Ophelia (002456) 2018 Annual Report and 2019 First Quarterly Commentary: The company’s performance is lower than expected asset impairment drags earnings

Event: The company released its 2018 annual report and 2019 first quarter report in the early morning of April 26, 2019.

The company’s 2018 operating income was 430.

4.3 billion, an annual increase of 27.

38%, net profit attributable to mother is -5.

1.9 billion yuan, a decline of 163 per year.

10%; the company’s operating income for the first quarter of 2019 was 106.

5.6 billion, an annual increase of 40.

98%, net profit attributable to mother is -2.

5.7 billion, an annual decrease of 186.

86%.

Opinion: The profit exceeded expectations, due to asset impairment.

The company’s performance report is expected to have an annual operating income of 430 in 2018.

500,000 yuan, an annual increase of 27.

40%, net profit attributable to mother is 18.

USD 3.9 billion, an annual increase of 123.

64%, the company’s actual operating income is in line with expectations, but the net profit attributable to the parent is expected to exceed expectations. We believe that asset impairment is the company’s profit from profit to loss.

Affected by multiple factors such as the decline in inventory prices, the inability to recover some receivables, and the impairment of fixed assets, the company recognized asset impairment losses in 2018.

4 billion yuan, of which the bad debt loss is 2.

0.5 billion, the inventory impairment loss was 15.

60ppm, asset impairment losses were recognized for the first time in the first quarter of this year.

US $ 2.2 billion, which had a significant impact on profit during the reporting period.

In the smartphone segment, increased competition has affected the company’s gross profit.

According to the IDC report, the total global smart phone growth in 2018 was 14 billion units, a year-on-year decrease of 4%.

1%, China’s smartphone implants are 3.

9.8 billion units, a decrease of 10 per year.

5%.

The current smart phone market has entered the stock stage. The expansion of mobile phones continues to intensify competition among component manufacturers, which has affected the company’s gross profit to a certain extent.

The company’s consolidated gross profit margin for 2018 was 12.

32%, a decrease of about 1 in 2017.

41pct, of which the gross profit margin of the camera module business is 12.

73%, benefiting from the increase in the share of high-end products, the gross profit margin remained stable; while the touch business broke through due to market competition and the impact of technical routes such as incell, the reported profit level improved, and the gross profit margin of products in 2018 was 11.

19%, a decline of 3 per year.

67pct; gross profit margins for sensing business and smart car business are 12 respectively.

91% and 21.

12%, each year fell by 0.

61pct and 2.

84 points.

The company’s consolidated gross margin for the first quarter of 2019 was 8.23%, a decrease of approximately 6.
.

92pct, profitability has weakened.

The company’s asset interest rate is on the high side.

The company has continuously expanded production through external financing to achieve product category expansion and rapidly grow into an industry leader. However, the overall asset-liability ratio has remained at a high level and is increasing year by year. There is room for improvement in the financial structure.

The company introduced new business scale in 2018, realized capital expenditure of about 60 billion in the field of optical touch fingerprint recognition, and increased 天津夜网 financing needs; the company’s assets and liabilities replaced 77 at the end of 2018.

08%, ranking 6 at the end of 2017.

88 averages.

Investment suggestion: Downgrade to avoidance level.

The company is a leading company in the field of consumer electronics optics in China and is expected to fully benefit from the development trend of dual / three cameras, under-screen fingerprint recognition and flexible OLED.

However, the company itself also has risk factors such as inventory depreciation, some receivable income cannot be restored, and a high asset-liability ratio. Therefore, the company has downgraded the level to “avoid”.

As asset impairment losses may have an impact on the company’s subsequent operating results, no profit forecast is made for the time being.

Risk warning: smart phone market segmentation, 苏州桑拿网 intensified industry competition, etc.