Event

The company releases its 2018 semi-annual report

In the first half of 2018, the company achieved sales revenue of 400 million yuan (+ 69%) and net profit of 54.96 million (+ 70%), belonging to 39.55 million of the owner's net profit of the parent company (+ 161%). In the second quarter, the income in a single quarter was 279 million yuan (+ 94%), and the net profit was 36 million (+ 515%).

Brief comment

Gradual recognition of revenue from wireless charging equipment

The significant increase in revenue and profits in the first half of 2018 was mainly due to the mass production of wireless charging devices at the receiving end of customer A mobile phones, which had delivered 365 units and accepted 90 as of June 30. The remaining 275 units delivered will be gradually confirmed with the downstream customer production scheduling and the company's commissioning progress, and the corresponding order amount is about 270 million yuan (including tax).

Technology is scarce and profit margin is high.

We estimate that the gross profit margin of this batch of wireless charging equipment is about 45%. The company is the exclusive supplier of A customer wireless charging winding machines, with strong scarcity of technology and providing customized solutions. We expect that with the penetration of wireless charging in multi-brands and fields, the company's profit margin can be maintained at a high level, and the products are expected to expand to more categories.

Profit forecast and valuation

It is estimated that the EPS of the company in 18-20 will be 1.1Comp1.5 and 2.3RMB, and the PE in 18-20 will be as much as that in 24-17-11. According to the 2018 PE of 30 times, the target price of 33 yuan, maintain the overweight rating.