Events:
The company released its 2018 results KuaiBao on February 27. Its operating income in 2018 was 17.317 billion yuan, up 14.60% over the same period last year; the total profit was 1.507 billion yuan, up 11.57% over the same period last year; and the net profit returned to its mother was 1.372 billion yuan, up 16.30% over the same period last year.
Comments:
The whole industry chain layout, the product line is complete, the cost leading advantage is obvious. Helitai is a leading one-stop supplier of intelligent terminal core components in China. The company has the advantages of the whole industry chain of materials and modules, and has strong industrial integration and market competitiveness. Relying on the "1N1" customer cooperation mode, the product line has been expanded to a variety of intelligent terminal core modules, such as comprehensive screen module, touch screen module, fingerprint identification module and camera module. At the same time, the company actively integrates vertically to the upper reaches of the industrial chain, and realizes the internal supply of some important components and raw materials, such as FPC and soft-hard plywood for all kinds of modules. Investment in R & D continues to increase, creating technical barriers to materials. The company continues to increase investment in research and development of materials technology, to create a perfect layout of the whole industry chain, to meet customers' needs for high and new technology and future science and technology, in order to realize the localization of high-end materials. At present, the company's wireless charging, EMI materials and other 5G materials, FPC industry layout in advance, will continue to maintain a dominant position in the traditional module industry. The core competitive advantage of the company is obvious, and the future performance can be expected.
The prospect of FPC industry is promising, and the company leads the industry in business technology and production capacity. The FPC industry as a whole has maintained a rapid growth rate, the global production capacity has accelerated the transfer to Chinese mainland, and the company is in an industry leading position in terms of FPC technology and production capacity. Since 2015, the company began to expand production and plus FPC, and has invested and built production capacity in Shenzhen, Wanan, Xinfeng and other places. The company is a domestic leader in terms of production capacity and fully meets the future high demand for capacity support. At the same time, the company strengthens the product process and R & D capability of FPC by introducing a professional Taiwan team, which has been providing services to international customers. Combined with the company's technology, equipment and process capabilities, the company has been providing products and services to important customers around the world.
Maintain a "buy" rating. The company has the dominant position of traditional modules in the industry and the development prospect of 5G related materials business. With the approach of 5G era, we are optimistic about the performance growth of the company as the industry leader and the depth and breadth of the company's related business layout. It is estimated that the company's EPS from 2018 to 2020 will be 0.44x5x0.65 yuan respectively, maintaining the "buy" rating.
Risk tips: wireless charging and other new business promotion progress is not as expected, downstream market fluctuations