Han’s Laser (002008): 1H19 performance improvement in line with expectations Expectations of equity incentives boost confidence
1H19 results are in line with our expected 1H19 results: revenue 47.
3 ‰, the ten-year average of 7.
3%; net profit attributable to mother 3.
80,000 yuan, corresponding profit of 0.
36 yuan, 62-year average of 62.
7%, net profit after deduction 3.
4 ‰, 57 years ago.
2%, in line with the performance report.
In the single quarter, 2Q19 revenue decreased by 23 quarterly.
6% to 26.
1 ppm, reducing net profit by 66.
5% to 2.
Changes in product structure and intensified competition in the industry have prolonged the gross margin.
In 1H19, the company’s product structure changed: a relatively high gross profit margin of the consumer electronics business17.
7% to 8.
8 ppm, every 5 inches of high-power laser business revenue.
4% to 11.
3 ppm, PCB reduction by at least 37.
6% to 4.
200 million; meanwhile, other small power, panel and new energy businesses increased by 7.
8% / 7.
5% / 125.
Taken together, 1H19’s overall gross profit margin was 33.
5%, down by 6 per year.
The expense ratio increased during the period, and cash flow improved.
In 1H19, the company’s sales / management / R & D / financial expense ratios rose by 0.
2ppt; At the same time, it increased by about 1 due to partial equity disposal.
Non-recurring gains and losses of US $ 9 million resulted in a high net profit margin in 1H18; the company’s net profit growth in 1H19 decreased by 11.
9ppt to 8.
The company’s net cash flow from operating activities was 3.
200 million, 4 more than the same period last year.400000000.
Development Trend Equity incentive plans focus on long-term development, which is helpful to boost confidence.
The company also announced the budget of the equity incentive plan, and plans to grant a budget of no more than 50 million shares to 1,336 incentive objects, accounting for 4.
The stock exercise price is 30.
57 yuan / share, the three-phase grant condition is 2020/21/22 deducted non-net profit compared to 2018 (14.
5 ppm) growth of not less than 5% / 15% / 30% respectively; gradually need to amortize equity incentive expenses3.
We believe that the company’s initial fair incentive plan covers a wide range, the costs are generally controllable, the unlocking conditions and the exercise price are reasonable, which will help boost market confidence.
We expect the company performance to return to the growth channel in the future.
The company also announced that the 1-9 month 2019 net profit interval will be reduced by 65% -55%, corresponding to the 3Q19 interval instead of 43% -69%; under the laser industry down cycle, we estimate that the company’s net profit in 2019 will decrease by 49%.
Looking forward, the 5G commercialization every year in 2020 will drive consumer electronics updates and upgrades, and the company’s overall profitability will recover. We expect the company’s earnings to return to the growth track.
Earnings forecast and forecast We maintain the company’s 2019/20 profit forecast unchanged, and the company currently expects to correspond to 2019/20 37.
8 times P / E.
We maintain a neutral rating of 34.
The target price of 21 yuan corresponds to 41/25 times the 2019/20 target P / E, which is 9 compared with the current progress.
深圳桑拿网 Risks The completion of projects under construction is prolonged.