Sanan Optoelectronics (600703): The turning point has arrived

Sanan Optoelectronics (600703): The turning point has arrived

Sanan Optoelectronics released the 2019 performance forecast company expects that the net profit attributable to the audit in 2019 will gradually decrease.

73.6 billion to 15.

566 million, a year-on-year decrease of 45% to 55%, which corresponds to the net profit attributable to mothers in 201912.

73.4 billion to 15.

56.4 billion.

It is expected that the non-profit profit after tax deduction for 2019 will decrease by 13.

48.8 billion to 15.

736 ppm, a 合肥夜网 year-on-year decrease of 60% to 70%, which corresponds to a net profit after deduction of 6 in 2019.

744 to 8.

99.2 billion.

  The performance in 2019 and the fourth quarter is in line with expectations. The median net profit attributable to mothers in 2019 is 14.

1.5 billion, the median net profit after deduction is 7.

870,000 yuan, 19Q4 corresponds to net profit attributable to mother 2.

63 ppm, an increase of 10 in ten years.

97%, down 2 from the previous month.

2%, corresponding to the net profit after deduction of 0.

98 trillion, down 34 a year.

3%, down 52 from the previous month.

9%.

Overall, the performance of 2019 and 19Q4 is in line with expectations.

  In the first three quarters of 2019, the decline in the price of LED chip products has continued to expand, and as a result, the cost of the 武汉夜网论坛 company has fallen slightly below the decline in product prices, and the gross profit margin has gradually improved, leading to a decline in operating performance.

In the first three quarters, the sales scale of Sanan Integration was relatively small, which affected the continuous performance to a certain extent.

  After entering 19Q4, through the improvement of the industry’s production capacity supply and the recovery of the demand side, the price of LED products has gradually stabilized and is expected to gradually meet the upward price cycle; the gradual release of Sanan’s integrated production capacity is expected to grow rapidly and synchronously, and the scale effect continuesIt will also be expected to gradually improve performance.

  We believe that driven by three factors, including the revival of the LED industry, the penetration of Mini LED applications, and the continuous release of Sanan’s integrated production capacity, the company’s mid- and long-term investment value has become apparent.

  Investment Ratings and Estimates We forecast the company’s revenue to be 72 in 2019-2021.

23, 91.

57, 109.

09 million yuan, net profit attributable to mother is 14.

15, 23.

11, 32.

100,000 yuan, the corresponding growth rate is -50%, 63%, 39%, EPS is 0.

35, 0.

57, 0.

79 yuan, corresponding PE is 57X, 35X, 25X. Considering the Mini LED industry application trend and San’an Integration gives the company a long-term growth space for domestic substitution, it gives a 42X PE valuation in 2020, corresponding to a reasonable price of 23.

92 yuan, giving the company a “strong recommendation” rating.

  Risks suggest that the recovery of the industry’s prosperity is below expectations, the progress of Mini LED application penetration is below expectations, and Sanan ‘s integrated capacity release is below expectations.