Huanxu Electronics (601231) comments: August revenue growth exceeds expectations Apple’s new products are expected to accelerate the release of company performance

Event: The company’s consolidated operating income in August 2019 was RMB 39.

12 ppm, an increase of 30 from the same period last year.

30%, a month-on-month increase of 19.7% over the previous July
.

10%.

The company’s consolidated operating income from January to August 2019 was RMB 21.8 billion, an increase of 19 over the same period last year.

81%.

August revenue surged 30%, and new Apple products are expected to drive the company’s performance growth: the company’s August revenue was 39.

1.2 billion, an annual increase of 30.

3%. Since July, the growth rate has exceeded 30% for two consecutive months. The company ‘s large increase in revenue is mainly affected by the stocking of new iPhones.

Apple released the iPhone11, iPhone 11 Pro, and iPhone 11Pro Max on September 11th. The new models have improved connectivity and battery life, and the iPhone 11 is 1,000 yuan lower than the iPhone XR in China.

Pre-sale of the new iPhone started on September 13. From the online sales data, the first-day sales data of Tmall’s iPhone 11 pre-sale increased by 335% compared to iPhone XR, and JD.com’s pre-sale sales of iPhone 11 increased by 480%.
Only 5 minutes after the sale, the new iPhone 11 Pro series sold more than expected, and iPhone sales are expected to exceed expectations in the second half of the year.

The company is a supplier of Apple iPhone wireless communication modules and iWatch SiP modules, trying to benefit from Apple’s continued sales of new products.

The new iPhone is equipped with UWB technology, and the company is expected to enter the supply chain: Apple’s new iPhone 11 series will all be equipped with UWB technology.

UWB is a wireless carrier communication technology. Unlike traditional narrow-wave signals, UWB uses a wide spectrum range, which is not easy to be interfered with. It can provide more accurate positioning capabilities than Wi-Fi and Bluetooth.

The company is a forefront enterprise of conventional “ultra-broadband wireless communication key technologies and their coexistence and compatible technologies”. It is expected to enter the iPhone UWB module supplier. It will benefit from the hot sales of Apple products and technological innovation in the future.

5G mobile phones are successively released, and the SiP packaging market is expected to usher in more space: Recently, mobile phone manufacturers have successively released 5G mobile phones. Huawei ‘s 5G mobile phone Mate20X has been officially launched on August 16th, and vivo has also released the iQOO Pro 5G version, which is less than the size.4,000 yuan.

On September 19th, Huawei will release Mate 30, which is expected to be equipped with Kirin 990 5G chip. Kirin 990 5G is the world ‘s first flagship 5GSoC. It integrates a 5G modem into the SoC chip for the first time, and has a better external 5G baseband.
Advantage control.

The gradual release of 5G handsets by mobile phone manufacturers indicates that 5G is accelerating.

Due to the huge increase in compatible expansion required for 5G, the number of components for mobile phone RF front-ends will increase significantly.

Miniaturization technology can gather many components in a smaller space, and it is expected to benefit from the development of 5G.

The company is a 都市夜网 leader in SiP packaging. It has already established a joint venture with Qualcomm, and jointly withdrew ASUS QSiP mobile phones. It is expected to benefit from the acceleration of 5G in the future.

Give “Recommended” rating: optimistic about the company’s industrial chain level of upside, technological advantages continue to expand in new applications, the recovery of Apple’s industrial chain drives the company’s performance growth, and predicts that the company’s net profit attributable to mothers in 2019-2021 will be 13.

4.8 billion, 17.

2.6 billion and 21.

85 trillion, EPS is 0.

62 yuan, 0.

79 yuan, 1.

00 yuan, the corresponding PE is 23.

71X, 18.

53X, 14.

63X.

Risk warning: iPhone, iWatch may not be able to predict the number, the server market demand is less than expected, and the rising cost 杭州桑拿网 of raw materials costs exceeds expectations.