Leading Puzzle Manufacturing (002600): Long Wind Breaking Waves Will Regain Profitability

Leading Puzzle Manufacturing (002600): Long Wind Breaking Waves Will Regain Profitability
Lianzhizhizhu released the semi-annual report. Through detailed interpretation of the financial report, the core highlights are as follows: 1) Net profit has grown.The company achieved sales income of 95.9.6 billion yuan, down 2 previously.25%, excluding the impact of bulk trade income, revenue in the reporting period increased compared to the same period last year.80%; Realize net profit attributable to owners of the parent company.1.4 billion, an increase of 291 over the same period last year.72%; net profit attributable to owners of the parent company in place of non-recurring gains and losses6.7.3 billion, an increase of 300 over the same period last year.27%. 2) The company’s operating conditions and management adjustments continue to improve, so that the company’s main businesses in the manufacturing of precision functions and structural components, display and touch module business revenue and profits have maintained higher growth compared to the same period last year.The revenue growth rate of precision functions and structural parts was 18.62%, operating gross margin increased by 6.25%, display and touch module revenue increased by 5.25%, operating gross margin increased by 2.17%. 3) The company’s R & D innovation and increasing investment in R & D.The company’s R & D funding for the first half of the year was 5.$ 5.5 billion, an annual increase of 4.01%.The company recognizes independent innovation and has established a complete technological 南宁桑拿 innovation system. R & D expenses accounted for about 6% of operating income in the first half of the year.09%. In the future, the company needs to further integrate the consumer electronics components industry chain resources, and strive to create a one-stop supply platform for consumer electronics components for downstream customers.At the same time, the company cut into new product lines such as wireless charging and other modular products, and enriched the types of reorganized products, building a good business development momentum and performance growth prospects.The company’s share of major customers is generally stable, and the business conditions of precision function and structural parts business, display and touch module business continue to improve.The company vigorously promoted management and control measures such as cost reduction and efficiency improvement, increasing the speed of automation, reducing costs and expenses, and also improving the efficiency of production and management.With the coming of 5G, a new round of smart terminal products will trigger a new replacement trend. The types and models of smart terminal component products will also become increasingly abundant. The demand for efficient and high-precision products will require processing technologies for industry companies.Higher requirements for processing accuracy and assembly capabilities will help Leading Education to gain more market share, and the company’s competitive advantage will become increasingly prominent. Earnings forecasts and investment advice.With the advent of the 5G era, the smart phone market will usher in a new wave of replacements, the improvement, promotion, application and expansion of new technologies such as OLED and wireless charging technologies. Some smart terminals will usher in a revolutionary upgrade in the future.The application of the update function of this category has extremely high requirements for the new process, which has led to the need for more new materials and precision functional devices to assist in smart terminal products.There is a significant improvement.Therefore, we expect the operating income of the company in 2019E / 2020E / 2021E to reach 256.06/302.98/360.91 ppm, an increase of 13 in ten years.8% / 18.3% / 19.1%, the company’s 2019E / 2020E / 2021E attributable to the parent net profit can reach 21.33/25.71/31.810,000 yuan, an increase of 413 in ten years.7% / 20.6% / 23.7%, the current corresponding PE is 26.8/22.2/18.0x, maintain “Buy” level. Risk warning: downstream demand is less than expected, industry competition is intensified, and the impact of international expectations.