Guoxing Optoelectronics (002449): The semi-annual report exceeds expected short-term performance under pressure

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Guoxing Optoelectronics (002449): The semi-annual report exceeds expected short-term performance under pressure

Investment Highlights: The company releases its semi-annual report for 2019.

The company released the report for the first half of 2019 and achieved operating income16.

26 ppm, a decrease of 8 per year.

87%; realize net profit attributable to shareholders of listed companies.

97 ppm, a decrease of 12 per year.

39%; Realize net profit attributable to shareholders of listed companies in place of non-recurring gains and losses1.

74 million, down 14 each year.

03%; basic return is 0.

32 yuan.

  The chip business is fiercely competitive and short-term performance is under pressure.

In total, the subsidiary Guoxing Semiconductor achieved operating income of 15,599.

720,000 yuan (of which 9,118 were sales to the parent company.

710,000 yuan), a decrease of 6.

58%; net profit was 4,034.

310,000 yuan, net profit for the same period last year was 2,150.

630,000 yuan.

Due to the fierce competition in the overcapacity of upstream chips and the sharp rise in product prices, the performance of National Star Semiconductor changed from profit to loss, which obviously dragged down the performance of the parent company.

We believe that the chip business is still under pressure in the short term, but the company’s packaging business can absorb part of the chip’s production capacity, replacing the heavy volume of applications of individual chip companies and mini LEDs, and the chip competition pattern will improve in the future.

  The customer and product structure were optimized, and gross profit margins continued to increase.

In the total reported, the company’s gross profit margin is 25.

22%, an increase of 0 over the same period last year.

47 units.

Under the background of LED white light packaging and chip prices falling, the company’s gross profit margin improvement mainly benefited from product and customer adjustments.

The company’s LED packaging and module revenue accounted for 89% in the first half of the year.

46% increased to 91.

48%, and gross margin increased by 3.
.

47 units.

The company has deep technology accumulation and strong brand effect. The high-end brand REESTAR has a certain reputation in the Americas and Europe.

We believe that the profitability of the company’s LED packaging business is still 北京夜网 continuously strengthened, and the packaging leader has further increased and consolidated.

  Mini LED is emerging and the company will continue to benefit.

Guoxing Optoelectronics has always been at the forefront of the market in the field of Mini LED. At present, the company is P0.

9 Mini LED display series has been widely recognized by mainstream display manufacturers in the market as a representative of the smallest mass production in advance.

In June this year, the company officially released IMD-M07 with a pitch of 0.

7mm is P0.

The following products and Micro LED applications have completed the technology and market layout.

In the field of Mini LED backlight, the company helped the TCL X10 QLED 8K TV win the CES “2018-2019 8K TV Gold Award”, showing the company’s technical strength.

We are optimistic about the development prospects of the Mini LED market, and the company will fully benefit from the rapid growth of the Mini LED market.
  Investment suggestion: Considering the relatively fierce competition in the LED industry, the continued decline in upstream chip prices, and the sluggish demand for downstream white light, we lower our profit forecast for the company and change EPS from 0 to 2019-2020.
98, 1.

25, 1.

60 yuan adjusted to 0.

81, 1.

03 and 1.

29 yuan, corresponding to PE.

6, 10.

8 and 8.

6 times.

Considering that the company is a leader in domestic small-pitch packaging, we believe that the company’s reasonable estimate level is 18-20 times corresponding to 2019, and the corresponding target price is 14.

58-16.

20 yuan, maintain “Buy” rating.

  Risk warning: the production expansion progress is less than expected; product prices continue to decline; downstream demand is less than expected.