Sunlord Electronics (002138): Global competitiveness of high-end inductors awaits 5G volume

Sunlord Electronics (002138): Global competitiveness of high-end inductors awaits 5G volume
The domestic substitution of basic inductors continues, and the high-end products 5G release flexibility.  The company’s inductive products are widely integrated with electronic equipment, and mainly smart phones.At present, the company has become an inductor supplier for mobile phone customers such as Huawei, OPPO,重庆耍耍网 vivo, and Xiaomi. It is in the process of continuously increasing its supply share, mainly replacing Japan’s Murata and TDK.The upgrading direction of the smart phone inductor industry is miniaturization and precision, 0805, 0603, 0402, 0201, 01005, smaller and smaller, higher and higher accuracy, more and more difficult, and more capable manufacturers worldwideless.The company has formed two stacking and winding technology platforms, and the international competitiveness of its products. The high-end 01005 has begun mass production, mainly in Murata, Japan. The use of mobile phone inductors is in the early stages of the industry’s miniaturization upgrade and the release of 5G demand. The scope of application of basic components has expanded and grown steadily.  Through more than ten years of hard work, the company has continued 深圳桑拿按摩网 to increase its automotive electronics orders.Currently available power inductors, various types of transformers, wireless charging coils, common-mode lead current transformers, etc., have become the official suppliers of BOSCH, VALEO, Denso, Tesla and many other global and domestic automotive electronics companies.In the first half of 2019, automotive electronics achieved stable and large-scale delivery.Ceramic microwave devices have entered the certification codes of major customers such as Huawei, and 5G base station services have attempted to ramp up.  Investment advice do we expect the company 2019?In 2021, the net profit attributable to mothers will be 5.5.2 billion, 7.4.4 billion, 8.9.3 billion, the previous growth rate was 15.25%, 34.84%, 20.05%; corresponding EPS are 0.68 yuan, 0.92 yuan, 1.11 yuan.For the company’s leading division in the high-end inductor field, we give the company 32 times PE in 2020 with a target price of 29.44 yuan, covering for the first time, given a “buy” rating.  Risks suggest that the macro economy is down, downstream demand is sluggish, and traditional business growth is slower than expected; high-end 01005 inductor customer certification is less than expected risk; 5G mobile phone volume exceeds expected risk.