Data show that this year, institutional investors have investigated 77 Huawei concept companies, of which 52 have been surveyed by more than 10 institutions, and 20 have been surveyed by more than 50 institutions.
Industry analysis believes that the 5G era is coming. With the growth of Huawei's performance and Huawei's support for domestic suppliers, it is expected to promote the growth of Huawei's industry chain-related companies in the future.
12 companies surveyed by over 100 institutions
Data show that as of the press release on December 6, 12 Huawei concept companies have received intensive research from more than 100 institutions since the beginning of this year, including GoerTek (002241), BOE A, Lixun Precision (002475), and Hudian. Shares (002463), Xinwei Communication (300136), Zhongke Chuangda (300496), Zhuo Shengwei (300782), China Information (000555), Golden Card Intelligent (300349), Huagong Technology (000988), Shennan Circuit 002916), Fei Rongda (300602).
394 institutions, including Anson Securities, GF Fund, ICBC Credit Suisse Fund, and CICC Capital, conducted intensive research on BOE A. BOE A is one of Huawei's smart phone screen suppliers. In the survey, BOE A stated that the company's flexible AMOLED display products have been supplied to Huawei and other first-tier brand customers. In October, BOE A disclosed on Interactive Easy that Huawei is an important partner of the company. The company supplies several flagship products of Huawei, such as flexible AMOLED products for Huawei MateX folding screen mobile phones.
New Times Securities believes that the company's LCD business has both cycle and growth attributes, and the company has a clear advantage in the high-generation panel production line. In the future, as the market demand for large-size panels increases, it is expected to further capture more market share; in OLED The company broke Samsung's monopoly and became the second largest AMOLED panel factory after Samsung. Demand is strong after the capacity is released.
393 institutions surveyed Lixun Precision. On October 31st, senior executives such as Chairman and General Manager of Laxon Precision, Wang Laichun, received surveys from 70 institutions at its subsidiary in Kunshan, Jiangsu. Apple and Huawei are both Luxun Precision customers, and Luxun Precision won Huawei's "2018 Global Core Supplier Gold Award".
Lixun Precision stated on the interactive platform that with the advent of the 5G era, the company's base station antennas, filters and data center interconnection products will have sufficient market competitiveness. New Times Securities believes that the company, as the country's premier platform-based "precision and intelligent manufacturing" enterprise, will fully benefit from the development of consumer electronics innovation, IoT equipment, 5G communications, and automotive electronics.
Songhudian's main business is printed circuit boards (PCBs), and Huawei is one of its customers. The company's 5G PCBs have been shipped in bulk. In June of this year, Pacific Securities (601099) pointed out that the core supply chain of main communication equipment and modules and transmission equipment PCBs of China's telecommunications equipment vendors represented by Huawei is relatively closed. 70% share.
In addition, 147 institutions have investigated Huagong Technology since this year. In response to investors' questions on Huayi Technology, Huagong Technology disclosed that Huagong Zhengyuan, a wholly-owned subsidiary of the company, was again awarded the title of Huawei Gold Supplier this year, and is the only high-tech company in the optical device field to receive this award. The company provides Huawei with optical module products. The wireless series products account for more than 30%. The company's 25G optical module products are the first to pass Huawei certification in China and have received Huawei orders.
Huawei concept company receives much capital attention
According to Guotai Junan, in the Huawei industry chain, the market space for the five sub-industries of integrated circuit design, memory chips, PCBs, connectors, and optical modules is relatively large and the growth rate is fast. In the 5G era, communication construction, smart phones, and applications such as the Internet of Things and the Internet of Vehicles will bring broad growth space.
From the perspective of Huawei's performance, as of the third quarter of 2019, Huawei's sales revenue reached 610.8 billion yuan, a year-on-year increase of 24.4%; the net profit margin was 8.7%. Huawei has signed more than 60 5G commercial contracts with leading global operators, and more than 400,000 5GMassiveMIMOAAUs have been sent around the world.
7In July this year, Huawei founder and president Ren Zhengfei pointed out in an interview with the media that Huawei's 5G supply this year is 600,000 base stations, and it may reach 1.5 million next year.
