Revenue and net profit are growing rapidly, and gross profit margin continues to rise.
The company released a report for the first quarter of 2018, with revenue of 290 million yuan during the reporting period, an increase of 211% over the same period last year, and a net profit of 87.93 million yuan, an increase of 403% over the same period last year. The gross profit margin was 48.45%, 6.99% higher than the same period last year, 3.23% higher than the previous year; the net profit margin was 29.82%, 11.38% higher than the same period last year, and 1.72% higher than the previous year.
The thinning process of diamond thread is accelerated, seizing the peak of quality, production capacity and yield.
The company's 17 annuity rigid line sales reached 2.19 million km, and the 17-year gross profit margin reached 56.21%, higher than that of its counterparts in the industry. We judge that the diamond line is still the main contribution in the first quarter, and the 18-year gross profit margin and revenue growth can still be maintained at a high level. First, we think that the price of 18 annuity rigid line will not plummet: the cost proportion of diamond wire in silicon wafer is only about 8%, and the demand of downstream photovoltaic enterprises for thin wire, full disk rate, cutting rate and less thread mark is greater than the price demand. at present, it has not yet reached the stage of technical stereotyping and price war, and the company has obvious advantages in thinning. At present, it has produced 65um products on a large scale and constantly switched to 60um products. For each fine wire diameter, the unit price will be increased by 10% and 15%. The second company continues to expand production and technological transformation efficiently for 18 years, and is expected to reach an annual production capacity of more than 8 million kilometers. Third, we expect the company's production yield to reach more than 95% in 18 years, and continue to reduce costs through meticulous management and large-scale production.
Ultra-fine electronic wire rod is in the lead, benefiting from the development of wireless charging.
The company's initial products ultra-fine conductors, film line customers include Lixun, Gore, Japan Sumitomo and other well-known enterprises, the strength of the world's leading. Through material improvement and quality improvement, the supply share and unit price of the company's conductors and laminated lines to major customers in 18 years are expected to further increase. In addition, we expect that customer A's 18-year new model will continue to be equipped with wireless charging, and the coil scheme will be adopted, and the FPC scheme will be phased out. The company only supplies iWatch wireless charging coil, and is cooperating with A customer's mobile phone wireless charging coil solution research and development, at the same time, it is also expanding to supporting magnetic materials, the company will deeply benefit from the improvement of wireless charging permeability and technology upgrading.
The explosion of battery polar relay is expected to open up a new blue ocean in the field of new energy.
Soft-package lithium battery has the advantages of lightweight and high safety performance. at present, the permeability in the field of power battery is only about 10%, and the growth space is huge. It is expected that the demand will reach 67GW in 2020, and the market size is expected to exceed 50 billion. With its accumulation in the field of materials, Tony has submitted a number of downstream customers for testing and started supplying the extreme ear market of soft bag batteries with a precise layout. At present, the production capacity is 60 million pairs and the unit price is 5 yuan per pair. The business is expected to start volume in 18 or 19 years, and with economies of scale and yield improving, it is expected to contribute more than 100 million revenue in 18 years, and gross profit margin is expected to increase from 14% in 17 years to more than 40%. It will become the next performance flashpoint.
Excellent R & D strength and sufficient reserves for new projects
The company's laboratories in Taiwan and Japan have been launched, and two offices in the United States and South Korea have been launched for 18 years, continuously providing a solid R & D foundation for the company's follow-up new projects. At present, the company's new energy vehicle wiring harness, medical wiring harness, robot wiring harness has passed the verification one after another, customers including Siemens, Samsung, ABB and so on, and continue to diversify to more high-tech areas.
Good quality, accurate clamping position, target price see 138 yuan, maintain "buy" rating
It is estimated that the company's net profit from 2018 to 2020 is 440 million yuan, 710 million yuan and 990 million yuan, corresponding to EPS of 4.32,6.93 yuan and 967 million yuan, and corresponding PE of 27,16.9 and 12.1times. Every step of the development of the company is accurate positioning, advance layout, high value-added products, fast start, is a high-quality growth company. The logic of the company's growth is clear: short-term high-speed growth of the diamond line, ultra-fine wire benefit from the development of wireless charging, battery ears start to start, medium-and long-term new projects reserve rich relay development, maintain the company's "buy" rating, the target price sees 138 yuan!
Risk hint: the price of the diamond line is reduced too fast; the customer expansion is not as expected.