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Sunlord Electronics (002138): Benefit from short-term demand, double share growth is expected to replicate Murata’s growth path in the long run

Sunlord Electronics (002138): Benefit from short-term demand, double share growth is expected to replicate Murata’s growth path in the long run
The report summarizes the 南京桑拿网world’s leading inductor suppliers.Sunlord Electronics was established in 2000 and was listed on the A-share market in 2007. It is mainly engaged in the research and development, production and sales of chip components such as inductors.The main products include laminated wound inductors, LC filters, electronic transformers, wireless charging coils, etc.The company’s global market share of inductors currently ranks among the top three in the world.Company revenue from 1 in 2007.2.5 billion increased to 23 in 2018.62 trillion, a compound growth rate of 27 in 11 years.8%; ROE remains above 10% throughout the year. Industry barriers are high, import substitution is accelerating, and domestic leaders have benefited significantly.High barriers are reflected in scale effects and customer certification barriers.In the case of continued price reductions of old products, continuous product upgrades are an inevitable requirement for the survival of inductor companies. Product upgrades require continuous research and development. Development has scale effects, and scale manufacturers have obvious advantages.Strict supplier qualification certification has created higher market entry barriers for new entrants and increased the advantages of existing scale manufacturers.The rise of local smartphone manufacturers accelerates the import substitution of inductors, and domestic leading manufacturers will obviously benefit. The first-rate service efficiency and high-quality customer resources help the company from excellent to excellence. Backed by a global electronics manufacturing base and an efficient sales model, Sunlord’s delivery cycle only takes 2-5 weeks, and the efficiency is higher than the main prominent 6-12 weeks.The company’s high-quality customer resources are not the source of the company’s needs, but also help Sunlord improve its own technical and management level, and help the company go from excellence to excellence. The short-term benefit inductor volume and price rose, and the market share increased.The demand and price of 5G drive inductors are rising at the same time, and the company’s market share brought by the acceleration of domestic substitution is the main logic for Sunlord Insulation to maintain high growth in the next 2-3 years; automotive electronics that have been deployed for many years have begun mass production replacement and entered the harvest period; The increase in the penetration rate of wireless charging coils and ceramic appearance parts is a new growth point for the company in the future. It is expected to replicate Murata’s growth path in the long run and be promoted to be a total solution provider for electronic components. Benchmarking Murata, the global leader in passive inductance, we believe that the transition from a manufacturer to a total solution provider is the long-term growth logic of Sunlord Electronics.The final component to module can increase the value of the company’s products; restructuring and transitioning the overall solution provider also helps increase customer stickiness, enhance customer conversion costs, and broaden the company’s moat. Give “Buy” rating and target price of 26.北京养生会所 14 yuan.We expect the company’s EPS to be zero in 2019-2021.75, 0.94, 1.23 yuan, considering the acceleration of the localization of inductors in the future, 5G will bring the volume and price of inductors and Sunlord’s competitiveness in the field of inductors. With reference to the company’s historical valuation, we will give Sunlord Electronics 35 times PE in 2019, corresponding to the target price2614 yuan, given a “buy” rating. Risk warning: 5G advances, 01005 inductance transition exceeds expectations; automotive electronics demand is lower than expected; slow import of inductors in the smart phone field; competition in the inductor industry is exacerbated.