Leading Intelligence Manufacturing (002600): Performance continues to improve and build precision manufacturing platform enterprises

Leading Intelligence Manufacturing (002600): Performance continues to improve and build precision manufacturing platform enterprises
The company released the third quarter performance forecast, the net profit attributable to the mother in the first three quarters of 19?$ 2.1 billion (same period last year).500 million), of which 7.9 million US dollars is the impact of changes in fair value, the first three quarters of operating net profit was 11.1?13.10,000 yuan, an increase of 26 in ten years.76%?49.61%; Q3 single-quarter net profit attributable to mother 7.9?9.900 million, of which 4.0 ppm is the impact of changes in fair value, and net operating profit is 3.9?5.900 million.  Core point of view: The main business maintained rapid growth, and the performance continued to improve.The report scale, the company’s average value of precision function and structural parts business and display and index module business maintained growth, meanwhile, by actively improving management capabilities, operational capabilities and business capabilities, the performance continued to improve.  Multi-service lines are expected to go hand in hand.Looking ahead, we believe that the company’s multi-business lines are expected to go hand in hand: the restructuring of the precision structure business of Lingyi is expected to return to rapid growth in 2020; Dijing Optoelectronics’ stable operation can still maintain a stable net interest rate; M & A XerkangIt is expected to improve its profitability.  Business and operating budgets will bring future marginal improvements, creating a precision manufacturing platform-type enterprise.The material, structure, and module layout of the company’s business in the vertical direction achieves full coverage of mainstream customers in the horizontal direction. Through management output and business collaboration, the company integrates existing business among the main bodies to create precision manufacturingPlatform enterprises.  Earnings forecast and rating: We are optimistic about the company’s vision to grow into a leading global consumer electronics comprehensive solution provider.Taking into account the impact of changes in fair value, we expect the company’s EPS in 19-21 to be 0.38/0.40/0.43 yuan, corresponding PE is 26/25/23 times, combined with the performance growth of the next 2 years and the estimated situation of comparable companies, give the company a 19-year performance of about 30 times the PE valuation, corresponding to a reasonable value of 11.4 yuan / share, maintain “Buy” rating.  Risk reminders: Downside risks to the 杭州桑拿网 precision business of the precision function industry; increased competition in the industry; integration and synergy effects are lower than expected risks; asset impairment losses and fair value gains and losses exceed expected serious risks.