Dongmu shares (600114): Huawei released MATE XS folding screen mobile phone contribution performance is expected to exceed expectations

Dongmu shares (600114): Huawei released MATE XS folding screen mobile phone contribution performance is expected to exceed expectations

Event On the evening of February 24, 2020, Huawei officially launched the Mate Xs, the second mobile phone with a folding screen.

Mobile phone hinges ushered in performance enhancement. MIM parts are an important part in folding screen mobile phones. The function of the hinge is to support rotation and connect the screen. Therefore, it must have greater rotation accuracy and friction coefficient.And other aspects are generally very demanding.

The Mate Xs released this time has a significant improvement over the hinge of the previous generation Mate X. The total number of internal parts has been increased to 150. The process can be divided into MIM, liquid metal and CNC.

Many parts of the hinge can be divided into two categories, one is a support member that remains fixed during rotation, and the other is a friction member in a rotating structure.

Among them, the relative volume of the support member is relatively strong and requires high strength. Mate Xs is the first to use zirconium-based liquid metal as a material. In terms of friction parts, due to the advantages of MIM technology in large-scale complex small parts, it is still impossibleAlternative choice.

The bending life of Mate Xs is expected to increase to 200,000 times, and MIM parts, which are key materials, are indispensable.

It is expected that Mate Xs will start the mass production era of folding screen phones. The company has significantly benefited from about Mate X. The upcoming Mate Xs has expanded hardware and software, and is currently the most powerful 5G folding screen phone.To truly start the mass production era of folding screen mobile phones.

After the successive acquisition of Dongguan Huajing and Fuchi Hi-Tech, the company has now become the largest supplier of Huawei mobile phone MIM parts, and is the core supplier of the Mate Xs hinge released this time. It will make full use of the volume of Mate Xs and subsequent folding screen mobile phones.

According to Air Force Huawei ‘s official monthly production target of more than 100,000 units of Mate X, we believe that the volume of Mate Xs and subsequent releases of folding screen mobile phones will significantly exceed 100,000 units / month.

The company has ranked among the world’s leading MIM players. The contribution of folding screen mobile phones is expected to exceed expectations. After the successful acquisition of Fuchi Hi-Tech, the company’s total output value of MIM has leapt to No. 1 in the country and No. 2 in the world.two.

We initially judge that Huawei Mate Xs and subsequent folding screen phones will contribute more than 10 million yuan in net profit to the company in 2020, and more than 40 million yuan in net profit in 2021.

It is expected that other mainstream mobile phone manufacturers will successively launch new folding mobile phones in the future. The company uses the industry leader positioning and Huawei, Apple ‘s core supplier brand effects, and strives to obtain more orders for folding screen mobile phone MIM parts.

We temporarily maintain the company’s profit forecast from 2020. It is estimated that the net profit attributable to the mother for 2019-2021 will be 2 respectively.

28/4.

16/4.

79 杭州桑拿 trillion, corresponding to 0 EPS.

37/0.

68/0.

78 yuan, corresponding to 41/22/20 times the PE, respectively, compared with 88/54/39 times the consensus expectation of Jingyan Technology, maintaining the “strong recommendation” level.

Risk warning: the risk of the production and sales of related products falling short of expectations; the risk of fluctuations in downstream demand.