Power Source (600405) Annual Report Commentary: Focus on the main business, stride forward and rebuild the glory in the 5G era

Power Source (600405) Annual Report Commentary: Focus on the main business, stride forward and rebuild the glory in the 5G era

The 18-year report is in line with market expectations. The 1st-quarter report of 19th has begun to release the 2018 annual performance report and the 2019 first-quarter report to the company.

The 2018 annual report shows that the company’s operating income is 9.

10,000 yuan, a decrease of 25 over the same period last year.

56%; net profit decreased by 2.

80,000 yuan, a year-on-year profit of 1999.

260,000 yuan, at least 0.

50 RMB.

The first quarter of 2019 performance report shows that the company’s operating income1.

670,000 yuan, an increase of 14 over the same period last year.

53%; net defect is 1838.

760,000 yuan, compared with 3242 expected in the same period last year.

450,000 yuan, reducing losses by 43.


That is initially feasible.

033 yuan.

The company’s annual and quarterly reports are in line with expectations.

The business structure has been adjusted to withstand short-term pains, and business highlights have continued to expand for many years. The company has been focusing on the research and development, manufacturing, sales and related technical services of power electronics related products.

In mid-2018, the external economic outlook is complex and grim. Overlaying the 4G construction closing cycle, 4G base station construction spending has decreased, and 5G base station construction has not yet expanded. Demand for the domestic communications power supply market has declined. The company’s communications business segment has seen a decline in operating income and a decrease in its main business.

At the same time, the company split the energy-saving service business and Shenzhen battery factory business, and made provisions for impairment of assets and provisions for bad debts.

Two effects led to a major breakthrough in 20182.

8 billion.

However, this is also a reflection of the effect of the company’s operating reforms-put down the burden and move forward lightly.

Although the company faces multiple operating pressures, we can also see from the annual report that the company’s operations in 2018 still have bright spots: 1) strategic planning to adjust the development direction, replace non-core businesses, and completely withdraw from the contract energy management projects currently under construction.Energy focuses on the three main industries of data communications, smart energy and new energy vehicles; 2) Deepening internal incentive mechanisms, establishing a partner system, and taking the lead in implementing this system in 西安耍耍网 the electric vehicle business, fully stimulating corporate vitality and improving operating efficiency; 3)Based on Xiong’an New District, lay out smart energy business-Taking the opportunity of Xiong’an smart city construction, the company will fully implement its long-term technology, products and overall solutions in the smart energy business.

Over the past 18 years, the company has successfully established multiple smart energy demonstration projects with customers such as PetroChina and Tower in Xiong’an, and has achieved good practices and social effects.

After 18 years of adjustment, we can also cast the effect of this business direction adjustment from the company’s first quarterly reported operating data: the company’s main revenue growth in the first quarter of this year.

53%, while operating costs increased by only 9 during the same period.

61%, financial expenses only increased by 12.

4%, sales expenses decreased by 22.

47%, which shows that the company has improved its efficiency in internal management.

Over the same period, management expenses increased by 26.

98%, R & D expenses increased by 38.

33%, reaching revenue.

50%, the proportion has been increased by 2 units. It can be seen that the company is still expanding and expanding.

The first quarter is the company’s off-season operation. The operator’s centralized power supply has not yet fully started. The company’s initial stage is mainly to prepare for this year’s centralized power supply. The order confirmation and replacement, plus the normal amortization of costs, especially the increase in management and research and development costs, ledQuarterly budget, but internal efficiency improved to 43 in the quarter.


With the recent implementation of operators’ mining and related projects, the company’s second-quarter revenue is expected to accelerate, and its operating results will be positive.

Deep power technology accumulation and intelligent manufacturing system establishment. As a company that has been in existence for more than 20 years, the company has unique advantages in technology and operation.

In terms of power supply technology research and product development, the company has formed a technology platform with different power levels from low power to high power, providing technical support for the rapid transformation of customer needs into products.The company has established three major research and development centers in Beijing, Shenzhen and Harbin. The research and development personnel account for 30% of the total number of research and development personnel, ensuring high product innovation and development capabilities.

