19 Mar

Shennan Circuit (002916): High-end and middle-end PCB technology drives leading parts

Shennan Circuit (002916): High-end and middle-end PCB technology drives leading parts

Event: The company released the 2018 performance report to 2.

The total share capital of 8.3 billion shares is the base, and all shareholders pay a cash dividend of 7 for every 10 shares.

5 yuan (including tax), the capital reserve will be transferred to all shareholders for every 10 shares of 2 shares.

Revenue in 2018 was 76.

02 million, an increase of 33 each year.

68%; net profit attributable to shareholders of listed companies6.

97 ppm, an increase of 55 per year.


Q4 single quarter sales gross margin 24.

12% in the fourth quarter.

91%, profitability has gradually improved.

Positioning high-end and mid-end PCB products, embracing leading global customers: The company’s positioning is mainly high-end and mid-end PCB-related products with stable and reliable quality. According to the annual report, the company has become a supplier to many leading global companies, including Huawei, ZTE, Nokia, HoneywellSeoul, GE Healthcare, Bosch, BYD, Lenovo, ASE, etc. In 2018, the company won Huawei’s “Gold Core Supplier” for six consecutive years, and also ZTE’s “World’s Best Partner 2018”, Rockwell Collins “”Global Best Partner”, Changdian Technology “Best Supplier” and other presets.

At the same time, the company is also actively expanding new customers, providing too much momentum for the company’s long-term stable development.

Product upgrades, technology-driven leading categories: As a leading company in the domestic PCB field, the company is in the leading position in terms of revenue and per capita output value according to statistics from the wind industry.Continued fermentation, leading companies are expected to reach premium space: 1) In the field of PCB boards, the company will continue to strengthen R & D and replacement in the field of 5G communications (including wireless and data communications), maintain the company’s first-mover advantage, and promote the construction of Nantong’s investment and investment projects.At the same time of automation, internal factories have continuously improved the efficiency of resource allocation through technological transformation, the construction of specialized factories has gradually penetrated, and breakthroughs have been gradually made in the automotive panel market. The capacity of the Nantong factory has gradually climbed, becoming one of the company’s growth points in 19 years; 2)In the field of packaging substrates, the company will maintain the company’s advantages in market segments for many years, while expanding high-speed communication and storage packaging substrates; 3) in the field of electronic loading and unloading, focusing on expanding communications, medical, aerospace and other fields.

Pioneer in the field of national packaging substrates, leading consolidation is solid: According to the annual report, IC substrate business achieved revenue9.

47 ppm, silicon microphone is the main product of the substrate business, while fingerprint and RF module packaging substrates 杭州桑拿 have achieved rapid growth.

The annual report pointed out that the company’s Wuxi fund-raising project has an orderly progress in the construction of the substrate factory, and the development progress of key storage customers is in line with expectations. It is expected to be put into production in 2019.

Investment recommendation: Buy-A investment rating, 6-month target price of 133.

1 Yuan.

We expect the company’s revenue from 2019 to 2020 to be 97.

3.1 billion, 118.

72 ppm, net profit is 8 respectively.

7.1 billion, 12.

31 trillion, outstanding growth.

In 19 years, the production capacity of Nantong factory benefited from the smooth release, and the demand for 5G was gradually landed.

Risk reminder: PCB industry development exceeds expectations; 5G industry development exceeds expectations; 杭州桑拿网 fundraising projects fall short of expectations, etc.