Wingtech (600745): Annual report performance is in line with expectations

Wingtech (600745): Annual report performance is in line with expectations
Performance summary: The company achieved operating income of 173 in 2018.35 ppm, a ten-year increase2.48%; net profit attributable to mother is 0.6.1 billion. Facing external adverse conditions and improving profitability.The external environment has changed significantly in 2018. First of all, the company mainly focused on domestic customers in the first half of the year. The exchange rate changes have a relatively large impact on the company. Second, the expansion of passive components has exceeded expectations. This has led to uncontrollable factors leading to greater cost pressure on the company.Prompt adjustments were made to successfully expand and expand high-quality international customers and domestic leading brands. The revenue in the third quarter exceeded the total revenue of the first half; the fourth quarter revenue again refreshed the highest single-quarter revenue, making more revenue a record high. Work with Qualcomm to actively advance research and development in the 5G field and seize the opportunities ahead.The company is the only mobile ODM manufacturer in Qualcomm’s “5G Pilot” plan, and the only ODM manufacturer to do mobile phones on the Qualcomm platform. The rest are only connected to MediaTek or Spreadtrum.The company has obtained the relevant technical documents of Qualcomm 5G platform. In the coming 5G era, the company has a huge leading edge. Optimize the structure of customers and products, and gradually increase the proportion of production and procurement.We expect the company to purchase 15% and produce 30% in 2018.Because the company is in the form of ODM, the procurement and production ratios were relatively low before, mainly based on the model of collecting R & D costs from customers. For example, Xiaomi’s red rice basically has a zero procurement ratio. The follow-up company increased the capacity allocation of major international customers, thereby increasing partsThe proportion of purchases, followed by the same customer’s purchase and production of products with a high proportion, once the replacement volume drops, but it will increase significantly.We expect that the company’s future product purchase ratio will be more than 50%, and the production ratio will be more than 70%. The company plans to acquire Ngoc Semiconductor and enter the field of automotive semiconductors.The current semiconductor device value for bicycles is about US $ 350. In the future, with the increase in the penetration of new energy vehicles and the popularity of connected vehicles in the 5G era, the value of bicycles will be more than US $ 1,500, and the space is huge.At present, the company’s car-grade products have passed the relevant AEC certification, and the products involved are ESD protection, TVS and MOSFET applications in vehicle safety, power, lighting, steering and other system fields.Mainly national first-class companies, some Infineon, STMicroelectronics, etc., customers cover international mainstream Tier1 manufacturers and domestic mainstream car companies. Profit forecast and rating.Without considering the acquisition, we expect the company’s EPS for 2019-2021 to be zero.97, 1.32, 1.83 yuan.Considering that after the company’s acquisition of Anshi Semiconductor, Wingtech and Anshi Semiconductor have a high 武汉夜网论坛 degree of customer relevance in 5G communications, consumer electronics, and automotive semiconductors, with significant synergies. Maintain a “Buy” rating. Risk warning: 5G mobile terminal product development is not as expected risk; acquisition progress is not as expected risk.