From the perspective of the smartphone business, according to a Gartner report, Huawei is the only one of the top five global smartphone sales in the third quarter of 2019 to achieve double-digit growth. Huawei sold 65.82 million mobile phones in the third quarter, an increase of 26% year-on-year.
At present, Huawei continues to exert its efforts on 5G mobile phones. The Huawei Mate30 series 5G mobile phone was launched on November 1, the Honor V30 series 5G mobile phone was sold on December 5, and the Huawei nova6 series 5G mobile phone was released on December 5. Great Wall Guorui Securities pointed out that through the "Huawei" and "Glory" dual brands, Huawei has laid out a Huawei ecosystem with a smartphone as its core, which has also become one of the core forces in cultivating China's electronics industry chain.
Huawei concept companies are highly sought after in the secondary market. As of December 6, the data included 130 Huawei concept companies. Since the beginning of this year, the stock prices of the 110 Huawei concept companies have risen in a positive range. Among them, 59 Huawei concept companies have increased by more than 50%, and 33 Huawei concept companies have increased by more than 100%.
Industrial chain companies will benefit
AVIC believes that in the short term, 5G construction investment has entered an accelerated period, especially in the base station, antenna, and optical module industries, which are expected to usher in volume and price, and continue to be optimistic about the communications industry chain. The trend is becoming more apparent. As Huawei begins to support domestic suppliers, domestic upstream core materials, semiconductor components and other areas with higher technical barriers will benefit the most. It is expected to promote the rapid growth of company performance on the Huawei industrial chain in the future.
Fei Fei Rong Da is currently mainly engaged in electromagnetic shielding materials and devices, thermally conductive materials and devices, base station antennas and related devices and protective function devices, and customers include Huawei, Nokia, ZTE, Microsoft, Samsung, etc. The company's controlling subsidiary, Bowei Communications, has strong technical accumulation in stadium antennas, 4.5G special antennas and massive MIMO antennas. Since the beginning of this year, 110 institutions including Orient Securities (600958), SDIC UBS Fund, and Ping An Asset have come to the company for investigation.
飞 In the first three quarters of this year, Fei Rongda achieved revenue of 1.675 billion yuan, an increase of 84.72% year-on-year. In a survey conducted by institutional investors in early November, Fei Rongda said that Huawei's sales accounted for more than 20% during the reporting period. The growth of mobile phone terminals is on the one hand that Samsung mobile phones are being supplied this year, and on the other hand is the increase of Huawei customers; the growth of communication equipment is mainly some domestic substitution.
Tang Junnan, an analyst at Zhongyuan Securities (601375), pointed out that the domestic replacement of Huawei's supply chain was at the right time. In terms of the mobile phone supply chain, there is currently a localization trend. It is recommended to pay attention to the leading companies that have newly entered the Huawei industrial chain; PCBs, optical modules, filters, and antennas have relatively low technical barriers and strong domestic substitution capabilities. Enterprises; it is recommended to pay attention to companies that are new to Huawei's supply chain and have a large market size. Huawei currently has a small revenue share but is expected to expand its influence in the future.
Zhuo Zhuowei focuses on the research, development and sales of RF front-end chips, mainly providing RF front-end chips such as RF switches, RF low-noise amplifiers, and RF filters to the market. In the first half of 2019, the company became a qualified supplier of Huawei through a series of comprehensive assessments of Huawei's supply chain management department on the company's business qualifications, technical capabilities, product performance, R & D management and quality systems, cost competitiveness, and delivery capabilities. On September 26, Zhuo Shengwei stated on the Shenzhen Stock Exchange Interactive Exchange that the company had supplied Huawei and generated revenue.
Zhuo Shengwei has been called the RF leader in the research reports of many securities companies. Guoxin Securities believes that Zhuoshengwei is the invisible champion in the domestic RF chip field, and the space comes from the large RF platform. In the future, the upgrading of demand for 5G products drives the trend of upgrading RF products, and the company is expected to achieve domestic substitution and thus obtain better profitability.
Great Wall Guorui Securities believes that Huawei's domestic substitution strategy will bring an industry feast similar to Apple's industrial chain. Under the cultivation of Huawei, China's electronics industry is expected to usher in a wave of qualitative development.