'Impact' Fenghua Hi-Tech's share price collapsed? The government investigated the price increase of MLCC;

1. Fenghua Hi-Tech's performance is good, why is the stock price crashing? The government began to investigate the impact of MLCC price increase; 2. The company's Q2 season decreased by 6.18%, TDDI products are expected to be mass-produced before the end of the year; 3. PCB business output continues to climb, In the first half of the year, the net profit of Shennan Circuit increased by 11% year-on-year; 4. The production scale expanded, and the net profit of Dongshan Precision in the first half of the year increased by 117.93%; 5. With the power management business as the core, the semi-annual net profit of Desai Battery increased by 16% year-on-year; The Ministry of Commerce has blocked the technology of 44 Chinese enterprises! Hikvision is not on this list; 7. Yingtang Zhikong plans to invest 75 million yuan to jointly set up Yingtang Optoelectronics, the main 3D glass;

1. Fenghua Hi-Tech's performance is good, why is the stock price crashing? The government began to investigate the impact of MLCC price increases;

According to industry sources, in recent days, MLCC has fallen in the spot market, many agents began to cut prices, and the signs of smashing the goods were alleviated. In addition, the government sent a letter requesting an investigation. The situation of component stocking, the whole MLCC price increase began to slow down.

Affected by this impact, China's MLCC leader Fenghua Hi-Tech's share price continued to decline, in just three days, Fenghua Hi-Tech's total market value evaporated more than 2 billion. On July 31, Fenghua Hi-Tech stocks suffered a flashback, closing down the limit. The publicly disclosed information revealed that the short-term structure of hot money has become an important reason for the collapse of Fenghua High-Tech's stock price. On August 1st and August 2nd, Fenghua Hi-Tech stock did not improve.

(July 31, Fenghua High-Tech stock price fell off the cliff)

Since 2018, Fenghua Hi-Tech has gradually increased the price of resistance and MLCC. Every time the price increases, it will definitely build confidence for investors. The stock price has ushered in a small increase. According to market news, on July 30, Fenghua Hi-Tech once again announced a large adjustment of resistance. Unit price, of which the 0402J model is up by 42.28%, and the 0603J model is up by 72%.

Fenghua Hi-Tech Board Secretary told the micro-network that Fenghua Hi-Tech has had multiple price increases since 2018, and the overall price increase has not been counted.

Some investors said that the market saw the price increase of Fenghua Hi-Tech, but the day after the news of the price increase, Fenghua Hi-Tech's share price suffered a flashback, which is obviously unreasonable, which hides many factors.

Fenghua Hi-Tech released the announcement of the revised forecast on the evening of July 6. It is estimated that the net profit attributable to shareholders of listed companies will reach 405 million yuan to 440 million yuan in the first half of the year, an increase of 262.61% to 293.95%. The company previously expected net profit of 2.8 in the first half of the year. 100 million yuan to 320 million yuan.

Affected by the sharp increase in performance expectations, Fenghua Hi-Tech stocks gained 7 consecutive years from July 9 to 17, with a cumulative increase of more than 50%. Some investors analyzed that after a rapid pull-up, Fenghua Hi-Tech accumulated a large number of shares in the stock price Short-term profit-taking, and the profit-taking pressure may be one of the important factors that constitute the collapse of the stock price on July 31.

In addition, there are the following factors affecting the stock price of Fenghua Hi-Tech.

First, on July 26, the government sent a letter requesting an investigation into the impact of component price increases on the industry.

Since the second half of last year, due to smartphones, automobiles, AI, mining, 5G, etc., passive devices are in short supply, and the shortage of stocks is serious. The MLCC produced by Fenghua Hi-Tech is one of the 'leaders' of out-of-stock prices. According to a survey conducted by the micro-grid reporter, the market demand for mid-range capacitor resistors is not so tight. On the one hand, the original factory is restricting shipments, and on the other hand, the joint agents are smashing the goods, causing the price of MLCC to skyrocket. Let the downstream terminal manufacturers' product profits almost wipe out, even at a loss.

On July 26, Shenzhen Longgang District Economic Promotion Bureau issued a letter on the questionnaire on the impact of fluctuations in the electronic components market on the industry. From this point of view, the price fluctuations in the electronic components market have been paid attention to by relevant government departments.

