-ST Fangu (002194): Based on ceramic filters: 5G new growth

* ST Fangu (002194): Based on ceramic filters: 5G new growth

Event: The company released its 2018 annual report and gradually realized revenue11.

95 ‰, a year-on-year decrease of 16%; net profit attributable to shareholders of listed companies.

US $ 8.9 billion, an increase of 137% in ten years; net profit after deducting non-attribution to mothers is -69.9 million, an increase of 87% in one year.

The company improved its gross profit margin from -9 in 2017 through resource integration, optimization of product structure, cost reduction and efficiency improvement.

78% improved to 14 in 2018.

18% is an important reason for the company’s performance to turn losses into profits and its operations gradually return to normal.

  The effect of cost reduction and efficiency improvement is obvious, and the gross profit margin of the main business has steadily recovered.

In 2018, Wuhan City recovered the two domestic land use rights and related assets held by the company, and the company recognized the income from asset disposal2.

4.3 billion.

After dating the company’s strategic investors, the company further implemented cost reduction and efficiency improvements, as well as the optimization of its personnel structure. The management capabilities continued to improve. The report led to a reduction in the company’s manufacturing costs, a reduction in the number of 苏州桑拿网 employees, and a reduction in labor costs.

The company’s sales expenses decreased by 28 each year in 2018.

73%, the management cost is reduced by 29 every year.

30%.

Affected by the decline in the speed of network construction in the final stage of 4G, the increase in capital expenditures, and the relative overcapacity of the industry, the company’s operating income decreased by 16%. The company actively adjusted its product sales structure, and the average unit price of RF devices increased, while its export sales increased.

Affected by the above factors, the company ‘s main products ‘gross profit margins increased, the filter gross profit margin increased by 30%, the duplexer gross margin increased by 29%, and the RF wavelength gross margin increased by 19%.

  Based on ceramic dielectric filters, accelerate new business layouts such as millimeter wave radar.

5G base stations are increasingly miniaturizing and lightening devices, and ceramic dielectric filters can be lightweight, have good temperature drift resistance, and miniaturization advantages as one of the main options for major equipment manufacturers under the conditions of performance.

Fangu Ceramics, a subsidiary of the company, has completed the technical reserve of the entire industrial chain of dielectric ceramic filters. Driven by the reported increase in operating turnover and gross profit margin, Fangu Ceramics can achieve a net profit of 636.

110,000 yuan, an increase of 347% in ten years.

In response to the accelerated pace of 5G commercial use, the 5G market demand may change in advance and gradually transition to the solution of new projects for 4G products. It has developed multiple broadband and multi-frequency products for 4G / 5G convergence networking to meet customers’ multi-frequency co-siteDemand; at the same time, the development of radial microwave point-to-point transmission and 5G millimeter wave products has been strengthened, and a number of microwave products have been developed. Among them, millimeter wave radar has established business relationships with many well-known automobile OEMs, and business has made phased progress.
  5G is based on large antennas, which drastically increases the demand for RF components.

Massive MIMO, one of the 5G proprietary technologies, requires a large increase in the RF path. The filters in the separated RF unit mainly reach 64 and 64, and even 128 and 128, from the traditional 4G era.Demand has grown by orders of magnitude.

At present, a typical 5G radio frequency unit requires 64 filters, while pre-4G radio frequency units only require a 2-channel filter.

This is a deterministic growth opportunity for the 5G subdivision filter field.

At present, the three major operators have determined to achieve 5G commercialization in 2019. If 5G investment is considered, the capital expenditures of the three major operators have increased compared to 2018.

The company plans to accelerate the construction of 5G capacity in 2019 to eliminate insufficient capacity. Taking 5G commercial opportunities as an opportunity, it will use the accumulated technical capabilities of the filter business and invest in 5G products and technology platforms to accelerate the development of product miniaturization, size and broadbandTechnology research on belt, high performance, high efficiency, etc., and cooperate with customers to lead the company in the industry.

  Risk warning: intensified market competition; customer concentration risk; risk of technological research and development lag