Goodix Technology (603160): High-speed growth meets expectations Ultra-thin and LCD new products will be commercial
Event: Goodix Technology released the third quarter report of 2019, and achieved revenue of 46 in the first three quarters.
78 ppm, an increase of 97 in ten years.
Net profit attributable to mother 17.
1.2 billion, an increase of 437 in ten years.
Comprehensive financial report and performance briefing, we comment as follows.
Opinion: The company’s performance is in line with expectations, and the improvement in expenses has helped increase the net profit margin: Huiding Technology achieved revenue of 46 in the first three quarters.
7.8 billion yuan, corresponding to a single quarter of Q3 17.
92 ppm, an 83-year increase.
37%, a further increase of 7.
80%, mainly driven by the continued volume of fingerprint products under the screen.
The company’s screen fingerprint products continued to maintain a market share of more than 90% in the third quarter. Typical models include Huawei Mate 30, Xiaomi 9, vivo iQOO, OPPO Reno, etc. (gradually obtaining 85 commercial 杭州桑拿网 models). It is expected that single-quarter shipments will be aroundMore than 40 million.
In terms of gross profit, the company’s Q3 gross profit margin was 60.
79%, a slight decrease from the previous quarter.
The 15 single ones were mainly affected by the volume of new IOT products. Although the gross profit margin declined, thanks to the improvement in the expense ratio, the company’s net profit margin increased by 2 from the previous quarter.
The company’s Q3 single-season sales expenses and expenses7.
37%, a decrease of 2 from the previous quarter.
00 average value, the management expense ratio is 1.
92%, a decrease from the previous quarter.
It highlights that while the company’s revenue growth rate is good, it also vigorously optimizes internal management and improves operating 成都桑拿网 efficiency.
R & D continues to invest, and new products lead the market: Since its listing, the company has vigorously promoted research and development, and launched a leading under-screen fingerprint recognition chip in 2018 to help this year’s performance explode.
However, the company previously stopped here, and the R & D efforts in 2019 have further increased, and the R & D expenses in the first three quarters were as high as 7.
21 ppm, corresponding to single third quarter R & D expenses2.
63 ppm, an increase of 45 in ten years.
26%, a further acceleration from the previous quarter.
Thanks to high-intensity research and development investment, the company’s new products have achieved further breakthroughs: (1) In terms of under-screen fingerprints, the Q4 with the company’s ultra-thin under-screen fingerprint solution has been officially mass-produced.
At the same time, the company has also made a breakthrough in the fingerprint solution under the LCD screen, which is expected to be commercialized within the year.
The fingerprint chips under the screens of both parties will become a new growth point for the company in the future.
At the same time, the gap between the company and the competition is constantly widened.
(2) In terms of IOT products, Xiaomi launched the Mijia smart door lock in June, using the company’s fingerprint + secure MCU solution; and TWS headset, which was launched by vivo in September, launched the company’s in-ear detection + touch 2All-in-one single-chip solution, the company uses capacitive touch, according to traditional optical touch, no need to cancel window opening, small appearance restrictions, easy to waterproof and other advantages.
With the follow-up of the TWS headset market, the company will deeply benefit.
Maintain “Prudent Recommendation-A” rating: Huiding Technology’s flagship product has a clear advantage in the fingerprint chip under the screen, and then enters mass production of ultra-thin, new fingerprint products under the LCD screen, and constantly enhance its competitive advantage.
At the same time, the company is actively promoting a platformization strategy. By continuously expanding new markets and new products, smoothing the impact of a single category on changes in the company’s performance, or providing customers with integrated solutions.
Earlier, Genting announced that it plans to acquire the NXP VAS business. If the merger and acquisition is successfully completed, Genting can obtain the world’s leading audio chip and algorithm quality assets, and the audio interactive portal.
Optimistic about the long-term development of Huiding as a domestic chip design leader.
It is estimated that the company’s net profit attributable to the mother in 19/20/21 will be 22 respectively.
37 ppm; corresponding EPS is 4.
99 yuan, corresponding to the current sustainable respectively 41.
1x, maintaining the level of “Careful Recommendation-A”.
Risk warning: acquisition and integration risks, increased competition, lower unit prices, and new product development progress than expected.