Second, the financial big mistake received a warning letter, the chairman, the financial leader changed

In addition, on July 25, the Guangdong Provincial Securities Regulatory Bureau issued a warning letter to its company and the company's current or current six-member executives due to major accounting errors in Fenghua Hi-Tech.

According to the investigation by the China Securities Regulatory Commission, in December 2015, Fenghua Hi-Tech will transfer the receivables of 8.504 million yuan from Guangzhou Xinde Electronics Co., Ltd. and Guangzhou Tianhe High-tech Industrial Development Zone Huali Technology Development Co., Ltd. to third-party companies. The transfer price is 6,803,200 yuan. In January 2016, Fenghua Hi-Tech will transfer the original price of the debts of Guangdong Xinyu Financial Information Technology Co., Ltd. and Guangzhou Yali Electronics Co., Ltd. to a third-party company of 54.686 million yuan. In December 2017, Fenghua Hi-Tech repurchased the debt of RMB 546.86 million to the third-party company at the original price, and paid the credit repurchase payment in February 2018.

However, the above-mentioned transfer of creditor's rights has not occurred in substance. And the debt receivables at the time of transfer have been expected to be difficult to recover on time, resulting in significant accounting errors in Fenghua Hi-Tech's 2016 financial statements. After retrospective restatement, Fenghua Hi-Tech's 2016 net return from the mother's net profit Before the adjustment, the 139 million yuan was changed to the adjusted 86.116 million yuan, and the reduction was 52.795 million yuan.

Fenghua Hi-Tech held a meeting of the president's office on March 1, 2016 to determine the disposal plan for the total of 63.19 million yuan of receivables from four companies including Guangzhou Xinde Electronics Co., Ltd.. Thereafter, it was again on December 12, 2016. On December 26, 2017, the President's Office Meeting and the Party Committee's special meeting were held to study and determine the follow-up treatment plan for the above matters. The above resolutions were not disclosed.

On April 8, 2018, Fenghua Hi-Tech held the 4th meeting of the 8th Board of Directors and the 2nd meeting of the 8th Board of Supervisors in 2018, but did not disclose the notice of the meeting resolution in time, and did not make additional disclosure until April 28, 2018.

The Guangdong Regulatory Authority pointed out that Feng Huagao was the chairman of the board of directors, Xing Jianchao, the current president Wang Jinquan, and the then financial chief Liao Yongzhong should bear the main responsibility for major accounting errors; the current director Li Zezhong, Xing Jianchao, the current president Wang Jinquan, Dong Mi Chen Xuyun shall bear the primary responsibility for failing to perform the deliberation process and information disclosure of the board of directors; the current chairman of the board of directors Wang Guangjun, the president Wang Jinquan and the director of the board of directors Chen Xuyun shall bear the primary responsibility for the extension of the disclosure, and the Guangdong Regulatory Authority shall issue a warning letter to the above six persons. Among the executives, Liao Yongzhong was dismissed in July 2017. Xing Jianchao resigned in February this year for personal reasons.

2. Spectrum Technology Q2 season decreased by 6.18%, TDDI products are expected to be mass-produced before the end of the year;

According to the micro-network news, Spectrum Technology held an online law conference and announced the financial report today (2). The net profit after tax in the second quarter was 12.32 million US dollars, and the after-tax earnings per share (EPS) was 0.16 US dollars. Third-quarter results are expected to rebound, with single-season revenues of $81 million to $89 million, a quarterly increase of 7% to 17.6%, gross margins of approximately 40% to 43%, and single-season combined operating expenses of $1875 to 19.75 million. Dollar.

In the second quarter of the spectrum, the consolidated revenue was US$75.67 million, which was affected by the adjustment of inventory by mainland China panel customers. The quarterly decrease was 6.18%, which was 11.92% lower than the same period of last year. The operating gross profit was US$31.05 million, down 5.73% from the previous year. In the same period, it decreased by 9.97%; net profit after tax was US$12.32 million, a quarterly decrease of 10.7%, and the after-tax earnings per share was US$0.16 (equivalent to NT$4.80).