The company has built an IPD integrated product development system, driven by customer needs, multi-domain parallel, full-process product development, effectively improving the development success rate of R & D projects.

By the end of 2018, the company has participated in the formulation of more than 50 national or industry standards for various types of power supplies, and has gradually obtained more than 200 various patents and software copyrights.

The supply chain system of an electronics company is of vital importance. It has a direct impact on improving product quality, extending delivery cycles and improving customer service capabilities, and has a decisive impact on its profitability.

Since the beginning of this year, the company’s main business has further expanded, and the scale effect of raw material procurement and product production has gradually expanded, and the company’s product cost advantage will be further highlighted; at the same time, because different products have similar production processes, the company can flexibly allocate between production linesCapacity to respond to conflicting production peaks and respond quickly to market demand.

In terms of suppliers, the company has a competitive advantage in raw material procurement through the company-level strategic project procurement e-commerce platform, which provides a strong guarantee for cost control.

In addition, the company has comprehensively promoted the upgrade of the “smart manufacturing factory” in Anhui, introduced multiple automatic production lines, introduced automatic testing equipment such as AOI / ICT / ATE and MES manufacturing execution system to achieve the full process barcode system tracking of the company’s products.

By directly reflecting the product through rate of each link in the daily production to the company’s management, the product quality was effectively controlled, and the overall optimization management of the production process was achieved.

Focusing on the main energy industry, relying on overseas markets and the 5G cycle to regain growth The company’s total core products are the three major industries of data communications, smart energy and new energy vehicles, and provide customers from products to overall solutions and completeFull life cycle services.

Among the existing core products, the market share of communication power products is higher. The company is one of the core suppliers of major telecommunications operators and tower companies in the world; EPS products and module power products are also leading the industry.

In addition, around the development and utilization of new energy, the company has launched a full range of automotive power supply products and power system assembly products, as well as DC-DC power supplies for hydrogen fuel cells and fully sealed liquid-cooled charging modules, which have become industry star products.

The region where the company’s business has made major breakthroughs since 18 years is overseas sales.

The company’s communication power products have been successfully applied to telecommunications operators in nearly 50 countries and regions, and the sales scale and profits have increased compared with the same period last year. Among them, the company has accumulated sales contracts of USD 20.67 million with Russian customers, occupying the first share of the Russian communication power market.With Norwegian Telenor, E.

CO, Zong and other equipment manufacturers cooperate to carry out supporting sales for major customers, and at the same time promote global 5G services and start the construction of base stations. The company’s 5G solution power solutions have made breakthroughs in South Korea and some EU countries. This is the future overseas businessFurther expand the foundation of development potential.

With the start of the 5G construction cycle, the company’s communications business line operation team continues to deeply explore the industry market, refine services and supporting facilities, and actively develop new products with the “high efficiency”, “intelligence”, and “Internet of Things” product development paths.The development of the company ‘s next-generation “intelligent” communications infrastructure operation and maintenance platform, “Power Cloud”, has completed the integration of power environment monitoring, and transformed it into a combination of power cloud and big data centers to enhance platform operation capabilities.

At present, the actual scenario application of the integrated integration of photovoltaic substrates and hybrid energy power integrated systems has been completed, and the station has been successfully established and operated.

5G micro-modules and micro-station power supplies have been successfully launched, and the functions and application scenarios of 240 / 336V high-voltage DC power supplies have been improved, which is the basis for strategic transformation.

The profit forecast takes into account that the communications industry is currently in the initial stage of 5G, and the demand for communications power products is still in its infancy. The company’s power products will be in a steady recovery period in the next 2 years, and new energy products are also in the promotion period. For the company’s short-term performanceThe pull is limited, but it is of great significance to the company’s long-term development.

After the business adjustment in 2018 and the company’s resources re-integrated, we are optimistic about the company’s development trend in the next three years.
2021 revenue will reach 13.

19 billion, 18.

46 ppm and 24.

9.3 billion, the corresponding net profit attributable to mothers was 48.23 million, 1.

$ 4.4 billion and 2.

17 yuan, give the company a “buy” rating.

Risk warning: 5G construction is less than expected, operators’ power product purchases are less than expected, and new energy vehicle business progress is less than expected.