Weir shares (603501): Howwell Technology (OV) breaks through the 48M technology king and returns to reshape the shape

Weir shares (603501): Howwell Technology (OV) breaks through the 48M technology king and returns to reshape the shape
CIS technology: With the advent of the 48M era, three core technologies have created high-end biology in the high-end market.CIS is the core component of mobile 合肥夜网 phone cameras, accounting for 52% of its value.From the development history point of view, the number of mobile phone cameras has been increasing. Currently, three cameras have become mainstream, and four cameras and five cameras are rising. Continuously improving, the 48M era is coming, and 64M is expected; therefore, the point technology has been continuously improved and has exceeded 0.8μm; After two technological evolutions, the quality of CIS imaging has continued to improve.At present, Sony, Samsung, and Howe have entered the 48M era. Through the three core technologies of point technology, image processing algorithms, and high-speed analog circuit design, the high-tech biology of the 48M market has been formed. Reshaping the shape: Howwell (OV) broke through 48M technology and the king returned.Prior to 2011, Howe was a leader in the CIS industry, but in 2011, Howe was replaced by Sony and lost Apple orders.Since then, the research and development has lagged behind Sony and Samsung, and the design model has lost to the IDM model, and the market share has dropped to the third in the industry.In 2019, Howell released OV48B, breaking through 48M technology, and announcing the return of the king.Although the Howe 48M technology still has a gap with Sony Samsung, it has exceeded 0.The key technology of 8μm is interrupted, and the addition of process upgrades also reduces the disadvantage of the design mode index IDM.With the rise of domestic mobile phone manufacturers, Howe is expected to usher in rapid development. Market space: The CIS market is broad, with 48M entering the thousand yuan machine grade.CIS has a wide range of downstream applications, including mobile phones, security, computers, automobiles and other fields. According to the latest data from IC Insights, the CIS market size is expected to grow 9% in 2019 to reach 15.5 billion US dollars, and the market size is expected to reach 21.5 billion US dollars in 2023.Redmi Note8, released in August 2019, will bring 48M from mid-to-high-end phones into the low-end thousand-yuan phone series, and 60% of smartphones will become the target market for 48M. Investment suggestion: The company acquires the strong combination of OV, and the synergy effect is significant.OV has released 48M products, and the king returns to the main shooting battlefield. It is expected that they will be launched in batches in 19Q4.Regardless of the consolidated statement, as the distribution business is affected by the downturn of the semiconductor industry boom and financial costs increase due to mergers and acquisitions, we lower the company’s 2019-2021 net profit forecast to 0 respectively.56、1.49, 2.6.7 billion (1 last time.62, 3.16, 4.700,000), according to the latest equity, the corresponding 杭州夜网论坛 EPS is 0.06, 0.17, 0.31 yuan, maintaining the “overweight” level. Pro forma profit: OV has released 48M products and is expected to be launched in batches in 19Q4.We expect the company’s net profit for 2019-2021 to be 3 after consolidation.56, 16.49, 22.67 yuan, EPS is 0.41, 1.91, 2.62 yuan. Risk analysis: The downturn in the prosperity of the semiconductor industry continues. The acquisition and integration synergy effect is lower than the expected risk, the 48M penetration is lower than the expected risk, and the industry competition is exacerbated.