标题：Shengyi TechnologyCapacity digestion to start in 2016 watch 4G and auto electronics
发布日期：2016-03-22 7:23:47
内容： 2015 results slightly beat In 2015, revenue +2.6% YoY to Rmb7.61bn; net profit +5.6%YoY to Rmb544mn, above the preannounced Rmb536mn andslightly beating our expectation (+~0% YoY). It also proposedan Rmb3 pre-tax dividend per ten shares. PCB drove up revenue; gross margin hit new high. In4Q15, revenue rose 9% YoY and PCB saw fast growth (+28%YoY in 2H15). Thanks to the falling raw material cost, 4Q15 grossmargin rose 3.0ppt YoY to 20.9%, marking the highest levelsince 2006 and tallying with our forecast in the results preview. Cost cut boosted efficiency; OCF turned positive YoY. In4Q15, operating profit +160% YoY as G&A expense ratio -2.0pptYoY thanks to improvement in management of human resourcesand supply chain. 4Q15 net OCF was Rmb550mn (vs. –Rmb50mn at 4Q14) due to better inventory management(end-4Q15 inventory -6% QoQ). Trends to watch Attention to 4G breakthroughs and auto electronics in2016; capacity digestion to start. Potential for new business expansion. Earnings forecast Lift 2016/17e EPS forecast by 2%/2% toRmb0.42/0.51, given upside surprise in gross margin. Thestock is trading at 19.1x/15.8x 2016/17e P/E. Valuation and recommendation Lift TP by 2% to Rmb9.7 (23.0x 2016e P/E). Risks Weak economy; 4G progress disappoints; failure to digestexpanded capacity.
发布日期：2016-03-22 7:23:47
内容： 2015 results slightly beat In 2015, revenue +2.6% YoY to Rmb7.61bn; net profit +5.6%YoY to Rmb544mn, above the preannounced Rmb536mn andslightly beating our expectation (+~0% YoY). It also proposedan Rmb3 pre-tax dividend per ten shares. PCB drove up revenue; gross margin hit new high. In4Q15, revenue rose 9% YoY and PCB saw fast growth (+28%YoY in 2H15). Thanks to the falling raw material cost, 4Q15 grossmargin rose 3.0ppt YoY to 20.9%, marking the highest levelsince 2006 and tallying with our forecast in the results preview. Cost cut boosted efficiency; OCF turned positive YoY. In4Q15, operating profit +160% YoY as G&A expense ratio -2.0pptYoY thanks to improvement in management of human resourcesand supply chain. 4Q15 net OCF was Rmb550mn (vs. –Rmb50mn at 4Q14) due to better inventory management(end-4Q15 inventory -6% QoQ). Trends to watch Attention to 4G breakthroughs and auto electronics in2016; capacity digestion to start. Potential for new business expansion. Earnings forecast Lift 2016/17e EPS forecast by 2%/2% toRmb0.42/0.51, given upside surprise in gross margin. Thestock is trading at 19.1x/15.8x 2016/17e P/E. Valuation and recommendation Lift TP by 2% to Rmb9.7 (23.0x 2016e P/E). Risks Weak economy; 4G progress disappoints; failure to digestexpanded capacity.
