Zhi Zhi released the 2019 annual report and the forecast for the first quarter of 20120: the operating income in 2019 was 1.743 billion yuan, an increase of 167.7% over the same period last year; the net profit belonging to shareholders of listed companies was 3500-43 million yuan, down 5.40% and 23.00% over the same period. Non-profit is expected to increase by 129.23% 181.62% over the same period, exceeding market expectations.
The operating net profit of 2019Q4 and 2020Q1 reached a record high for two consecutive quarters, while 2020Q1 deducted non-profit doubled compared with the same period last year.
2019Q4's revenue was 439 million yuan, an increase of 111% over the same period last year, mainly due to the listing of Ates at the beginning of 2019. 2019Q4's operating profit was 36.05 million yuan, up 5% from the previous month; the net profit from its mother was 32.11 million yuan, up 59% from the previous month; and the non-net profit was 27.64 million yuan, an all-time high. The net profit of 2019Q1 is 45.45 million yuan, of which non-recurrent profits and losses such as investment income and government subsidies are 30.19 million yuan, and the non-operating profit and loss of 2020Q1 is about 4000 yuan. The forecast median net profit of home ownership is 39 million yuan, an increase of 21% over the previous month, and the performance hit a new high. In February this year, the operating rate of the industrial chain was generally affected by the epidemic for 2-3 weeks. Intelligent Power plants in Dongguan and Vietnam adjusted the product structure, strengthened the overseas layout, and the operating effect improved better than expected.
Long-term service to Samsung, OPPO, VIVO, Lance Technology and other well-known consumer electronics customers. From 2011 to 2018, the proportion of sales to the top five customers of Smart Power has maintained a high level of 70%, while Samsung and Lance have been among the top five customers for a long time.
Between 2011 and 2018, Intelligent Power accounted for between 25 and 71 per cent of sales to Samsung, its biggest customer.
Follow customer needs and strengthen overseas layout. Set up a subsidiary in Vietnam in 2015, the company group is currently composed of 9 subsidiaries, forming a production base and R & D center with Shenzhen, Dongguan, Vietnam and South Korea as the core. In November 2019, Intelligent Power proposed to raise no more than 850 million yuan for Vietnam structural and heat dissipation component projects, mainly producing composite plate cover, flash cover, earpiece network, watch heart rate lens rear cover, ultra-thin heat pipe, ultra-thin VC and VC seven categories of products.
At the end of 2019, the total assets of the company were 1.7929341 billion yuan, an increase of 62.14% over the end of the previous year. The owner's equity belonging to the shareholders of the listed company was 757.1547 million yuan, an increase of 21.87% over the end of the previous year.
The penetration ability of 5G high frequency electromagnetic wave is poor, there is transmission loss in wireless charging, the demetallization of mobile phone shell is the general trend, and the composite plate housing meets the development opportunity. The color and texture of the back panel of the mobile phone has become an important selling point, and glass has become the mainstream shell material instead of metal. The texture effect of the back cover of the composite panel phone is similar to that of glass, and the cost is only 30% of that of 3D glass, which meets the needs of the middle and low-end mobile phone market. 70% of the smartphone market needs low-and middle-end models with less than 3000 yuan.
The heat dissipation demand of 5G mobile phone provides an opportunity for the development of intelligent power function. The power consumption of 5G mobile phones is 1-2 times that of 4G mobile phones, and the popularity of 5G mobile phones will boost the demand for heat dissipation materials. Zhi Power invests in ultra-thin heat pipe, VC and other heat dissipation components projects in Vietnam plant.
Maintain earnings forecasts and maintain "buy" ratings. Maintain the net profit forecast of 170 PE in 2020, and increase the forecast by 297 million in 2022. The current stock price is 22 times higher than that of 2020, maintaining the "buy" rating.
