The performance growth brought by price increase alone cannot give market confidence. After Shengyi Technology announced its third-quarter results, the stock price hit the limit
Shengyi Technology disclosed its third-quarter report on October 30. The report shows that the company achieved a total operating income of 9.47 billion yuan in the first three quarters of 2019, a year-on-year increase of 5.5%; achieved a net profit attributable to shareholders of 1.04 billion yuan, a year-on-year increase of 28.7%; and earnings per share was 0.48 yuan. During the reporting period, the company's gross profit margin was 26.8%, an increase of 6.5 percentage points year-on-year, and the net profit margin was 11.8%, an increase of 2.3 percentage points year-on-year.
Among them, the operating cost in the third quarter was 6.93 billion, a year-on-year decrease of 3%, and operating income increased by 5.5% year-on-year, driving a 6.5% increase in gross profit margin. The period expense ratio was 12.9%, an increase of 3.2% from the previous year, which dragged down the company's performance. Operating cash flow rose sharply by 83.4% to 1.4 billion. What is more interesting is that the stock price of Shengyi Technology did not show an upward trend due to the steady growth of performance, but the stock price fell sharply to the limit. Judging from the holding data of the Dragon and Tiger List, northbound funds and institutional funds are mainly sold.
Shengyi Technology is mainly engaged in the design, production and sales of copper clad board and adhesive sheets, printed circuit board . The products are mainly used for the production of single and double-area multi-layer circuit boards. The customers are mainly downstream PCB enterprises.
In the single quarter, the company's Q3 copper clad plate and adhesive sheet revenue was 2.068 billion yuan, a year-on-year increase of 9%. The company's high-frequency high-speed products revenue in the third quarter exceeded 100 million yuan, achieving rapid growth month-on-month. It is estimated that the PCB board business revenue was 716 million yuan, a year-on-year increase of 24%, and the net profit margin exceeded 15%. Due to the differences in manufacturing of 5G and high-end products, the unit price of PCB board shipments has increased significantly, which has brought the company an increase in revenue, gross profit margin and profit.
However, such performance is slightly inferior to Shenzhen South Circuit and Shanghai Electric Power Co., Ltd. , which belong to the same sector.
public information shows that Shennan Circuit achieved operating income of 7.658 billion yuan, an increase of 43.5% year-on-year; net profit attributable to shareholders of Shennan Circuit was 867 million yuan, an increase of 83.4% year-on-year; basic earnings per share were 2.58 yuan. PCB leader Shanghai Electric Co., Ltd. performed even stronger in the first three quarters, with total operating income of 5.01 billion yuan in the first three quarters of 2019, a year-on-year increase of 30.2%; net profit attributable to shareholders of 850 million yuan, a year-on-year increase of 122.1%; earnings per share were 0.5 yuan. During the reporting period, the company's gross profit margin was 29.9%, an increase of 7.1 percentage points year-on-year, and the net profit margin was 17%, an increase of 7.0 percentage points year-on-year. In addition to the performance growth of
, which mainly relies on price increases and the growth rate is inferior to that of peers, the main business of Shengyi Technology 's headquarters, has also entered a bottleneck period. Shengyi Technology has insufficient production capacity in the field of high-end copper clad plates. In 2017, the company just broke through high-frequency copper clad plate technology and started mass production in 2018. However, high-frequency copper clad plate has a production capacity of only 1 million yuan. Compared with the domestic copper clad plate production in 2018 of 88.6036 million square meters, the market share of Shengyi Technology is only 1.13%.
In addition to the bottleneck period of high-frequency copper clad plates, Shengyi Technology is currently facing the problem of emergency production capacity expansion of PCB business. Financial data shows that at the end of the third quarter of 2019, the company's fixed assets increased to 4.324 billion from 3.456 billion at the end of 2018; at the same time, long-term loans increased from 540 million to 877 million.
In terms of cost, in the first and third quarters of 2019, the total operating cost was 8.235 billion yuan, an increase of 1.75% year-on-year, lower than the growth rate of 5.53% year-on-year; the operating cost was 6.931 billion yuan, a decrease of 3.02% year-on-year, and the operating cost accounted for 84.17% of the total cost. From this point of view, the profit growth of Shengyi Technology in the first three quarters mainly comes from cost control and the increase in PCB prices.
In short, profits come from the industry prosperity brought by 5G rather than the endogenous increase in volume and price. This is questionable where the future performance growth point is.
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-