Huiding Technology (603160) Quarterly Review: Optical Fingerprint Business Continues to Grow

Huiding Technology (603160) Quarterly Review: Optical Fingerprint Business Continues to Grow

Core point of view Q3 performance maintained high-growth companies disclosed three quarterly reports, the first three quarters achieved revenue 46.

80,000 yuan, an increase of 97 in ten years.

8%, exceeding last year’s average revenue; net profit attributable to mother 17.

1 ppm, a ten-year increase of 437.

2%.

Among them, Q3 achieved revenue of 17 in a single quarter.

90,000 yuan, an increase of 83 in ten years.

4%; net profit attributable to mother 6.

950,000 yuan, an increase of 236 in ten years.

8%.

Operating cash flow in the first three quarters17.

9 ppm, Q3 net operating cash flow in a single quarter9.

800 million, a record high in the single quarter.

Above the track faucet, there are 84 commercial brand models. According to the company’s official website, on October 23, 2019, the company’s optical fingerprint under the screen obtained 84 commercial brands, including 北京夜网 Huawei mate 30pro, Xiaomi 9 pro 5G, oppo renoace,vivo NEX3 and so on.

Huiding Technology’s outstanding software and hardware capabilities, competitive new product reserves, high-quality customer resources, stable leading in the field of optical fingerprints under the screen, and its competitiveness continues to exceed expectations.

High R & D layout In the first three quarters of the company’s R & D investment7.

20,000 yuan, an increase of 40 in ten years.

18%.

Looking ahead to the next year, Huiding will have ultra-thin, new fingerprint products under the screen, and the company will actively deploy the Internet of Things (BLE, NB-IoT, MCU) and audio circuits.A complete product of optical + audio + security + connection + control was formed, and the strategic layout of the Internet of Things continued to advance.

武汉夜生活 Earnings forecast and rating The company’s EPS for 2019-2021 is 4 respectively.

93/5.

96/7.

47 yuan, the corresponding PE according to the latest closing price is 40.

7/33.

6/26.

9 times.

Taking into account the estimates of comparable companies and the company’s 19/20 performance growth rate, we give the company 50xPE for 19 years, and the company’s reasonable value is 246.

5 yuan / share, give “Buy” rating.

Risk warning: The price of the optical fingerprint identification chip under the screen and the risk of lowering the gross profit margin; the risk of smartphone sales; the exchange rate risk; the risk of major shareholders’ reduction; the patent risk.