Incheon Technology (002925) Company Review: Fourth-Quarter Performance Growth Growth Track Quality Momentum Strong

Incheon Technology (002925) Company Review: Fourth-Quarter Performance Growth Growth Track Quality Momentum Strong
Event: Yingqu Technology released the 2019 performance report, and the company achieved revenue of 38 in 2019.10,000 yuan, an increase of 37 in ten years.1%, realizing net profit attributable to mother 9.65 ppm, an increase of 18 years.6%; the company achieved 12 in the fourth quarter alone.10,000 yuan, an increase of 58 in ten years.6%, to achieve net profit attributable to mother 3.15 ppm, an increase of 51 in ten years.6%. The launch of IQOS 3DUO products has helped Q4 significantly improve its performance.The company’s performance in the fourth quarter showed an accelerating trend (Q1 / Q2 / Q3 / Q4 company revenues increased by 4).3% / 45.9% / 37% / 58.6%, net profit attributable to mothers increased by -9 each year.7% / 16.2% / 11.6% / 51.6%), we judge that it is mainly due to the substantial rebound in e-cigarette orders in the fourth quarter.IQOS 3DUO products were launched in the fourth quarter and gradually promoted globally. The demand for replacements and replenishment caused by new product launches is high.At the same time compared to 3.In terms of 0 products, 3DUO has realized two consecutive pumping, which has replaced some functions of IQOS Multi, which may lead to the redistribution of industry chain shares and help the company’s order growth. IQOS market prospects continue to improve, waiting for heavy volume in the US market.According to Philip Morris International Annual Report data, the number of global users of IQOS in 2019 will reach 13.6 million, an increase of 4 million compared to 2018, and an increase of 42%.From the perspective of the sales region, catalyzed by the rapid growth of the European Union and Russia, the conversion ratio of IQOS cartridges in the East Asian market has been replaced by 90% in 2017 and 51% in 2019, indicating that IQOS has been dominated by the east-east market.Of new tobacco products into new emerging tobacco products.According to Philip Morris International’s strategic plan, the number of global smokers is expected to reach 40 million in 2025, which still has nearly 200% improvement space.In the U.S. market, IQOS was first launched in the U.S. market in early October, and the FDA issued a special lecture in support of HNB, saying that it “helps protect public health.” Under the strict regulatory background of traditional e-cigarette electronic cigarettes, IQOS is optimistic to open the US market.Contribute to global business replenishment.Philip Morris International will submit an application for equipment upgrade to the FDA in the next few months. Once the equipment upgrade or MRTP (IQOS harm reduction tobacco product certification) is approved, the US market promotion will accelerate. Intelligent manufacturing leader, long-term growth without worries: the characteristics of the company’s products are gradually highly customized, core customers PMI, Cricut, Nestle and other representatives of the traditional industry leading electronic products, highly customized products and low price sensitivity of customersFeatures guarantee that the company has sufficient pricing power and high profitability.Deeply cutting into the front-end R & D and design of customers, ensuring customer reliability, and is expected to become a leader in the niche market formed by the electronicization of traditional industry 南京夜网论坛 leaders.Summary of the report, sales of innovative consumer electronics products such as household engraving machines and household icon pattern ironing machines have grown rapidly, and other products and businesses such as smart control components, automotive electronics and smart manufacturing overall solutions have grown steadily.We believe that the rapid growth of non-smoking business is conducive to consolidating the company’s revenue structure and reducing the risk of a single customer. Investment suggestion: Regardless of the contribution of the US market performance, we predict that the company will realize net profit attributable to its mothers in 2020-2021.5 ppm, an increase of 24 in ten years.5%, 20.6%.Corresponds to EPS2.62, 3.16 yuan, maintain “Buy” rating. Risk warning: IQOS market performance is lower than expected risk, international trade risk