Dongshan Precision (002384) annual report comment: rapid growth in performance is expected to continue to benefit 5G construction

Dongshan Precision (002384) annual report comment: rapid growth in performance is expected to continue to benefit 5G construction

The core point of view is the rapid growth of performance and the steady improvement of profitability: the company achieved revenues of 19.8 billion yuan in 2018, an increase of 29% and net profit attributable to its mothers8.

11 ‰, an increase of 54%, the gross profit margin reached 16%, an increase of 1 over 17 years.

6 averages, net profit margin 4.

1%, an increase of 0 from 17 years.

7 single, profitability improved steadily.

Revenue and net profit for the first quarter of 19 were 44.

9 and 20,000 yuan, an increase of 26% and 31% each year.

The company expects net profit for the first half of the year3.


4 trillion, single quarter in the second quarter 1.


40,000 yuan, an increase of 75% -121% in ten years.

  PCB revenue growth increased by 60%, contributing the company’s main growth driver: the company’s PCB business revenue in 2018 was 10.2 billion US dollars, a 60% increase, accounting for 52% of total revenue, driving the company’s rapid growth

1) MFLX has a maximum revenue of US $ 8.8 billion, an increase of 38%, and a net profit of 8%.

2.4 billion.

FPC customer orders increased, Yancheng production base was put into production, and the release of new capacity effectively relieved the company’s capacity increase.

The company is expanding from mobile phones to new products such as tablets / wearables, and the market space continues to expand.

2) The acquisition of Multek was completed. On August 12, 2018, Multek contributed revenue14.

33 ppm, contributing a net profit1.

07 billion.

The company entered the high-end PCB market through the acquisition of Multek, incorporating the company’s hard-board business blanks, having international major customers in the fields of communication substrates, enterprise-level servers, etc., and forming synergies with Dongshan’s reorganized filter and other businesses to achieve mutual introduction of customers.

The company will increase its profit margin through the integration of factories and adjustment of product structure.

With the vigorous deployment of 5G at home and 深圳spa会所 abroad, Multek is expected to usher in high growth.

  Dielectric filters have been supplied in batches and are expected to benefit from 5G construction.

The company has strong competitiveness in substrate cavity filters, and through the holding of 70% of Aifu Electronics, it has cut into ceramic dielectric new materials and other businesses to achieve its layout in the field of new materials for 5G products.

In the first quarter of 2019, Aifu electronic ceramic dielectric filters have started to be supplied to major customers in batches.

  Financial Forecast and Investment Suggestions We predict that the company’s EPS in 19/20/21 will be 0.



61 yuan (previous forecast was 1 for 19/20).


42 yuan, adjusted the growth of FPC, multek, touch and other businesses according to the annual report, and lowered the financial data), based on a comparable company giving the company a 27-year P / E estimate of 19 times, corresponding to a target price of 24.

03 yuan, maintain BUY rating.

  Risks suggest macroeconomic fluctuations, FPC gross margin fluctuations, and small-pitch LED penetration rates are less than expected.