CV Sources (002841) 2019 Annual Results Express Commentary-Revenue Growth Under Pressure and Bright Performance
Slightly lower the forecast of net profit attributable to mothers from 2020-2021 to 17.0/18.5.4 billion (previous forecast was 18).1/20.9 ‰), corresponding to EPS forecasts for 2020-21 of 2, respectively.59/2.83 yuan (previous forecast was 2.75/3.18 yuan).The quality and continuous performance of our outstanding companies have repeatedly raised the market’s attention and recognition of the company.The company’s current price corresponds to PE 34/33/30 times of 19-21 years, and it is downgraded to the “overweight” level. It is recommended to continue the mid- and long-term allocation. Income growth is under pressure and profit performance is dazzling.On January 17, the company released its 2019 results flash report: Revenue of 171 ppm / +0.77%, net profit attributable to mother 16.2 ppm / + 61.7%, which is in the upper limit of the forecast range, and the mother deducts non-net profit of 15.3 ppm / + 62.2%.Single-quarter revenue in Q4 2019 was 41 ppm / -17.7%, net profit attributable to mothers in a single quarter2.1 ppm / + 40%.公司2019 年Q3\Q4 收入增长明显放缓,主要原因为:1)2019 年TV 板卡芯片、PCB、电容等原材料价格持续下跌,行业竞争加剧、出现价格战趋势,板卡业务收入阶段性出现highest.2) Shanghai Xianshishi ‘s digital signage business grew rapidly in 2018. In 2019, due to weak downstream demand, digital signage business growth was difficult.3) The macro economy is weak, and the sales of MAXHUB products are less than expected.Profit side: factors such as falling raw material prices, research and development, and cost reductions have led to a significant increase in gross profit margin. Looking forward 苏州夜网论坛 to 2020: It is expected that revenue growth will accelerate and profit growth will be broken down.1) TV board business: At present, the outsourcing ratio of TV manufacturers has increased, and the share of smart TVs has continued to increase. In 2020, the company’s board business may increase in volume and price.However, since 2019Q4, the price of raw materials has shown a rising trend, and the gross profit margin of the board business is expected to decrease significantly.2) Education informatization business: transform education informatization 2.With the implementation of the 0 policy, the company’s diversified hardware products and solutions will usher in growth, and it is expected that the education sector will still show a better growth trend.3) Conference tablet business: It is expected to continue the growth trend in 2019. There is limited pressure to lift the ban 杭州夜网 and reduce holdings without having to panic too much.On January 20, the company will usher in the lifting of the ban on the sale of restricted shares held by the original shareholders, and the market is concerned about the pressure to reduce holdings brought by the lifting of the ban.We believe that: 1) The vast majority of the company’s shareholders are still serving in the company, and the major shareholders are still directors and supervisors. According to the lock-up period commitment at the time of the IPO, shareholders holding restricted shares cannot reduce their holdings more than the holdings of the stock each year.25%.2) The company’s air force circulation is small, with only 10 shares outstanding.7%, the lifting of the ban will increase the liquidity of stocks, suitable for large institutions.3) The company’s corporate culture is healthy, with well-developed benefits, many growth opportunities, and younger employees. The average age is less than 30 years old, and the previous stock incentive plan has increased to bind the interests of most key employees.And combat effectiveness. Risk factors: the risk of increased competition in the industry, and the risk of fluctuations in raw material prices. Investment suggestion: slightly reduce the net profit return to motherhood from 2020-2021 to 17.0/18.5.4 billion (previous forecast was 18).1/20.9 ‰), corresponding to EPS forecasts for 2020-21 of 2, respectively.59/2.83 yuan (previous forecast was 2.75/3.18 yuan).The quality and continuous performance of our outstanding companies have repeatedly raised the market’s attention and recognition of the company.The company’s current price corresponds to 19/21 PE 34/33/30 times. Considering the increase in raw material prices and the pressure on the board’s gross profit margin, it has been downgraded to the “overweight” rating.