Han’s Laser (002008) 2019 first quarter performance preview comment: the performance stage is under pressure in 2019, focusing on new energy batteries and OLEDs

The company is a leader in domestic laser companies. Laser products have benefited from the increased OLED industry explosion rate. At the same time, it has actively explored the battery field and power market.

In the short term, because the sales volume of consumer terminals and innovation are less than expected to affect the company’s performance, we cut the company’s EPS forecast for 2018/19/20 to 1.

61/1.

40/1.

87 yuan (previous forecast was 1.

67/2.

21/2.

83 yuan), long-term still optimistic about the company’s leading laser equipment components, giving 30 times PE in 2020, corresponding to a target price of 56.

01 yuan, maintain “Buy” rating.

The company issued a forecast for the first quarter of 2019 and reported that the merger would achieve net profit attributable to mothers1.

28-1.

64 ppm, with a 10-year average of 55% -65%.

Our comments are as follows: The first quarter is a traditional off-season, and last year was mainly due to non-economic profit and loss driven performance.

Looking back at the company’s quarterly performance, Q1 and Q4 are traditional off-seasons. The abnormal performance of net profit attributable to mothers in Q1 2018 was mainly due to handling the Mingxin test and PRIMA equity acquisition.

7 billion US dollars in revenue, combined with the increase in Q1 2019 software acquisition and withdrawal revenue decreased by about 50 million yuan, resulting in a decrease of 55% -65% of net profit returned to mothers in the first quarter of 2019Is 1.

27-1.

65 ppm, with a ten-year average narrowing of 7% -28%.

15.33 million shares were repurchased for employee shareholding or equity incentives to share the company’s development bonus.

The company announced the repurchase plan in the early stage. As of February 26, 2019, 15.33 million shares have been repurchased, and the payment amount is 4.
.

US $ 9 billion, which is subsequently proposed for employee stock ownership plans or equity incentives, if not implemented, it will be replaced.

The client income is stable, and the Android terminal continues to develop.

The company is capable of supporting self-produced ultra-fast pulsed UV laser equipment with sub-micron processing accuracy, precision welding equipment, linear motors, fingerprint modules and USB automatic welding systems.

Revenue from customers is expected to be relatively stable in 2019, approximately $ 2.5 billion.

The company actively expands non-A customers and cooperates with Samsung, Huawei, Xiaomi, etc. These customers are expected to contribute incremental revenue.

The demand for new energy battery equipment is constant, and the outlook for OLED is optimistic.

In terms of new energy batteries, in 2018, it realized revenue of about 600 million US dollars, which doubled in one year. Customers include Ningde Times.

Looking ahead to 2019, it is expected that high-speed growth will continue to be driven by demand and contribute over 1 billion in revenue.

In terms of OLED, domestic manufacturers led by BOE, Shentianma, and Huaxing Optoelectronics continued to expand investment in production lines, and the investment in BOE’s four 6th generation lines alone reached 200 billion.

The company’s laser equipment supplies domestic mainstream panel manufacturers, providing four types of solutions: laser cutting, laser repair, laser replacement and automatic screen inspection. Currently, it has deployed OLED 80% laser processing equipment, and independently researched and developed about 10 laser processing. Estimated revenue in 2019The scale reaches about 500 million.

Risk factors: The performance of core customers is lower than expected, the ability to integrate new businesses is weak, and market competition is intensifying.

Investment suggestion: In the short term, due to the weaker-than-expected innovation on the mobile phone side, the company’s performance is under pressure, and we lower the company’s EPS forecast for 2018/19/20 to 1.

61/1.

40/1.

87 yuan (previous forecast was 1.

67/2.

21/2.

83 yuan), long-term still firmly optimistic about the company’s leading laser equipment accessories, ultra-narrow bezels and non-porosity of mobile phone terminals in 2020 is expected to increase the penetration rate, the demand for 成都桑拿网 upstream laser equipment may pick up, and the company ‘s profits will meet the growth channel again, so we give 202030 times PE, corresponding to a target price of 56.
01 yuan, maintain “Buy” rating.