Depth-Company-Shanghai Electric Power Co., Ltd. (002463): 5G Communication Board + Automotive Board Two-Wheel Drive Performance Continues High Growth

Depth * Company * Shanghai Electric Power Co., Ltd. (002463): 5G Communication Board + Automotive Board Two-Wheel Drive Performance Continues High Growth

The company is a leading PCB company in China. Considering the scale construction of the 5G network, it will bring more growth opportunities for the company’s communications board business. At the same time, the construction of the company’s second plant in Huangshi will effectively solve the problem of automotive board capacity and open growth for the automotive board business.Space, covering for the first time, give “overweight” rating.

Highlights of support levels The first half of the year continued with high growth.

In 2018, thanks to the turnaround in the yellow market and the optimization of product structure, the company achieved revenue54.

97 ppm, an increase of 18 years.

81%, net profit attributable to mothers5.

70 ppm, an increase of 180 in ten years.

29%, the overall profit margin has returned to industry-leading levels.

In the first half of 2019, the trend of revenue growth and improvement in gross profit margins continued. The company announced that it expects the net profit attributable to shareholders of listed companies to be 4 in the first half of the year.

4-5.

0 ppm, with a ten-year increase of 123.

86% -154.

39%.

5G enters the commercial era, and the enterprise communication board business welcomes growth opportunities.

The company’s enterprise communication board products are at the leading level. Its main customers include Huawei, Nokia, etc. At present, it has participated in the construction of multiple 5G test networks in the enterprise communication market.

According to the latest understanding, Huawei expects that the number of 5G base stations scheduled in the world in 2019 will reach 500,000.

The scale construction of 5G base stations will bring new growth potential to the company’s communications board business.

Supply and demand in the high-end automotive plate market is stable, and production efficiency is improved.

The main products of the company’s auto plate business include automotive active and passive safety module PCBs. Currently, Huli Microelectronics is the main production base.

Subject to the production capacity of Huli Microelectronics, while improving 北京桑拿洗浴保健 production efficiency, the company plans to complete the construction and acquisition of Huangshi No. 2 Plant by the end of 2019, in order to prepare for the subsequent demand recovery of the automotive electronics market.

It is expected that the commissioning of Huangshi No. 2 Plant will effectively solve the problem of excessive production of automobile panels.

Estimated expected company 2019?
The EPS in 2021 is 0.

47, 0.

58 and 0.

73 yuan, the current sustainable corresponding PE is 29X, 24X and 19X.

Considering that 5G networks will enter a large-scale construction period, the company’s communications PCB business is expected to usher in growth, covering for the first time, and given an “overweight” rating.

The main risks faced by ratings are that the progress of 5G network construction is not up to 南宁桑拿 expectations; the growth of automotive panels is less than expected.