In the first quarter of 2018, Mulinsen's revenue increased by 31.70% year-on-year, and the net profit of returning to the mother was 24.94%, which was basically in line with expectations.
In the first quarter of 2018, the company's revenue was 2.023 billion yuan, a year-on-year increase of 31.70%. The net profit attributable to the mother was 166 million yuan, a year-on-year increase of 24.94%. The net profit of non-home return was -0.14 billion yuan, and the gross profit margin was 13.69%. The year-on-year decrease was 11.27 pct, and the net interest rate was 8.15%, which was basically the same as the same period of last year. It is estimated that the net profit from January to June 2018 will be about 330 million yuan to 450 million yuan, a year-on-year increase of 7.80%-47.00%.
The company's revenue increased steadily year-on-year, but the non-net profit was slightly depleted, mainly due to the company's capacity relocation and Jiangxi's expansion. The newly added capacity was not fully released, which dragged down the performance. The capacity utilization rate is expected to increase significantly in the second quarter.
Due to the relocation of some of the company's old factory capacity to Jiangxi and the expansion of capacity in Jiangxi, the company's net fixed assets increased by 1.2 billion in the report period, resulting in a significant increase in depreciation. At the same time, the Spring Festival factor in the first quarter was affected by the recruitment, and the new capacity utilization rate was low. In addition, the expansion of production and investment funds and the company's short-term debt replacement, resulting in the company's financial expenses increased by 100%, so the company's gross profit margin and net interest rate decreased. It is expected that the company's capacity relocation will come to an end in the second quarter, the new capacity will be released smoothly, the capacity utilization rate will be improved, and the future matching financing will be in place to reduce the company's liabilities, and the company's profitability is expected to increase.
The company's packaging ranking was promoted to the fourth in the world, while the acquisition of LEDVANCE was completed, and the entire industrial chain layout realized the LED integrated aircraft carrier.
According to the LEDINSIED data, in 2017, Mulinsen has been promoted to the world's fourth largest packaging plant. At the same time, the 100% stake in LEDVANCE has been transferred to Mulinsen in April this year. Mulinsen has officially become the integrated carrier of LED industry chain. Through the LEDVANCE double-year brand awareness, the company has obtained important bids for the Indian market and successfully developed global sales regions, from 120 countries to 140 countries. The integration synergy has shown good momentum. LEDVANCE's LED business is expected to exceed 60% in FY18. At the same time, the company continues to strengthen the supporting capacity of the entire industry chain to build a global LED integrated aircraft carrier. Leading companies in upstream strategic alliance LED chips, including Aoyang, Huacan, and Jingdian, ensure the safety of chip supply and increase the technical investment in IC packaging and intelligent manufacturing production centers. The downstream continued to vigorously expand the lighting industry, and accelerated the implementation of lighting facilities such as Yiwu and Xinyu and the distribution of sales outlets.
It is estimated that profits in the first half of the year will increase by 7.80%-47.00%, giving a “Buy†rating.
Considering the LEDVANCE consolidation, it is expected that the net profit for the period from 2018 to 2020 will be about 9.77/13.80/1932 million yuan. Consider the company's public offering plus matching financing of about 5 billion, the current share price corresponds to a market value of 25 billion, corresponding to 2018 PE25 times, buy rating.
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Shenzhen Unitronic Power System Co., Ltd , https://www.unitronicpower.com