Welcome

Weir shares (603501): Howell completed the promotion of new products and proceeded smoothly

Weir shares (603501): Howell completed the promotion of new products and proceeded smoothly
Event: The company recently released the third quarter report for 2019, and the company’s revenue for the first three quarters was 94.0.6 billion, an increase of 39 every year.93%, net profit attributable to mother 1.35 trillion, down 45 a year.4% deducted non-mother net profit 0.62 trillion, down 74 a year.4%.The third quarter revenue was 3.700 million, an annual increase of 6.03%, net profit attributable to mother 0.5.9 billion, down 33 a year.83%. The impact of the downturn in semiconductor distribution continued, with a downward trend in performance.Due to the explosive growth of semiconductor industry demand in the first three quarters of 2018, the company’s performance increased semiconductor demand in the first three quarters of 2018.In 2019, due to the impact of trade friction and weak end-customer demand, the gross profit margin of the semiconductor distribution industry has gradually decreased.The company’s net profit in the first three quarters 西安耍耍网 of 2019 decreased by 45 each year.5%, mainly due to the decline in sales revenue of the semiconductor distribution business.However, in proportion to the performance of the first half of 2019, the company’s Q3 revenue growth increased by 6.03%, the net profit shows a trending potential as the speed decreases. Increased investment in research and development, and the semiconductor design business steadily advanced.Since 2019, the company has continuously increased investment in research and development.In the first half of 2019, the company’s R & D investment was zero.910,000 yuan, an increase of 38 in ten years.45%; of which, semiconductor design business R & D promotion accounted for 15% of semiconductor design business sales revenue.89%.In 2019, the company has made outstanding achievements in the fields of power management chips, TVS and MOSFET. It is expected that by 2020, it will benefit from the 5G replacement wave and the promotion of domestic substitution. The company will further increase market share, and the semiconductor design business will give the company performanceWith huge growth potential. The completion of Howell Assets and the promotion of new products progressed smoothly.In August 2018, the company purchased Howell Technology 85 by issuing shares.53% equity has been completed.As a CIS international first-class enterprise, Howell Technology will also benefit from the company’s distribution network after the merger. Howell has launched new competitive products such as 48M and OV12D2Q in 2019, showing a deep technological accumulation. Compared with the previous old products, the new products have a gap in unit price and profit margin.We believe that under the background of domestic alternatives and the high unit price of Sony’s competing products, it is expected to get rapid promotion, which will bring the company’s performance improvement. Investment suggestion: The company’s net profit for 2019-2021 is expected to be 9 respectively.8.9 billion, 20.2.7 billion, 26.8 billion, maintain the investment rating of Buy-A. Risk warning: CMOS new product promotion is less than expected, Howell integration management is not smooth