share_log

东江集团控股(2283.HK):淡季不淡 注塑业务增长强劲

光大證券 ·  Aug 18, 2015 00:00  · Researches

Comment: The first half of the year recorded impressive growth in both revenue and profit. The company recorded revenue of 734 million yuan (HK$, same below) during the period, an increase of 38.8% over the previous year. The increase in revenue was mainly due to the injection molding component business, which increased 64% to 489 million yuan from 298 million yuan in the first half of last year; gross profit margin of 184 million yuan, with a gross profit margin of 25%, a slight decline of 0.6 percentage points, mainly due to a decline in overall gross margin in the first half of the year due to the depreciation of the euro by 4.56 percentage points. Earnings per share were 8.6 HK cents, and the company declared an interim dividend of 3 HK cents per share, with a dividend rate of 34%. Thanks to product structure adjustments and increased production capacity, the injection molding business increased 64% year over year in the first half of the year. The company adapts to the development of the times and actively explores segments with potential for growth. Although the first half of the year was a traditional low season, the injection molding business recorded a high growth rate of 64%. Among them, mobile phones and wearable devices increased 57.2% year over year to 176 million yuan, accounting for 24% of total revenue, becoming the single largest source of revenue, while medical and personal care revenue was 96 million yuan, up 1.43 times year on year. Traditional strong commercial communication devices also recorded a 93% increase in half a year to 168 million yuan. We believe that the company's downstream customers are world-renowned enterprises in various segments, with strong product competitiveness and great potential for future growth, and that the company accurately grasps the trends of the times and actively explores new fields with a lot of room for growth, such as new markets such as smart homes and drones. The mold business is growing steadily, and orders are full throughout the year. In the first half of the year, the mold business rose 6.34% year on year to 268 million yuan, accounting for 35.4% of total revenue. The gross margin of the sector fell 4.56 percentage points to 25.8%, mainly because the company's mold business was mainly automotive molds. The market was in Europe, which was affected by the continued depreciation of the euro since last year. Coupled with the commencement of production at the end of last year, equipment depreciation increased. In terms of mold orders, there are currently 600 million orders in hand, and orders are basically saturated throughout the year. Growth is expected to continue in the second half of the year, and is expected to remain above 30% throughout the year. The company's future development will focus on the three fields of mobile phones and wearable devices, medical and personal care, and automobiles. Among them, smart phones have maintained strong growth (over 30%), wearable devices such as Fibit and Gopro are expected to double throughout 2015, smart watches are also about to be mass-produced, and Philips' electric shavers are also expected to double throughout 2015, while new automobile production capacity will be released in the second half of the year. In addition to this, the company is also actively developing new fields that are expected to explode in the future, such as smart homes and drones, adding impetus to the continued growth of the business. In order to hedge against the risk of foreign exchange depreciation, the company also borrowed the same amount of euro debt as the order. The company's income is basically denominated in US dollars, euros, and Hong Kong dollars, and the depreciation of the RMB is beneficial to the company.

The translation is provided by third-party software.


The above content is for informational or educational purposes only and does not constitute any investment advice related to Futu. Although we strive to ensure the truthfulness, accuracy, and originality of all such content, we cannot guarantee it.
    Write a comment