Anjie Technology (002635): Metal parts dragged down 3Q19 performance Next year’s Apple functional parts worth looking forward

Anjie Technology (002635): Metal parts dragged down 3Q19 performance Next year’s Apple functional parts worth looking forward

The 3Q19 results were lower than our expectations. Anjie Technology announced the third quarterly report: revenue from January to September 21.

9 ‰, 12 years ago.

7%; net profit attributable to mother 3.

3 ‰, the ten-year average of 22.

4%, lower than our developing country expectations, mainly due to the sluggish metal parts business.

  Corresponding to 3Q19 single quarter revenue8.

0 million yuan, a ten-year average of 22.

7%, net profit 1.

5 ‰, a ten-year average of 19.

0%.

  The poor performance in the first three quarters and 3Q19 was mainly due to the continued downturn of Weibo’s precision metal parts business, and the transfer of mobile phone brands such as downstream OVM was also quite dull, which dragged the company’s performance to break through.

  Development trends Apple’s feature parts are worth looking forward to next year.

1) Even Apple’s new machine performed well this year, but the lack of innovation led to pressure on the functional ASP.

Looking forward to 2020, we expect that Apple’s cheap iPhone 1H20 SE and 2H20 5G iPhone will bring leading high prosperity, especially the changes in 5G new machine functions and structural design, which will bring new opportunities for functional parts.

  2) In addition to traditional functional parts, Anjie acquired Weibo Precision’s 南宁桑拿 ability to obtain small metal parts. We believe that Apple will be gradually introduced.

3) Taking into account the increase in demand for functional parts and the introduction of small metal parts, we expect that Anjie’s ASP in the new Apple machine in 2H20 is expected to increase by more than 30%.

  Multi-party layout of wireless charging, ready to go.

1) In the past few years, Anjie has built a wireless charging full industry chain solution of “magnetic material + die cutting + coil” through self-research and mergers and acquisitions. This year, it has even performed well at Huawei Mate. We believe that it will gradually follow customers in the futurethe amount.

2) In the field of on-board high-power wireless charging, Anjie also cooperates with domestic new energy vehicle manufacturers in research and development to 南京夜网 continuously improve the program and safety. We expect that there will be a breakthrough next year.

  The new energy vehicle business has steadily advanced.

Anjie is the main supplier of structural parts such as Tesla’s new energy vehicles, battery storage batteries and other battery connecting pieces. The Tesla Shanghai plant will be put into production. We expect the new energy vehicle business to also see steady growth.

  Earnings forecasts and estimates take into account the poor performance of the metal parts and functional parts business, lowering the 2019 / 20e EPS by 22% / 19% to 0.

64/0.

84 yuan.

Currently corresponds to 2019 / 20e 22.

1/16.

7 times price-earnings ratio.

Maintain Outperform rating and consider lower performance to cut target price by 10% to 19.

00 yuan, corresponding to 2019 / 20e 29.

8/22.

5 times price-earnings ratio, compared with the current 35% upside.

  Risk Smartphones are less than expected; wireless charging penetration is less than expected.