Peng Ding Holdings (002938): 5G Mobile Millimeter Wave Advances to Accelerate LCP Industry to Prosper
Event: The company released the third quarter report of 2019, and the first three quarters of 2019 achieved revenue of 173.370,000 yuan, an increase of 0 in ten years.40%, net profit attributable to mother 17.20,000 yuan, an increase of 8 in ten years.97%. Analysis and judgment: In the second half of the year, the production capacity was maximized, and the gross profit margin rebounded from the previous quarter. In Q3 2019, the company achieved revenue of 79.99 ppm, a ten-year increase2.71%, an increase of 56.79%, Apple-based mobile phone manufacturers usually release new products in the second half of the year, driving the company’s production capacity to expand and increase, and high revenue growth.Q3 single quarter gross margin was 24.38%, down by 1 every year.8 units, an increase of 3 from the previous quarter.46 units.We judge that the decline in Q3 gross profit margin was mainly due to structural changes in the distribution of new Apple products, that is, the lower sales of the lower-priced iPhone 11 and the appointment of internal customers such as Huawei.The increase from the previous quarter is expected to be the peak season for new mobile phone sales in the second half of the year, and the company’s capacity growth has increased significantly. Mobile phone motherboards are moving from HDI to SLP, and FPC requires a logical jump-type carrier board (SLP) to be a high-density board (HDI) upgrade because the manufacturing process is close to the IC carrier board name.Typically, the limit line width and line spacing will be lowered from 40 / 45um to 30 / 35um, increasing the panel wiring density to change the placement area, freeing up space for its battery and more cameras.Apple 4G mobile phones, Samsung 5G mobile phones have begun to use SLP technology in batches, domestic brands are trying to follow up.The SLP motherboard benchmark doubles the price of HDI and has a smaller area, which will drive a wide range of functional components such as cameras, antennas, wireless charging, buttons, and charging interfaces to use LCP and FPC, and the demand for flexible boards will show high industrial growth.The company has the powerful strength of SLP and FPC and is the main supplier of Apple SLP and FPC. It is currently expanding to internal mobile phone brands. It is expected that in the wave of 5G replacements, it will fully benefit from the technological dividend brought by industry upgrades. It is expected that the iPhone will support 5G millimeter wave in 2020, and the demand of the LCP industry will reach a new level. At present, the majority of 5G in the US mainstream telecommunications operators Verizon, AT & T, Sprint, and TMobile are mainly concentrated in 2.5GHz, 28GHz, 39GHz. At the same time, CNBC reports that the FCC (United States Federal Communications Commission) plans to launch the largest spectrum auction in the history of the United States from December this year. Operators can bid on 37GHz, 39GHz and 47GHz millimeter wave frequency resources.Looking at the 5G spectrum resources released by the United States, the main push is the construction of millimeter wave networks.The US market is Apple ‘s largest source of revenue. We estimate that 5G iPhones are expected to support millimeter-wave functions in 2020. It is expected that a 5G millimeter-wave phone can integrate up to four AiP modules.AiP modules are dispersedly arranged around the mobile phone to achieve 5G millimeter wave signal connections in different handholding postures, so the signal needs to be transmitted from the AiP module to the motherboard through a low-loss soft board. From the perspective of the existing technology route, the LCP software is preferred.board.The company has accumulated a lot in the field of LCP flexible board and is expected to benefit. Investment suggestion We maintain the company’s profit forecast for the company. It is estimated that the company’s net profit attributable to its mother in 2019-2021 will be 28.9.9 billion, 36.9.2 billion, 47.34 ‰, the annual growth rate is 4 respectively.63%, 27.35%, 28.20%; corresponding EPS is 1.25 yuan, 1.60 yuan, 2.05 yuan.Taking into account our latest research criteria, the progress of millimeter wave mobile phones is expected to exceed market expectations, and the LCP industry chain will usher in prosperity. We have raised the company’s target price from 48 yuan to 56 yuan, which is equivalent to 35 times PE in 2020.Buy “level. Risks indicate macroeconomic growth rate and systemic risk; customers are concentrated, 重庆耍耍网 core large customers are less adjusted than expected; downstream application areas such as 5G smartphones have moved more than expected, and LCP new technology is expanding faster than expected.