Huiding Technology (603160) performance preview comment: Q4 slightly exceeded expectations 5G ultra-thin & IOT new growth year

Huiding Technology (603160) performance preview comment: Q4 slightly exceeded expectations 5G ultra-thin & IOT new growth year

Event: The company announced an announcement on the evening of January 21, 2020, and it is expected to realize net profit attributable to mothers in 201922.

5-24.

500 million, an annual increase of 203% -230%.

  The comments are as follows: Q4 武汉夜网论坛 performance was slightly higher than expected, and 5G ultra-thin innovative products continued to explode.

The company announced that it will gradually realize net profit attributable to mothers in 201922.

5-24.

5 ‰, with an annual increase of 203% -230%, and the quarterly Q4 net profit range for a single quarter is 5.

4 -7.

4 ppm, a year-on-year increase of 27% -74%. Considering Huawei ‘s high-end mobile phone cut orders in the fourth quarter and other factors, the company’s single quarter profit was slightly higher than expected.

As the global leader in screen fingerprints, the company launched new ultra-thin screen fingerprint products in the first year of 5G mobile phones in 2019 and 2020. It is expected to replicate the continuous outbreak of fingerprints brought by the 2018Q4 screen fingerprints. At the same time, the company targets optical LCD screen fingerprints.The plan will also be launched this year. At the same time, based on the optimism of the company’s IOT products, we raised the 2019-2020 performance to 23 respectively.

3 (+4.

5%) / 28.

6 (+5.

50%) billion, continue to recommend.

New 5G ultra-thin touch products bring new added value and high profitability.

In the 5G era, the thickness of mobile phones has increased, and new design and stacking requirements have been proposed. The fingerprint recognition module will become thinner. The company’s early research and development of ultra-thin fingerprints will be mass-produced in Q4 2019. Due to the new product technology level, research and development costs, and chip size changes, it will affect wafer products.The 5G ultra-thin new products are expected to bring higher added value and more players at the same time. The company’s new 5G ultra-thin screen fingerprint products are expected to replicate the competition and price premium of fingerprint pairs under the 2018Q4 screen, and the company’s gross profit marginProfitability and net profit margins are expected to remain high for the expected time.

In addition, new LCD products are expected to be commercially promoted, which will also lead to the increase in IOT performance. In ten years, IOT will build a comprehensive platform such as audio and video.

The company builds an integrated platform for the Internet of Things around the four main areas of support: “physical perception, information processing, wireless transmission, and security.” At present, wearables, smart homes, and other products are generating revenue in succession, and continue to expand human-computer interaction, biometrics, and the Internet of ThingsApplication depth and breadth of the three product lines of the platform.

According to the company announcement and the recent press conference, the company’s in-ear detection and touch two-in-one chip is suitable for TWS headsets such as OPPO. The car touch solution is commercially available on well-known car brand models. The car-grade fingerprint solution also introduces mass production with mainstream car manufacturers.Phase; Bluetooth low energy chips will enter mass production within the year.

The company has spent 10 years developing the Internet of Things market. After NXP VAS merger and acquisition integration, it promotes the company’s comprehensive service capabilities in audio solutions for IOT.

Profit forecast: Benefiting from the continued penetration of under-screen fingerprints in AMOLED mobile phones and the addition of new products such as 5G ultra-thin, LCD and IOT, we are optimistic about the intensified competition and 杭州桑拿网 long-term growth of the company.The collections are 65.

8/83.

200 million, performance was 23.

3/28.

600 million, with an annual growth of 214% and 23%, corresponding to PE 56/46; comprehensively refer to the company’s competitive advantage and market size, give it an estimated value of 60 times in 2020, and maintain a “buy” rating.

Risk warning: technical innovation risk; price competition risk; mobile phone restructuring is less than expected.