Goodix Technology (603160): Q3 performance maintained high growth, fingerprint penetration continued to increase under the screen

Goodix Technology (603160): Q3 performance maintained high growth, fingerprint penetration continued to increase under the screen

Event: The company released the 2019 third quarter report on October 25. In the first three quarters of 2019, the company achieved operating income of 46.

780,000 yuan, an increase of 97.

77%; realize net profit attributable to shareholders of listed companies.

12 ppm, an increase of 437 over the same period last year.

22%; net profit after deduction is 16.

21 trillion, an increase of 504 over the same period last year.

60%.

杭州风月网 Q3 single quarter profitability continued to maintain high growth, and the cost structure continued to optimize.

The company’s Q3 single quarter gross margin was 60.

79%, an increase of about 9 percentage points per year, mainly benefited from the increase in the transfer of fingerprint products under high gross profit margin screens; a 1-on-a-cycle replacement.

15 single, mainly affected by new IoT products.

The company’s Q3 single quarter net profit was 38.

82%, an annual increase of 17.

68 units, an increase of 2 from the previous month.

The 56 singles were mainly due to the company’s further optimization of its expense structure and improvement of operating efficiency.

The penetration rate of optical fingerprints under the screen continued to increase, boosting performance growth.

According to our statistics, almost all domestic large-brand mobile phones equipped with OLED are equipped with fingerprints under the optical screen. The penetration rate has increased according to last year. Thanks to the increase in the penetration rate of the product, the company’s third quarter performance has maintained a steady and rising trend.

As of now, there are 85 brand-owned products under the company’s optical screen fingerprints, and ultra-thin screen optical fingerprints for 5G will also be mass-produced. LCD screen optical fingerprints are also expected to be launched at the end of this year.Research is conducted to predict that the number of 5G mobile phones will reach 1 in 2020.

Between 500 million and 200 million, and the LCD screen still accounts for a large proportion of mobile phone models, the fingerprint chips under the two optical screens will open the company’s profit space next year.

In addition, the company actively builds IoT platforms through endogenous extensions to enhance market competitiveness.

Give “Buy” rating.

We are optimistic about the future of the fingerprint market under the optical screen.

Expected company 2019?
The EPS in 2021 will be 4.

72/5.

57/6.

26 yuan, corresponding to 42 for PE.

02/35.

58/31.

68 times.

Covered for the first time and given a “Buy” rating.

Risk warning: M & A progress is lower than expected, and new product development and promotion are lower than expected.