Sunlord Electronics (002138): 5G + Automotive Electronics Drives Steady Revenue Growth

Sunlord Electronics (002138): 5G + Automotive Electronics Drives Steady Revenue Growth
Core viewpoints: 1) The company has deeply cultivated the field of chip inductors and gradually grown into a domestic leader in this field.Based on this, we have developed a series of resistors, LTCC devices, sensors, high-precision ceramics and other products.The long-term company’s market share has continued to increase. In 2017, the company’s market share in the global inductor market was 6.7%, ranking fifth. 2) R & D capabilities and price advantages Found the company’s core competitiveness.Scoring with domestic counterparts, the company’s research and development has maintained rapid growth, leading the peers in terms of expansion strength, and has given the company a leading edge in technology.Compared 苏州夜网论坛 with foreign counterparts, the company has managed the production cost and expenses effectively and achieved absolute price advantage.At present, under the leading homogeneous and non-inductive expansion plan, the company once again expanded the production of inductive power by a fixed increase, which will help the company increase its market share. 3) On the demand side, the business of 5G + automotive electronics security companies continues to grow steadily.Breakthrough, 5G will increase the demand for the company’s inductors and LTCC products on the mobile phone and substrate sides. After years of hard work, the company has now entered the international mainstream automotive electronics integrator supply chain, and the company’s automotive electronics will enter the harvest period in the next few years.At the same 成都桑拿网 time, through the strong rise of domestic mobile phone brands and ZTE, the acceleration of the domestic replacement process caused by the Huawei incident will also promote the company’s sales growth. 4) The company operates stably.The company’s current interest rate is low, inventory turnover is fast, operating cash flow is abundant, and the ability to recover funds is strong.And the company’s top five customers in 2018 accounted for 19.46%, the proportion of the interests of the largest customer is only 9.83%, relatively dispersed. 5) Profit forecast and investment grade: Through the vigorous development of 5G, automotive electronics and other downstream, the company’s business will be further heavy in the next two or three years.We predict that the company’s EPS for 19/20/21 will be 0.61/0.80/1.04 yuan, the corresponding PE is 36.52/27.98/21.46X.Considering that the company is the absolute leader in the chip inductor market segment, it is estimated to give a certain premium.Covered for the first time, giving “overweight” rating. 6) Risk warning: The downstream demand of the inductor is lower than expected; the technology development progress and market expansion of new products are lower than expected.