Haoyu's profit has room for upward adjustment

Sunny Optical announced its shipments in June on July 11. In June, shipments of mobile phone lenses were 87.27 million pieces, up 83.0% year-on-year and 13.5% quarter-on-quarter, significantly exceeding market expectations. 3.09 million pieces, up 23.2% year-on-year and 2.0% quarter-on-quarter; handset camera module shipments were 35.46 million pieces, up 35.8% year-on-year and 4.1% quarter-on-quarter; micro-instrument shipments were 29.55 million pieces, Increased by 77.9%, an increase of 42.6% from the previous month.

Benefiting from the increase in market share, Haoyu’s shipments of mobile phone lenses in June were better than our expectations. The shipments of mobile phones in June reached a year-on-year increase of 83.0%. In the first half of this year, the shipments of mobile lens lenses totaled 40.17 million. A year-on-year increase of 54%, significantly surpassing our expectation of a 39% year-on-year increase in the first half of the year. The company's operating data for the first half of the year is bright, we believe that the main benefit from the Android market share has increased, plus the expected second half of the 7P (7 plastic lenses) Will gradually mass production, so we increase the revenue forecast of the mobile phone lens segment for the year to 5.09 billion yuan.

Shipments in the second half of the year are worth optimistic

The shipments of mobile phone camera modules continued to grow year-on-year. The shipments of mobile phone camera modules increased by 35.8% year-on-year and 4.1% quarter-on-quarter, mainly due to the increase in the market share of the flagship mobile phones in the Mainland. Multi-mobile phone manufacturers adopt dual camera and three camera designs, including Huawei and OPPO respectively launch three-shot mobile phone P20 PRO and Find X. We think this will help improve the penetration rate of three-shot, optimistic about the shipment in the second half, predict this part The annual growth rate of revenue will slow down, but the year-on-year growth rate is still 33%.

We believe that the slowdown in vehicle lens shipments in the first half of the year was mainly due to the adjustment of inventory by some customers. According to Zhiyan Consulting, the global automotive lens market reached 85.38 million in 2017, with an average annual compound growth rate of 30%. Sunny Optical is currently global. The largest car lens manufacturer, the global market share is as high as 30%. With the development of ADAS, the demand for car lens will pick up in the second half of the year, we predict that this part of the revenue will increase by 29% year-on-year.

We believe that Haoyu has always been financially sound. There is no evidence to show that the company has whitewashed financial data. It is not necessary to worry too much about the financial fraud of the company because of the short-selling GMT Research. We have raised the profit forecast and set 2019 according to the DCF model. The annual target price is 187.3 yuan, corresponding to the price-earnings ratio of 45.9/34.2 times in 2018/19, adjusted to the buy rating.

2016 GoodChinaBrand | ICP: 12011751 | China Exports