Dongshan Precision (002384): Multi-services welcome development in 5G wave

Event Overview The company released the first three quarters of 2019 performance report, and the first three quarters of 2019 achieved revenue of 163.

69 ppm, achieving net profit attributable to shareholders of the parent company.

RMB 880,000; revenue in the third quarter of 2019 was 63.

90,000 yuan, an increase of 3 in ten years.

15%, achieving net profit attributable to shareholders of the parent company.

86 ppm, a 10-year increase of 16.


At the same time, the company foresees that the net profit attributable to shareholders of listed companies in 2019 is expected to increase by 30% -50%, that is, the net profit attributable to shareholders of listed companies will be 10 in 2019.

500 million?


Benefiting from the 5G base station construction and replacement wave, the performance of the PCB business unit can be expected to acquire Mflex and Multek, and the printed circuit board business unit is gradually growing. The company acquired Mflex in 2016 to enter the FPC business and become a mainstream FPC supplier for international brand manufacturers.1. In 2018, the company acquired Multek and cut into the PCB business to replace the company’s vacancy in the hard board field and further improve 深圳桑拿网 the layout of the circuit board division.

Since 2015, the company’s revenue and net profit have achieved an increase in growth rate. After the completion of the acquisition of Mflex and Multek, Dongshan Precision has carried out in-depth integration and management. The operating efficiency has significantly improved the overweight wireless communication module business and improved the overallCompetitiveness expanded after entering the 5G era. As the number of base stations will increase in the 5G era, 5G antennas will become active, and the integration of RRU and antennas into AAU will bring a comprehensive upgrade of manufacturing processes and materials.

The company has integrated leading industry production capacity and complete business layout in filter, antenna, PCB, die-casting and other communication equipment component products. It has integrated integrated production capacity and technical conditions, and will provide integration through the company’s internal business integration.The wireless communication module products will further enhance the company’s comprehensive competitiveness in the communications field and increase the company’s profitability.

Investment recommendations We expect the company to achieve operating income of 223 in 2019-2021.

5 billion, 272.

50 ppm, 322.

500,000 yuan, the annual growth rate was 12.

73%, 21.

92%, 18.

35%; net profit attributable to mothers is 11 respectively.

1.5 billion, 15.

5.7 billion, 22.

21 trillion, the annual growth rate is 37.

48%, 39.

63%, 42.

65%; corresponding EPS are 0.

69 yuan, 0.

97 yuan, 1.

38 yuan.

With reference to the Shenwan Printed Circuit Board Index, the PE (TTM) of the past two years is about 36 times; we give the company 30 times the PE of 2020 EPS with a target price of 29.

1 yuan, covering for the first time, give “buy” rating.

Risks prompt the transition and restructuring effects of downstream application market fluctuations, 5G base stations and replacements exceed expectations, etc.