Suntec Technology (002815) 2019 Interim Report Review: Interim Report Exceeds Expectations 5G Products Make Good Progress

19H1 revenue increased by 杭州桑拿网 2% per year, and net profit fell by 6% per year, slightly lower than the expected 19H1 revenue18.

51 ‰, with a growth rate of 2% in ten years, and a net profit of 2.

6.5 billion, a year-on-year decrease of 6%.

Gross profit margin 31.

76%, a decrease of 0 every year.

92pct, net interest rate 14.

31%, down by 1 every year.

14 points.

Mainly due to the adverse effects of the macro environment and trade war, the company’s revenue and profit growth exceeded expectations.

  19Q2 revenue was 9.

4.6 billion, an increase of 1% in ten years, net profit attributed to mothers1.

4.1 billion, down 7% before.

Gross profit margin 32.

37%, a decrease of 0 per year.

37pct, net interest rate 14.

94%, down by 1 every year.

31 points.

The company’s Q2 R & D expenses accounted for 6.

18%, the previous increase is the initial decline in the company’s net interest rate.

  The product line layout has become more complete, 5G PCB products have expanded, and the product structure has further optimized the PCB board business: the sales area of medium and large-volume orders (above 20 square meters) accounted for 69%.

Since the second quarter, the company has made positive progress in high-speed boards for 5G middle schools, and its revenue has increased by 200%.

At present, the company’s 5G customers include ZTE, Fiberhome, Putian, CommScope, Calix, etc.

  FPC business: Sandeguan revenue 5.

82 ‰, an increase of 18% in ten years, and a net profit of 0.

76 ‰, an increase of 53% in ten years, and a net interest rate of 13.

06%, one year +2.

93 points.

Mainly due to better demand for FPC from downstream panel factories, which led to increased profitability.

  IC carrier board business: The company acquired a 40% stake in Punoway in June 2019, which officially opened the layout of the IC carrier board field.

  The overall operating indicators remained stable. The second phase of the construction of Chongda Jiangmen has been completed. The production capacity has gradually been released. The operating efficiency indicators of the company indicate that the cash / receipt received for the sales of goods is 100%, and the account receivable cycle is 72 days, at least 2 days.The inventory turnover days were 46 days, a slight decrease over the above. These indicators reflect the good operating conditions.

  Indicators of the balance sheet appear, with fixed assets of 20.

6.7 billion, a slight increase at the beginning of the period, and the number of projects under construction remained at 2.

2.4 billion, a slight decline each year, mainly because Jiangmen Chongda Phase II completed the construction progress, and the production capacity was gradually released.

  Excellent management of high-quality companies, given a “buy” rating due to adverse macroeconomic factors, we slightly reduce the company’s profit forecast for 2019-2020 to achieve net profit6.


4.4 billion yuan (original 7.

At 2.1 billion US dollars, it is currently expected to correspond to PE23x / 19x in 19-20 years. Considering that the company’s key customers’ 5G orders are expected to be released in the second half of the year, the company will continue to grow and maintain a “buy” rating.
  Risks suggest that the PCB industry is weaker than expected