Dongshan Precision (002384): Reduced performance due to accrual of holding losses, 2020 youth loaded into battle

Dongshan Precision (002384): Reduced performance due to accrual of holding losses, 2020 youth loaded into battle

I. Overview of the event The company announced that it was originally expected that the net profit returned to mothers in 2019 would increase by 30% -50%, or 10.
.

54-12.

17 trillion, now adjusted to a 10% -13% decline in ten years, or 7.
.

06-7.

The decrease of US $ 3 billion was mainly due to the company’s one-time provision for storm impairment losses. After this accrual, the book value of receivables, equity investments and other assets related to the storm group decreased to zero.

In 2019, the company made a total of 5 provision for impairment.

800 million.

Second, the analysis and judgment of the flexible board + hard board industry is prominent, and continues to promote the company’s growth. The company started with precision manufacturing. In 2016, it entered the forefront of the global FPC through the acquisition of Mflex.

According to Prismark data, in 2018, the company’s FPC ranked among the top three in the world, with hard board + soft board domestic investment ranking first, and Mflex + Multek’s strong combination continued to drive the company’s performance growth.

In 2019, the company’s PCB business is expected to have revenues of more than 14 billion and a net profit of more than 1.2 billion.

In 2020, Mflex will continue to benefit major customers with new features and company expansion and enhancements. The introduction of major Multek business customers will smoothly integrate structural adjustments and bring growth momentum.

5G is actively deployed. The filter technology industry will initially achieve 5G commercialization by 2020. The company will quickly reserve communications product technology and deploy new production capacity for communications products. In the field of new products such as ceramic dielectric filters, the company 杭州夜网论坛 continues to expand research and development investment.Already in the industry leading level.

Third, investment recommendations We expect net profit for 2019/2020/2021 to be 7, respectively.

18/17.

48/22.

55 ppm, corresponding EPS is 0.

45/1.

08/1.

40 / yuan, selected Pengding Holdings, Shennan Circuits, Jingwang Electronics, and Luxion Precision as comparable companies. Based on the company’s 32 times price-earnings ratio in 2020, the company was given a “recommended” rating for the first time.

Fourth, risk warning: downstream demand is less than expected, trade frictions intensify, and competition intensifies.