Weir shares (603501): Results gradually realized, waiting for new product volume

Weir shares (603501): Results gradually realized, waiting for new product volume
The report guide Weil shares released the third quarter report of 2019 on the evening of October 30. Investment Highlights Howwell Technology has completed its performance commitments in the first three quarters, waiting for high-end product heavy-volume companies to achieve revenue of 94 in the first three quarters.0.6 million yuan, an increase of 39 in ten years.93%, net profit attributable to parent company is 1.35 trillion, down 45 a year.40%, the performance was in line with expectations (consolidated Howe statements), of which the revenue achieved in Q3 2019 was 37.30,000 yuan (+6 compared with the same period last year).03%) and net profit was 5932.510,000 yuan (YOY-33.83%), the reason for the change in performance is that Beijing Haowei ‘s income statement data for January-April 2018 did not repeat the scope of the consolidated statement. The company completed the acquisition of Haowei ‘s 100% equity at the end of August and consolidated it. The profit from January to August this year was 68.% Is reflected in minority shareholders’ profit and loss, and only 32% is incorporated into the statement.Howell Technology made a profit of 5 in the first three quarters.700 million (Completed performance on gambling 5.With a profit of 500 billion U.S. dollars, the headquarters of Weir shares extended 80 million yuan in the first three quarters due to the drag on distribution business.Howell Technology surpassed expectations. The monthly profit in September was around 18 million U.S. dollars, which continued to increase in October. The volume of 48M swaps in the fourth quarter is expected to continue to increase, and gross profit and net profit will both increase. Mergers and acquisitions have entered the CIS field, and CIS has a bright future. In the next five years, the composite strength of CMOS output will be 10.05%, through the integration of Weir shares into Howe Technology to expand to CIS, squeeze into the global top three Howe Technology in the background of domestic replacement, significantly increased market share, the future growth path of CIS from four aspects, 1) mobile phoneQuickly cut into domestic models such as Huawei, Xiaomi, OPPO, VIVO, etc., and continue to narrow the gap with Sony Samsung; 2) The level of automotive variable-speed automatic driving increased and the market share increased, reaching 1 in three years; 3) Security penetration in HikvisionIn view of this, the domestic substitution of Dahua has accelerated, trying to change from the second layer to the first layer.Manufacturers; 4) Emerging market transfer downstream applications, the company’s market size has gradually increased on the basis of continued maintenance1. Profit forecast and forecast The company is a leading domestic design company. During the product line expansion period, we expect the company to achieve a net profit of 19-21 in the year 8.72/21.47/29.07,000 yuan, corresponding to EPS are 1.01, 2.49, 3.37 yuan / share. We are optimistic about the company’s profitability and future growth space, and give a “Buy” rating. Risk prompts: 1) silicon wafer price increase; 2) foundry delivery cycle is extended; 3) domestic progress is less than expected catalysts: 无锡桑拿网 1) 48M transition exceeds expectations; 2) domestic design business of the Division is accelerating