Sega Technology (002796) Report for the Third Quarter of 2019 Review: Complete 5G Product Layout and Expected Performance
Event: The company released the third quarter of 2019 report on October 21, 2019.
In the first three quarters of 2019, the company achieved revenue of 14.
310,000 yuan, an annual increase of 60.
13%, achieve net profit attributable to mother 0.
USD 9.8 billion, an annual increase of 282.
Among them, the third quarter achieved revenue of 5.
2.2 billion, an increase of 49 per year.
59%; net profit attributable to mother is 0.
3.8 billion, an annual increase of 207.
Performance is in line with expectations.
Q3 performance was in line with expectations, and the previous growth rate remained high.
Capitol estimates that the growth rate of net profit attributable to mothers in the first three quarters of this year is (230%, 330%), and the actual growth rate is 282.
56%, in the middle of the forecast interval, in line with expectations.
In terms of quarters, in terms of revenue, Q1, Q2, and Q3 increased by 30.
74% and 49.
In terms of net profit attributable to mothers, Q1, Q2, and Q3 increased by 天津夜网 133 each year.
09% and 207.
Overall, although the growth rate of revenue and net profit attributable to mothers has improved, it has remained high.
Steady growth in profitability and enhanced cost control.
In terms of sales gross profit margin, the company’s gross profit margin for the first three quarters was 19.
69%, an increase of 4 over the same period last year.
In 96 samples, the company’s net profit in the first three quarters was 7.
78%, an increase of 4 over the same period last year.
At 65 levels, profitability has generally maintained an upward trend.
In terms of expense control, from the beginning of the year to Q1, the company’s expense ratios during the H1 and Q3 reporting periods were 10 respectively.
51% and 9.
43%, showing a gradual decline, and cost control has improved.
In terms of R & D expenditures, the company continued to increase expenditures, and the ratio of R & D expenses to revenue from Q1 3.
7% rose to 4 in the third quarter.
The 5G construction tide has driven up performance.
According to the forecast of China Industry Information Network, the number of 5G macro base stations is about 1 of 4G base stations.
At the same time, the demand for 5G single base station equipment for antennas has increased exponentially, and the unit price of antennas and the benchmark in the 4G era have also risen. The antenna market will usher in a good increase in both volume and price.
As metal filters are facing technological breakthroughs in the 5G era, the emergence of ceramic filters will effectively solve the problem.
The ceramic filter itself has the characteristics of high dielectric constant and small size, but the existing technology is not yet fully mature and can generate volume, which is transformed into the continuous advancement of 5G construction. Related manufacturers are also speeding up the deployment of this field.
The company’s revenue share in the mobile communications business is increasing. At present, the company mainly produces antennas and filters.
The company began to lay out ceramic filters in the first half of 2019. After mass production, it is expected to bring about a new round of performance growth.
The main customers of the company’s mobile communications business are downstream mobile communications equipment integrators in the communications industry, such as ZTE and Ericsson.
ZTE is an important customer of the company. Antenna products have begun to expand in batches, and 5G filters have also been delivered.
In order to rely on ZTE’s single large customer, the company actively explored the market. For the North American market, the company established a joint venture in the United States to explore the local antenna market and won the first orders at the end of 2018.
In addition, the company entered the Ericsson supply chain in 2019 and began to make small supplies.
With the gradual acceleration of 5G construction, the company’s layout of antennas and filters will promote the improvement of performance.
Earnings forecasts and investment advice.
The company’s EPS for 2019-2020 is expected to be 0.
93 yuan, 1.
44 yuan, corresponding to PE is 39 times, 26 times.
Cover for the first time and give a recommendation level.
Risk reminder: Base station construction is less than expected, 5G progress is not as expected, and peripheral factors interfere.