The performance has improved from the previous month, and the trend for the whole year is clear.
In the first three quarters of 1919, the company achieved revenue of 822 million yuan, an increase of 23.52 percent over the same period last year; the net profit attributed to shareholders of listed companies was 47 million yuan, a decrease of 6.02 percent over the same period last year; and the non-parent net profit was 42 million yuan, a decrease of 6.43 percent over the same period last year. The performance is in line with market expectations. The company's gross profit margin in the first three quarters of 2019 was 21.93%, down 2.67 percentage points from the same period last year. The net interest rate was 5.78%, down 1.61 percentage points from the same period last year. 19Q3's revenue in a single quarter was 307 million yuan, with a year-on-year + 14.13% gross profit margin of 25.67% for 19Q3, an increase of 1.82% over the same period last year.
The subdivision leader of acoustic components benefits from the outbreak of the TWS market.
The company continues to expand new business, layout data transmission wires, connector wires and other communication wire fields.
The company has opened up new customers besides Apple Inc in its acoustic business such as acoustic wires and semi-finished products, and launched new products such as Bluetooth headsets. The increase in sales of acoustic products, especially the mass production of Bluetooth headphones, increased sharply over the same period last year, driving the rapid growth of the acoustics business. The company conforms to the trend of "wireless, intelligent and digital" in the electro-acoustic industry. with the improvement of capacity utilization and yield, the revenue of headphone products has increased significantly, and the company will benefit significantly.
Deep ploughing "big acoustics, big transmission" industry, continue to integrate and expand after the acquisition of Lianyun Acoustics, enter the headphone terminal brand market, adhere to the "big acoustics, big transmission"
Industry, steadily and rapidly promote the implementation of the strategic policy of "vertical integration and horizontal expansion". Continue to deepen the integration with Lianyun Acoustics, "empower" each other with Lianyun Acoustics, enhance the company's position in the headphone industry, and realize the transformation and upgrading from "wired to wireless, from semi-finished products to finished products". Actively grasp the further upgrading of the electro-acoustic industry in the future.
Risk hint. The overall downstream demand fell short of expectations. The company's business integration and expansion did not meet expectations. Market competition intensifies and gross profit margin declines.
The leader in the field of acoustic subdivision, maintaining the rating of "increasing holdings"
We expect the company to achieve a net profit of 0.77 million yuan in 19-20-21. EPS0.63/0.82/1.05 yuan, a year-on-year growth rate of 19.9%, 30.7%, 27.9%, the current stock price corresponds to PE48.3/37/28.9X, the industry is comparable to Gale shares, Lixun Precision on 19-20-21 annual average PE46/33/26X, the company's valuation is slightly higher than the average of comparable companies, considering that the company's performance is on the rise, there is plenty of room for future growth, and the "overweight" rating is maintained.
