Jiemei Technology (002859): Q3 single-quarter revenue increased 43% MoM, next year’s performance is expected to be optimistic

Jiemei Technology (002859): Q3 single-quarter revenue increased 43% MoM, next year’s performance is expected to be optimistic

Investment Highlights: The company released the third quarter report of 2019: the company achieved revenue in the first three quarters.

56 ‰, 34 from the previous decade.

6%; net profit attributable to mothers reached 95.75 million yuan, an annual extension of 53.

1%.

Among them, the 19Q3 single quarter achieved revenue2.

74 trillion, 32 years ago.

1%; net profit attributable to mothers was 41.61 million yuan, an annual extension of 57.

9%.

Due to the 南京龙凤网 significant increase in gross profit margin and increased R & D expense accrual, net profit in the third quarter was lower than market expectations.

  Single quarter revenue increased significantly by 43% month-on-month, and the recovery of the industry’s business climate was verified.

Since July, MLCC’s downstream customer inventory has become reasonable, the impact of industry changes has gradually subsided, the company’s output and orders have clearly recovered, the crop rate has steadily increased, and Q3 single quarter revenue has increased by 43% from Q2.

Looking forward to 2020, the 5G landing will significantly stimulate the demand for passive components, and the company has optimized management at the bottom of the industry boom and increased the supply ratio to Japanese customers. We believe that with the continued prosperity of the industry, the company will next yearWill achieve consecutive quarterly high results.

  Q3 net profit was affected by gross profit margin and R & D expenses, but unfavorable factors will gradually shrink.

1) Since the company Q3 is still digesting and absorbing the high-cost wood pulp raw material stocks it has purchased, and has adjusted the price appropriately to seize the share of Japanese customers, the company’s Q3 single-quarter gross margin was 33.

6%, a decrease of 6 over the same period last year.

7 points.

2) The company’s air force has gradually introduced cutting-edge talents and teams in electronic materials, resulting in an increase in Q3 R & D expenses43.

2% to 22.16 million yuan.

Under the influence of the above factors, the company’s Q3 net profit growth was less than expected.

However, since the fourth quarter, the reduction of high-priced wood pulp inventory has been consumed, and the cost pressure has dropped significantly. New products (high-end release films, black plastic carrier tapes, etc.) that have been gradually developed have contributed to the revenue and amortized the expense ratio.It is believed that the company’s gross profit margin and net profit margin will pick up quarter by quarter.

  Adhere to the cultivation of subdivided industries and build three major technology platforms.

The company’s development idea is to be the champion of the subdivision field, and it will have a greater improvement in horizontal integration in the future.

Currently, it is strategic to build three technology platforms: alternative technology platforms, electronic chemical technology platforms, and polymer material technology platforms.

On the basis of the technology platform, we will develop more categories of imported alternative electronic consumables, and be the top in the industry, opening up room for growth.

The company’s resolution announced that the convertible bonds to be issued, which do not exceed US $ 600 million, will be mainly invested in localized alternatives for high-end thin film products (optical-grade BOPET film and CPP protective film), which will realize the expansion into the field of photovoltaic display and new energy applications.

  Profit forecast: The company works hard during the downturn of the industry to lay the foundation for future high growth in terms of production capacity reserve, technology transformation, and new product introduction. At the same time, the implementation of convertible bond fundraising projects will open up tens of billions of value-addedMarket space.

  In addition, the company intends to use 1-1.

500 million US dollars of own funds to buy back shares for employee stock ownership plans or equity incentives, highlighting the company’s confidence in long-term development.

We lowered our earnings forecast as Q3 results were below expectations.

It is estimated that the company’s net profit attributable to mothers will be 19-21.

06/3.

91/5.

$ 52 million (budget forecast) 2.

60/4.

14/5.

7.3 billion), corresponding to a PE of 38/20/14 times, maintaining the “Buy” level.

  Risk warning: MLCC’s economic recovery does not meet expectations; the introduction of new products to customers does not meet expectations; R & D progress fails to meet expectations.