Fenda Technology (002681): Metal parts drag down performance smart wear is the biggest surprise

Fenda Technology (002681): Metal parts drag down performance smart wear is the biggest surprise

1H19 results were lower than our expectations Fenda Technology announced 1H19 results: Revenue 14.

80,000 yuan, an annual increase of 3.

9%, net profit attributable to mothers is 75.05 million yuan, which is extended by 48 per year.

4%, below our United Nations expectations.

Of which 2Q19 single-quarter revenue of 8.

30,000 yuan, an increase of ten years.

9%; net profit of 26.67 million yuan, divided by 70.

8%.

The poor performance in 1H19 was mainly due to: 1) Oppenda was reduced by RMB 44 million due to relocation and inventory disposal; 2) The overall metal structure business was affected by mobile phone penetration and increased competition, resulting in a decrease in revenue 31.

2深圳SPA会所%; 3) Sino-U.S. Trade frictions disrupted export orders for speakers, and the 1H19 speaker business grew by 12%.

5%, slower than we expected.

Development trend The smart wear business is the biggest surprise.

Revenue of smart wearable business of 1H19 company1.

800 million US dollars, an annual increase of 1300%, mainly from the growth of Huawei bracelets, Philips watches, Decathlon bracelets, etc., the company has been gradually implementing the layout of intelligent hardware.

We expect annual revenue to reach more than 500 million U.S. dollars and benefit from the 5G AIOT era in the future.

Speaker outlets began to recover, and smart speakers are still bright.

The export of 1H19 traditional speakers has improved due to the impact of Sino-U.S. Trade frictions, but smart speakers have performed well, 北京桑拿洗浴保健 enabling the speaker business to double.

We are seeing a rebound in overseas orders for traditional speakers from July to August. The peak season is expected to come earlier in September to October of the previous year, and the smart speakers will continue to be strong. We still maintain the original speaker business’ 44% growth forecast.

The worst part of the metal piece gradually passed.

In the past two years, the company’s metal parts business has encountered great challenges, especially metal appearance parts for mobile phones.

Recently, under the background of Huawei’s upgrade and localization, the domestic metal parts market has picked up, and the company’s subsidiary Oppenda has re-entered the Vivo supply system.

Expanding demand for smart door locks, electronic cigarettes, and smart homes, the company’s metal parts business is expected to gradually recover.

Earnings forecasts and estimates Taking into account the impact of the decline in smartphone launches and the impact of Sino-US trade frictions, we lower the company’s 19 / 20e EPS by 15% / 5% to 0.

20/0.

26 yuan.

Currently corresponding to 19e 22.

5x P / E.

Maintain neutral and 5.

00 yuan target price, corresponding to 19e 25.

0 times P / E, compared with the current 11% upside.

Risks Smartphone emissions are down; Sino-US trade friction risks.