Electro-acoustic manufacturing leading enterprises, the global layout system is perfect. 1) Yingtong Communication is a leading advanced manufacturing enterprise specializing in the R & D, production and sales of acoustic products, data lines and other products. In the middle reaches of the electro-acoustic components industry, there are mainly three categories: acoustic products, data lines and other products, and processing business. 2) the products are widely used in various types of intelligent terminal products, digital audio and video electronic products and other consumer electronic products, with mainstream high-quality customers such as Gale shares, Taiwan Hon Hai, Fengda Motor, Meilu Industrial, Zhengwei, Jepp Group, etc., the terminal brand customers are mainly Apple Inc, the performance is growing steadily, and the industry is firmly transformed and upgraded. 1) the company's revenue is closely related to Apple Inc's mobile phone sales, and its main business is growing steadily. The CAGR of 2014-2018 revenue is 7.79%. In 2018, the company's acoustic product sales continued to increase, with revenue of 902 million yuan, an increase of 25.01% over the same period last year. 2) Industrial transformation and upgrading is in a critical stage and is expected to accelerate to enter the performance inflection point. The net profit CAGR of 2014-2018 is-13.98%. Due to the increase in main raw materials / labor costs, losses in India Yingtong, and more investment in product transformation and upgrading, the 18-year net profit is 65.2895 million yuan, down 23.89% from the same period last year. 17-year gross profit margin is 30.42%, down 2.29% from the same period last year, and the net profit rate is 11.7%, down 5.5% from the same period last year. 3) continue to invest in R & D and strengthen industrial transformation and upgrading. As the company's acoustics products are mainly headphone wires, headphone semi-finished products and other low-end products, gross profit margin is the most affected in the year-on-year company, transformation and upgrading is inevitable. Spending on R & D in 2017 was 40.19 million yuan, an increase of 36.25% over the same period last year. The Intelligent products Division was established in 2018, and R & D expenditure is expected to further increase. 4) raise investment in new production capacity, and the scale effect will be enhanced. The company listed and invested in four major projects in 17 years, and replaced self-construction through acquisitions in 18 years (terminating two of them) to accelerate the realization of economic benefits, speed up the release of production capacity, and enjoy large-scale effects.
"big acoustics, big transmission" the future development of the new layout, equity incentives show strong confidence. New momentum opens new growth space: 1) mature price decline of industrial chain + non-porous trend + potential many application scenarios continue to promote the penetration of TWS headphones, which is expected to become a standard mobile phone in the future, and the demand for related electro-acoustic components will increase significantly. 2) Smart speakers have high import value. In 2018, the total number of global shipments reached 86.2 million units, an increase of 169% over the same period last year, with a large permeability space, and the number of electroacoustic devices on a single machine is twice as large as that of smart phones. drive the demand for speakers and microphones to further increase; 3) the competitive industry pattern of acoustic components is clear, and the company actively promotes the vertical integration of the industrial chain, and the extension of downstream is expected to further cultivate customers in the future. With the acquisition of Lianyun Acoustics in 18 years, its performance bet is that the net profit of deducting non-consolidated statements from 2019 to 2021 is not less than 1700, 2150 and 24 million yuan; 4) the equity incentive is bound to the core backbone, and the performance assessment is based on 2018, with net profit growth rates of not less than 46%, 63%, 77% and 90% respectively from 2019 to 2022.
Investment suggestion: it is predicted that the company's revenue from 2018 to 2020 is RMB 9.02 billion, EPS is 0.53 and 0.81, respectively. The average PE of comparable companies in 2019 is 27.87x, reaching electroacoustic 2019PE=35.2x, and giving the company PE=35x in 2019, corresponding to the target price of 28.35yuan, covering for the first time and giving a "buy" rating.
Risk hints: M & An integration is not as expected, R & D process is slow, raw material prices continue to rise, exchange rate fluctuation risk
