Han’s Laser (002008): Expansion of consumer electronics demand, comprehensive gross profit margin under short-term pressure
Company status We recently visited major domestic laser equipment and fiber laser manufacturing companies, and updated the status of Han’s laser business.
We believe that the downstream demand pressure of Han’s laser consumer electronics in 2019 penetrates, and the comprehensive gross profit margin is under pressure, and in 2020 it is expected to usher in an inflection point.
Comment on the short-term pressure on the consumer electronics business, and look forward to 5G commercial changes.
Demand for consumer electronics in 1H19 remains sluggish, coupled with limited product innovation by major downstream customers in 2019 and declining capital expenditures, we expect that Han’s lasers in 2019 will come from customer revenue or decline by about 20%.
Looking ahead, through the commercialization of 5G, major smart phone manufacturers may launch new-generation products in 2020, and capital expenditure is expected to usher in growth.
Power batteries, panels and other downstream are still the main growth drivers.
From the perspective of the downstream economy, power lithium battery and panel (especially OLED) manufacturers’ upward capital expenditures have driven the high demand for related equipment.
We expect that in 2019 Han’s laser-powered lithium battery equipment and OLED panel equipment revenues are expected to achieve 100% and 200% growth, respectively.
The PCB industry is highly correlated with the consumer electronics boom. It is expected that the related equipment revenue will increase in 2019, and in 2020, it is also expected to benefit from the growth in demand brought by the promotion of 5G.
Demand for high-power laser processing equipment has steadily increased.
With the increase of fiber laser power, sheet metal processing thickness and efficiency, the application scenarios of lasers in the field of material processing continue to develop.
In particular, since 2H18, the cost of imported fiber lasers has dropped significantly, and the demand for laser processing equipment for industrial enterprises has steadily increased.
What do we expect in 2019?
For 20 years, Han’s laser high-power laser equipment is expected to maintain steady growth.
Organizational structure adjustment and management efficiency improvement.
In 2H18, Han’s Laser adjusted the organizational structure, further refined financial accounting and performance evaluation from the business unit to each product line, and formulated corresponding marketing strategies according to the development stages of different industries and different customers.
In the long run, this will help improve the company’s 北京夜网 management efficiency, asset quality and overall competitiveness.
It is recommended to take into account the company’s consumer electronics business in 2019 under pressure and the change in product structure leading to a decline in comprehensive gross profit margin. We maintain our company’s 2019 / 20e profit forecast down by 17% and 4.
8% to 14.
500 million and 20.
10,000 yuan, currently corresponding to 2019 / 20e 24.
5x / 17.
7xP / E.
We maintain our target price of 47.
3 yuan, corresponding to the target P / E of 35x / 25x 2019 / 20e, which has a gradual increase of 42% compared with the current one. Maintain the recommended level.
Risks Downstream demand is less than expected, and industry competition has intensified.