Goodix Technology (603160): Stronger than expected growth in chip leader momentum

Goodix Technology (603160): Stronger than expected growth in chip leader momentum

Announcement: The company announced the third quarter report of 2019, with operating income of 46 in the first half of the year.

78 ppm, an increase of 97 in ten years.

8%; net profit attributable to mother 17.

120,000 yuan, an increase of 437 in ten years.


Among them, Q3 single-quarter operating income was 17.

92 ppm, an 83-year increase.

4%; net profit attributable to mother 6.

950,000 yuan, an increase of 236 in ten years.

8%, exceeding market expectations.

Optical fingerprints continue to increase volume, touch, multi-point flowering on the side fingerprints, and profit is higher than expected.

Company Q3 revenue 17.

900 million, net profit attributable to mother 6.

9.5 billion, another record high, mainly due to the continuous volume of fingerprint chips under the optical screen, Q3 is the peak season for consumer electronics stocking. We predict that the single-quarter expansion will be around 45 million and the price will be more than 4 US dollars.

In addition to optical fingerprints, many products such as AMOLED touch and side fingerprints are in full bloom, and traditional businesses such as touch and capacitive fingerprints are rejuvenated.

Profitability continued to improve month-on-month, industry level was solid, and pricing power was strong.

Company Q3 gross profit rate is 60.

79%, an increase of 8.

The 85 units are stable at a relatively high level from the previous month, mainly due to the large number of high-margin optical fingerprint chips inserted. At the same time, the company’s leading product performance, 深圳桑拿网 continuous optimization of product experience, and constant industry consolidation are also the guarantee of the company’s pricing power.

In terms of expenses, Q3 sales expenses1.

300 million, management costs 0.

3.4 billion, R & D expenses 2.

600 million, mainly from the increase in technical service fees, depreciation and amortization costs, employee compensation, outsourcing research and development costs.

With the increase of sales income, the scale effect continues to appear, the breakdown of sales, management, and research and development expense ratios6.

35 averages, and finally achieved a single quarter net margin of 38.

82%, 2 compared with the previous quarter.

56 foreign promotions.

In addition, the company’s net cash flow from operating activities in the first three quarters was 17.

900 million, Q3 single quarter reached 9.

800 million in cash flow.

We judge that ultra-thin optical fingerprints are expected to outperform ultrasonic solutions and achieve breakthroughs for international customers.

The company’s ultra-thin screen fingerprint performance, thickness, and price have sufficient advantages compared to ultrasound in all aspects. The conversion of the company’s products, customers’ recognition of ultra-thin screen fingerprints is getting higher and higher.

As the company’s product performance continues to improve and its thickness is further reduced, it is expected to win competition with Qualcomm’s ultrasonic fingerprint solution route, while achieving breakthroughs for overseas international customers.

Continued R & D investment, rich product line reserves, and strong growth momentum of chip leaders.

In the past 8 years of re-examination, the company’s revenue has increased 70 times. The strong growth comes from the company’s continuous R & D investment and rich technical reserves, and R & D investment in the first three quarters.

200 million, an annual increase of 40%.

After completing the acquisition of NXP’s VAS, the company will form a complete solution such as “acoustic-optical”, which will be world-class in more and more fields, and the potential single machine value of smart terminals and IoT is expected to greatly increase.
At present, the company’s monetary funds + trading financial assets are about 4.5 billion, and it has a very strong continuous expansion capability. We are optimistic about the company’s rich product reserves and promotion capabilities. Looking ahead, after cost optimization, the optical fingerprint penetration rate will continue to increase, and the 5G mobile phone will be ultra-thinThe unit price of fingerprints under the screen will increase, and the expansion of major overseas customers will drive a new round of growth. New products such as sensors, Bluetooth, and MCUs for the Internet of Things will also be accumulated, increasing the company’s net profit for the year 21-21 to 21.
4, 28.

4, 35.

6 trillion, corresponding to the closing price of 2019/10/24 PE is 42.

7, 32.

2, 25.

7x, maintain “Buy” rating!

Risk Warning: The smart phone is expanded to the minimum; the price of the fingerprint chip under the optical screen is lower than expected; the price of the fingerprint chip under the optical screen increases.