Wingtech (600745) 2019 Third Quarterly Report Review: Q3 Performance Exceeds Expectations Q4 Consolidation Is Expected to Accelerate Growth

Wingtech (600745) 2019 Third Quarterly Report Review: Q3 Performance Exceeds Expectations Q4 Consolidation Is Expected to Accelerate Growth
New customers such as Samsung accelerated the release of ODM orders, and the company’s headquarters underwent financial pressure while welcoming rapid growth. At the same time, the company’s acquisition of Anshi progressed smoothly. It is expected to consolidate in 19Q4, inject new momentum for the company’s development, and maintain the “buy” level. The introduction of new ODM customers accelerated, and the company’s performance in the first three quarters exceeded the guidance limit.The company achieved revenue of 218 in the first three quarters of 2019.7 trillion, +98 a year.7%, net profit before and after returning to mother is 5.3/5.10,000 yuan turned losses into profits (the same period last year was -1.7 / -1.900 million), and exceeded the upper limit of performance guidance.Since 2018, the company has gradually introduced new customers such as Samsung and OPPO. While achieving a steady increase in the amount of reorganization, the manufacturing and procurement ratio has increased rapidly, driving the company’s revenue generation and profitability to significantly increase.In a single quarter, Q3 had a single quarter revenue of 104.400 million yuan (+87 per year).1%), net profit attributable to mother 3.3 ‰ (quarterly +41 times), showing a quarterly expansion trend (Q1 / Q2 revenue is 48.9/65.500 million, performance is 0.4/1.500 million US dollars, we expect to increase the rapid release of ODM orders by customers such as Samsung, the company’s revenue and profits will maintain a rapid growth trend. Interest expenses grew rapidly, but the company’s overall period expense rate was well controlled.In the first three quarters of 2019, the company’s gross profit margin was ten years +1.04% to 8.0%, mainly benefit from the improvement of profitability brought by the optimization of customer structure. On the expense side, the company has increased a lot of expenses for the acquisition of Anshi assets (as of Q3 2019, the interest resistance has reached as high as 6.8 billion yuan), and the interest expenses in the first three quarters were as high as 3.5 ‰, meanwhile, the company’s sales / management / R & D is +29 each year.8% / 45.2% / 39.5%, but benefited from the rapid expansion of the company’s overall period, the expense ratio was extended by -2.Three.In addition, the company is accelerating the divestiture of its substantial business, which is expected to return to total 19.US $ 600 million, which is currently progressing in an orderly manner, is expected to ease the financial pressure brought by the acquisition of Anshi. Anshi is expected to consolidate in 19Q4, and is optimistic that its domestically-made substitution will accelerate its growth.The company’s acquisition of 80% stake in Ace Semiconductor is currently going smoothly. We expect to consolidate in Q4 2019.The Anshi main track is a power device. At present, domestic power device demand is about US $ 14 billion, but the self-sufficiency rate is less than 20%, and domestic demand for replacement is strong.As the world’s leading power device manufacturer, Anshi is committed to helping the domestic supply chain accelerate the realization of autonomous controllability. At present, its share in domestic clients such as Huawei is rapidly increasing. Risk factors: M & A integration is less than expected; downstream demand is less than expected. Investment suggestion:西安耍耍网 Samsung and other new customers accelerate the release of ODM orders, and the company’s headquarters business accelerates growth. Considering that Anshi is expected to smoothly consolidate in 19Q4, we raise the company’s EPS forecast for 2019/20/21 to 1.19/2.09/2.60 yuan (previous forecast was 0.98/1.30/1.82 yuan), maintain “Buy” rating.