Spectrum Technology announced its third-quarter financial forecast. The third quarter consolidated revenue is estimated to be US$81 million to US$89 million, which will increase by 7%-17.6%, and the combined gross profit margin will be 40%-43%. It is 18.75 million US dollars to 19.75 million US dollars.

Zhao Jie, chairman of Spectrum Technology, pointed out that the shipment of panel driver ICs in the third quarter is expected to pick up, and the smart watch orders will also have a good performance, which will drive the third quarter revenue to climb. From the product distribution, it is expected this year In the second half of the year, the high-speed signal transmission interface product and the source driver IC (SIPI source driver) will be expected to fully recover. However, the shipments of touch products in the second half of this year are about the same as last year.

At present, smart phone touch customers are actively converting to panel driver and touch integrated single chip (TDDI), and Spectrum Technology also vigorously promotes TDDI products to China and Taiwan panel factories. It is expected to contribute to the fourth quarter. Mass production shipments can begin before the end of this year.

As for the timing controller (T-Con) products supplied by Spectrum Technology to the iPad and Macbook product lines, Zhao Jie pointed out that shipments in the fourth quarter of this year are expected to start to recover, and shipments are more confident. In the same period of last year, there will be a chance of higher performance in 2017 next year. In addition, the current PCIe high-speed transmission interface is developing towards the Gen4 generation, but it is affected by the shipment delay of the Intel CPU platform. The legal person is also worried about the technology in PCIe Gen4. Retimer product revenue contribution will also be postponed until 2020.

3. PCB business output continued to climb, and the net profit of Shennan Circuit in the first half of the year increased by 11% year-on-year;

Set micro-network news (text / Lee), August 2, Shennan Circuit released 2018 semi-annual report, achieving total operating income of 3.24 billion yuan, an increase of 18.70%; net profit attributable to shareholders of listed companies of 280 million yuan, Year-on-year growth of 11.31%.

Shennan Circuit said that in the first half of 2018, the company continued to implement the '3-In-One' strategy, focusing on the company's annual business objectives, tackling difficulties and achieving rapid breakthroughs and development.

(I) The printed circuit board business continues to grow rapidly

During the reporting period, Shennan Circuit's printed circuit board business achieved sales revenue of 2.299 billion yuan, a year-on-year increase of 19.61%, accounting for 70.97% of operating income. The printed circuit board business is still the main source of Shennan circuit profit, mainly from communications. The demand for service storage is driving. PCB business output continues to rise, and all work is steadily carried out and achieved the set goals. At the same time, Shennan Circuit actively cooperates with customers to develop PCB products for next-generation 5G wireless communication base stations, and is the next generation communication network and equipment. Provide high-speed, high-capacity solutions. In addition, the Nantong factory has completed third-party system certification, and has launched customer certification, and is expected to gradually release production capacity at the end of the year.

(II) The income of silicon and wheat products in the package substrate business continued to grow, and the construction of Wuxi factory was carried out in an orderly manner.

During the reporting period, the packaged substrate business achieved sales revenue of 386 million yuan, an increase of 19.33% year-on-year, accounting for 11.91% of operating revenue. The business growth was mainly driven by the growth in demand for acoustic MEMS-MIC package substrates (MEMS-MIC). Shennan Circuit continues to maintain its leading edge in technology and production of MEMS-MIC products. At the same time, the construction of Wuxi plant is progressing in an orderly manner.

(3) The electronic assembly business strengthens its operational capabilities and is recognized by customers.

During the reporting period, the electronic assembly business achieved sales revenue of 399 million yuan, a year-on-year increase of 16.67%, accounting for 12.31% of operating income. Business growth was mainly driven by demand growth in the communications sector. During the reporting period, the electronic assembly business continued to carry out lean automation projects. At present, the business has the ability to process various high-precision, high-complexity electronic assembly products.

(4) Strengthening R&D investment to occupy the high-tech frontier of the industry, and the achievements of production, education and research are outstanding.

