the third quarter exceeded expectations: actual results are reported in the interim report (4.

400-500 million), while forecasting the first three quarters of 800-900 million results, an increase of 109-135% over the same period, the third quarter profit.


200 million, Q2 continued to improve.

The company’s Q2 revenue was 17.

6 billion, an annual increase of 35.

9%, a significant acceleration over the previous quarter, with a net profit of 3.

200 million, an annual increase of 150%, driven by strong demand for communications boards and an increase in the proportion of high-end products, gross profit margins have increased significantly. It is expected that 5G construction will accelerate, and revenue will continue to increase sequentially.

  The demand for 杭州桑拿 communication boards is soaring, and 5G contributes to the improvement of gross profit margin: The company ‘s 4G communication boards continued to exceed the expected displacement due to substrate expansion, with revenue of 2.1 billion in 19H1, an annual increase of 36.

At 6%, the company adjusted its product structure as the production capacity approached full capacity. The proportion of high-end board expansion continued to increase. The acceleration of 5G migration in the first half of 19 increased the gross profit margin to 31.


At present, 5G is still in the initial stage of construction, and the corresponding communication board is expected to account for only 20%. The space for structural improvement can still be expanded, and the gross profit margin is still expected to increase.

The first-stage production capacity of Huangshi climbed smoothly. Through the introduction of equipment to make up for it, the monthly output value reached 100 million at the end of 19, and the long-term target reach2.

5 billion.

The Qingsong plant’s sewage discharge capacity was expanded, the capacity expansion was promoted to accelerate, and the monthly output value of long-term planning was reachable.

500 million, effectively meeting the strong demand for communication boards.

  Auto plate demand is stable: 19H1 revenue6.

6 billion US dollars, a slight decline each year, gross profit margin of 24.

9%, increase by 1 every year.

9 points, mainly driven by the increase in the demand boom of market segments such as ADAS. At the same time, the company is actively exploring new energy vehicle customers. The Huangshi No. 2 Plant is expected to start production at the end of 19th, and gradually resume steady growth through the recovery of the automotive industry.

  Management continued to improve, and the expense ratio decreased to increase profitability: the sales ratio / management expense ratio / financial expense ratio / research and development expenditure ratios in 19H1 were 3 respectively.

3% / 2.

1% / 0.

twenty four.

6% change every year (0.

6) / 0 / (0.

2) / 0.

1 percentage point, the improvement of the rate was mainly due to the improvement of the management of the new Huangshi plant and the increase in the utilization rate of capacity. In Q2, the net interest rate in the single quarter reached 18%, which was earlier in Q1.

A significant increase of 9%, a record high.

  Earnings forecasts and investment advice.

Based on the strong demand for the company’s communications board and better-than-expected product structure improvement, the company’s performance forecast for 2019-2021 was raised, and its profit attributable to the mother was 12 in 19-21.

8 billion, 18.

200 million, 24.5 billion, corresponding to PE of 26x, 18x and 14x, with reference to comparable companies’ average 2020 estimates of 27 times, with a target price of 28.

62 yuan, raised to “Buy” rating.

  Risk reminder: 5G construction progress is less than expected, the risk of large fluctuations in raw material prices, and the risk of capacity climbing progress is less than expected.