Goodix Technology (603160) 2019 first quarterly report review report: explosive products continue to exceed expectations, King of Fighters is not old, refers to everything connected
Event: The company released the first quarter report of 2019 and achieved operating income12.
25 ppm, an increase of 114 in ten years.
39%, net profit is 4.
14 trillion, an increase of 2039 in ten years.
95% comments: Explosive products continue to explode: The optical fingerprint recognition chip under the screen has become an explosive product. The first quarter of 2019’s performance exceeded expectations. The company pioneered the invention of the optical fingerprint solution under the screen, and also has leading comprehensive performance.The popularity of well-known terminal brands has been widely used by Huawei, OPPO, vivo, Xiaomi, OnePlus, Honor, Lenovo and other mainstream brands in a total of 20+ models, such as Mate 20 Pro, OPPO Reno and other series of optical fingerprint chips under the screen of mobile phonesSupply by the company.
In addition, the OnePlus 6T, which uses the optical fingerprint solution under the roof screen, has passed the rigorous verification by US operators, becoming the first optical fingerprint phone under the screen sold in the United States.
As of February 2019, the company’s under-screen optical fingerprints have been applied for and received 500+ international and domestic patents.
Thanks to the rapid increase in the penetration rate of under-screen optical fingerprint recognition solutions in Android phones, the company’s under-screen optical fingerprint recognition chips became explosive products. In the first quarter of 2019, the company achieved revenue growth of 114% and net profit growth of 2039%.
The reason for the rapid increase in net profit is the high cost of R & D investment in chip design. Once large-scale mass production conversion is achieved, the marginal cost of the chip will be rapidly reduced, and the marginal revenue will be significantly increased.
The King of Fighters is not old: Fully build the SMSC comprehensive platform. The sword refers to the Internet of Everything company to continuously improve its core competitiveness through endogenous extension.
The company’s R & D intake in 2018 was 8.
3.8 billion, accounting for 22.
53%; R & D investment in the first quarter of 20192.
09 million yuan, accounting for 17% of revenue.
Outsourcing acquires German cellular IP supplier ComSolid to enhance competitiveness in the IOT Internet of Things field.
The company strives to build four major fields of sensors (physical sensing) + MCU (information processing) + security (data security) + connectivity (wireless transmission), and is committed to providing a complete software and hardware platform, which means that everything is connected.
The prelude to the era of the Internet of Everything has begun. The application of the Internet of Things covers hundreds of billions of smart terminals and devices that can be perceived, controlled and connected.
Gartner data shows that the development of the Internet of Things industry is expected to maintain a growth rate of about 20%. By 2020, the global Internet of Things industry scale will reach 2.
93 trillion US dollars, the average annual compound average will reach 20.
After years of exploration and cultivation in the core technology areas of analog and hybrid circuits, optical sensing, low-power wireless connection technology, and algorithms, the company has successfully launched a variety of IoT solutions.
The company released the GH61X series and GH30X series at Mobile World Congress 2019.
GH61X series is currently the industry’s smallest, the smallest, reaching the IPX5 waterproof standard multi-channel in-ear detection and touch two-in-one solution.
This solution perfectly adapts to TWS (True Wireless Stereo), headphones and other headphones.
GH30X series is the company’s second-generation heart rate detection chip, which has the advantages of ultra-small size, ultra-low power consumption, and more accurate heart rate measurement.
The Internet of Things will become the driving force for the company’s continuous and stable growth in the future.
Earnings forecast, forecast, rating and rating With the rapid increase in penetration of the under-screen optical fingerprint recognition in Android phones, the company ‘s under-screen fingerprint recognition chip has become an explosive product. The first-quarter performance in 2019北京夜网 exceeded expectations.The annual EPS forecast is 3.
71 yuan (2 last time.
12 yuan), plus the EPS forecast for 2021 is 4.
46 yuan, the current expected corresponding PE is 34, 29, 24 times, maintain “Buy” rating.
Risk reminder: The fingerprint penetration rate under the optical screen is less than expected, the risk of market competition and profit margin shrinking, and new product development is less than expected.