Leading Puzzle (002600): sailing across the waves 2019

Leading Puzzle (002600): sailing across the waves 2019
Deeply cultivate the material market and lay out precision parts.The company’s main business segments by product category mainly include precision functions and structural parts, display and touch modules, materials, trade and logistics business, etc. Among them, the company focuses on the development of manufacturing-related businesses. The specific products include precision functional parts (die cutting), CNC, stamping, injection molding, etc.), precision structural parts, liquid crystal display modules, capacitive touch screens, magnetic materials, wires and cables, motors, sub-assembly, etc.Before 2014, the company successfully advanced to become one of the largest domestic manufacturers of ferrite magnetic materials by mainly producing magnetic materials such as permanent ferrite, soft ferrite, and rare earth permanent magnets; through M & A in 2015 and 2016Reorganize Dijing Optoelectronics and Dongfang Liangcai, effectively integrate and integrate customer resources, and help the company successfully enter the supply chain of Xiaomi and OPPO.In 2017, it acquired high-quality functional device products and one-stop solutions for customers by acquiring 100% equity of Leading Technology, a leader in precision functional devices for domestic consumer electronics products. The expansion of the consumer electronics market will bring broad market demand for the precision functional device industry.With the rapid development of emerging technologies such as the Internet of Things and cloud computing, smart mobile terminal products represented by smartphones, tablets, and wearable devices have become the development engines in the field of consumer electronics. The pace of 5G is gradually approaching, and gradually in the futureThe introduction of the fifth generation of mobile communication technology (5G) will further promote the rapid development of the 3C industry and bring new growth potential for the development of the precision functional device industry.According to IDC’s forecast, it will gradually expand in 2019, but from the second half of the year, 5G equipment will gradually reach consumers, and smartphones will resume the growth trend. It is expected that the scale will gradually expand to 13 in 2019.9.5 billion units, because the layout of 5G takes several years to achieve, the expansion of mobile phones will continue to grow for several years driven by this wave of rotation, and it is expected that the replacement volume will reach 15 in 2023.4.2 billion units.The penetration of new functions such as wireless charging and OLED has brought the price and volume of components. Profit forecast and evaluation recommendations.With the advent of the 5G era, the smart phone market will usher in a new wave of replacements, the improvement, promotion, application and expansion of new technologies such as OLED and wireless charging technologies. Some smart terminals will usher in a revolutionary upgrade in the future.The application of the update function of this category has extremely high requirements for the new process, which has led to the need for more 淡水桑拿网 new materials and precision functional devices to assist in smart terminal products.There is a significant improvement. We expect 19E / 20E / 21E companies to reach operating income of 256.06/311.60/396.53 ppm, an increase of 13 in ten years.80% / 21.69% / 27.26%, 2019E / 2020E / 2021E attributable to the net profit of the mother 19.49/23.26/31.980,000 yuan, an increase of 386 in ten years.7% / 19.3% / 37.5%.The company’s overall expectations correspond to a PE of 22 in 2019.5x coverage for the first time, giving a “buy” rating. Risk warning: downstream demand is lower than expected, industry competition is intensified, the impact of international expectations, and performance commitments are lower than expected.