Sunlord Electronics (002138): Automotive Electronics, 5G Relay Growth Welcomes New Development
Sunlord Electronics: An internationally competitive internal inductor faucet inductor is one of the largest neutral technology components for passive electronic components. It is widely distributed in communications, consumer electronics, LED lighting, security, smart grids, medical equipment, and automotive electronics.field.Sunlord Electronics is the largest inductor manufacturer in China, with advantages in scale and process technology. After years of steady development, it has formed a diversified electronic component product portfolio with inductors as its core. Communication base stations, mobile terminals, and automotive electronics take turns, driving the company’s performance growth. Base station: 5G high frequency drives the growth of the number of base stations, and the volume of dielectric filters, bridges, and inductors brought by large-scale mimo and AAU integration has greatly increased.Mobile terminal: Iterative driving of communication technology drives mobile terminals to meet the replacement cycle. The increase of 5G frequency and the complexity of mobile phone RF solutions directly increase the amount of mobile terminal RF passive devices (high frequency induction) market.Automotive electronics: Intelligentization and electrification of automobiles are gradually advanced in the 5G era, and the amount of basic electronic components for bicycles is increasing. Overseas Mapping: Looking at the development prospects of Sunlord Electronics compared to the global leader Murata from the growth path of Murata, we believe Sunlord Electronics is benefiting from the strong positive momentum of rising volume and price of the 5G era.Continuously consolidating the industry’s leading position is expected to replicate Murata’s growth path. Earnings forecast and rating expect the company’s EPS for 2019-2021 to be 0.73/0.99/1.18 yuan, the corresponding PE according to the latest closing price is 27.1/20.0/16.8 times.Taking into account comparable company assessments, we give the company 2019-20211.3xPEG, combined with the compound growth rate of performance in 2019-2021, corresponds to 34xPE in 19, and the company’s reasonable value is 24.82 yuan / share, covered for the first time, given a “buy” rating. Risk prompts the impairment of goodwill; the progress of 5G is not up to expectations, and the customer penetration rate is not up to expectations; the company’s financial costs increase under the pressure of RMB appreciation; the cost rises under the high pressure of 都市夜网 environmental protection policies; and the industry competition intensifies.