During the reporting period, Shennan Circuit R&D invested 166 million yuan, an increase of 17.72% over the same period of last year, accounting for more than 5% of operating revenue. The main focus is on high-speed, high-frequency, ultra-large capacity and other key areas for next-generation communication printed circuits. 311 patents were granted, including 279 invention patents, and the number of patent grants ranked in the forefront of the industry. (Proofreading / Ermu)

4. The scale of production expanded. Dongshan Precision’s net profit for the first half of the year increased by 117.93% year-on-year;

Set micro-network news (text / Lee), Dongshan Precision recently announced that in the first half of 2018, the company achieved operating income of 7.212 billion yuan, an increase of 17.83% over the same period of the previous year; the net profit attributable to the parent company was 260 million yuan, In the same period of last year, it increased by 117.93%.

In this regard, Dongshan Precision said that the main reason is that the company's production scale has expanded and sales have increased. Dongshan Precision said that with the gradual production of Yancheng production base and the continuous improvement of the company's core products in the industry, the company's capacity scale advantage and resource integration advantages Continue to show. The company adheres to the customer-oriented business strategy, guides the application of technology industrialization, increases R&D investment and construction of smart factories, strengthens internal management, improves product quality and delivery capabilities, and actively strives for the realization of the company's development strategy. (Proofreading / Ermu) 5. With the power management business as the core, the semi-annual net profit of Desai Battery increased by 16% year-on-year;

Set micro-network news (text / Lee), Desai battery released 2018 first half results announcement, the company's main business maintained steady growth, the first half of 2018 achieved operating income of 6.312 billion yuan, an increase of 35.22%; total profit of 220 million yuan , a year-on-year increase of 11.11%; net profit of 167 million yuan, an increase of 16.98%; the net profit attributable to shareholders of listed companies was 133 million yuan, an increase of 16.49%.

Desai Battery said that the company's traditional advantage business continued to maintain a good growth trend, market share was further consolidated, and the number and amount of product sales continued to increase year-on-year. The company's power battery business focused on the core strategic customers with the core of power management system business. Actively promote the fixed-point and mass production of the project; Huizhou Xinyuan internally adjusts the organizational structure and personnel scale, strictly controls the cost and expenses, and reduces losses.

In addition, Huizhou Blue Micro acquired the equity of Hong Kong Lan Yue minority shareholders and indirectly held 100% equity of Vietnam Lan Yue, further increased investment and control of Vietnam Lan Yue resources, and strived to improve its business quality and actively build the company. The competitiveness of the first overseas manufacturing base. (Proofreading / Ermu)

6. The US Department of Commerce has blocked the technology of 44 Chinese companies! Hikvision is not on this list;

The micro-network news (text / Lee), the US Department of Commerce announced on August 1 that 44 Chinese enterprises were technically blocked, including Aerospace Science and Technology Co., Ltd., China Electronics Technology Group Corporation's research institutes and subordinate units, such as the 13th. 14, 38, 55 Research Institute. In this regard, Hikvision said on the investor interaction platform, Hikvision and the company's major shareholder CLP Haikang Group Co., Ltd., China Electronics Division 52 Institute is not in the US Department of Commerce Published in the list.

In addition, Hikvision also said that with the globalization of the company's business, the proportion of business in each region has been in a dynamic change. The company has no specific data disclosure in each region. According to the IHS Markit research report, Haikang currently The market share in the Americas is 8.9%. The situation of Sino-US trade war is still evolving. The company's US market business has not been materially affected for the time being. We will attach great importance to it and continue to pay attention.

Previously, the US House of Representatives passed the 'prohibition of the US federal government to purchase information from some Chinese manufacturers (including Hikvision) video surveillance equipment' motion. Hikvision pointed out that never attempted to enter the US government procurement supplier list, Products are distributed through US sales agent channels, and individual products may be purchased through local integrators and installers. The company is also more comfortable with whether US government departments purchase Hikvision products.

Hikvision has issued a statement saying that there is no factual basis and evidence for a proposal to prohibit the US federal government from purchasing video surveillance equipment from Chinese companies such as Hikvision. The sponsor’s allegations have obvious subjective speculations and prejudice and will be resolute. Defend the company's reputation and legitimate interests. (Proofreading / Ermu)

7. Yingtang Zhikong plans to invest 75 million yuan to jointly set up Yingtang Optoelectronics, the main 3D glass;

Set micro-network news (text / Lee), August 2, Yingtang Zhikong announced the announcement, the company intends to establish a partnership with Shenzhen Pacific Automation Equipment Co., Ltd. (hereinafter referred to as 'Shenzhen Pacific) to establish Huizhou Yingtang Optoelectronics Technology Co., Ltd. (hereinafter referred to as 'Yingtang Optoelectronics', the actual name is subject to the industrial and commercial registration), of which the company invested 75 million yuan, Shenzhen Pacific invested 25 million yuan. After the completion of the industrial and commercial registration, the company will hold 75% of Yingtang Optoelectronics, become The controlling shareholder of Yingtang Optoelectronics.

Yingtang Optoelectronics intends to have a registered capital of RMB 100 million. The business scope includes R&D, production and sales of glass cover (including curved glass cover), glass protective film, optical glass lens, glassware, ceramic cover, plastic cover, Optical film and products; other optical and electronic related materials, software technology development, production and sales, trade and import and export.

Yingtang Zhikong said that this 3D curved glass project is in line with relevant national industrial policies and the company's overall strategic development direction, and has good market development prospects and economic benefits. At the same time, this investment will rely on 'independent research and development production of 3D glass heat. Bending equipment + matching hot bending mold + product technical parameters + professional technical management team's integrated technology and production capacity advantages, develop and meet the demand for 3D glass in the industrial application field, integrate the industrial chain, optimize product structure, improve profitability, promote The company's long-term sustainable development.

(1) In line with the development trend of the industry and achieve the company's strategic development goals. To improve the company's existing supply chain and accelerate the development strategy of the company's smart consumer electronic components industry chain 'one-stop' service, the company intends to develop and deploy New products such as technology-oriented 3D curved glass. This investment project will build a new 3D curved glass production line by purchasing advanced production equipment and testing equipment to meet the needs of customers for the development of smart phones and other industries, and enhance the company's profitability. It is an important measure to implement the company's established development strategy goals.

(2) Increasing the profit growth point, ensuring the company's continuous development and growth of the glass cover. After years of development, from the initial 2D to the curved surface 2.5D, the market has gradually become saturated, mobile phone shipment growth is slow, glass cover The competition among manufacturing enterprises is increasingly fierce, and the homogenization of products is serious. With the replacement of LCDs by flexible OLEDs, the proportion of flexible display screens has increased significantly, and 3D glass can be perfectly matched with curved screens, and is beautiful and light. The texture is good, and the wide application of 3D curved glass has added new profit growth points for manufacturers. Through the construction of this investment project, it will help the company to further obtain more business and orders for middle and high-end products, and provide new revenue for the company. Growth point. At the same time, by arranging the 3D curved screen field, the efficient synergy between the original business and the newly added business will help to enhance the company's comprehensive competitiveness, increase the added value of products, enhance the sustainable profitability and anti-risk ability. Long-term sustainable development lays a solid foundation.

(3) Enhance customer stickiness and further enhance the company's market competitiveness. The structure of general consumer electronics products is more complicated, coupled with the rapid changes in the consumer electronics market and fierce competition. Efficient supply chain management has become the key for terminal manufacturers to seize the market and win competition. , is the concentrated embodiment of the core competitiveness of the enterprise. The centralized, large-scale, standardized procurement model brought by the one-stop procurement platform greatly optimizes the customer procurement process, effectively reduces the procurement cost, and helps the customer to create a larger Market value. The company will have the large-scale supply capability of 3D curved screen related products, and the ability of comprehensive service customers will be further enhanced to meet the needs of mid- to high-end smart terminal product manufacturers, which will help enhance customer stickiness and enhance the comprehensive market competitiveness of enterprises.

(4) Conducive to promoting local employment and having an impact on social development. The implementation of this project will have a positive impact on local economic and social development while improving the company's production capacity. After the project is completed, the company will be in a large number of localities. Recruitment personnel are conducive to improving local employment levels and promoting local economic development. In summary, this 3D curved glass project is in line with relevant national industrial policies and the company's overall strategic development direction, with good market development prospects and economic benefits. At the same time, this investment will rely on 'independent research and development of 3D glass hot bending equipment + supporting hot bending mold + product technical parameters + professional technical management team' complete integration technology and production capacity advantages, develop and meet the industrial application field for 3D glass Demand, integrate the industrial chain, optimize product structure, improve profitability, and promote the company's long-term sustainable development.

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