Lance Technology, a star stock with a market capitalization of hundreds of billions in the past, is now worth only 44 billion yuan. For this reason, many investors question: what is wrong with the company? What caused the decline in performance and lower share prices?
Sustained performance loss
The predecessor of Lansi Technology is Lansi Technology (Hunan) Co., Ltd. established in Liuyang City, Hunan Province. It is mainly engaged in the production of functional windows for consumer electronic products and appearance protection components. Its downstream customers includeApple,Huawei ,millet classMobile phoneManufacturer. In March 2015, Lance Technology went public on the gem, then hit a record 100 billion market capitalization, thus becoming a star company in the capital market.
How did it ever occur to me that such a listed company was gradually in a downturn? One of the important reasons is that Lance Technologies relies too much on the Apple industry chain, and when Apple sales decline, Lance Technologies'performance also starts to decline.
According to the performance of Lance Technology in the first half of 2019, the company's total operating income in the first half of 2019 was 11.359 billion yuan, an increase of 4.27 percent over the same period last year; the net profit attributable to the shareholders of the listed company was-156 million yuan, down 134.12 percent from the same period last year; and the net profit attributable to the shareholders of the listed company after deducting non-recurrent profits and losses was-353 million yuan, an increase of 11.01 percent over the same period last year.
In fact, the company's performance suffered a downturn since last year. From the first quarter of 2018 to the first quarter of 2019, the company's deductible non-net profit has continued to show a downward trend, with varying degrees of losses since the first half of last year, according to Lance Technology's previous earnings data. Specifically, from the first half of 2018 to the first half of this year, the deduction of non-net profit for five consecutive financial periods, respectively, is-397 million yuan,-73 million yuan,-400 million yuan,-256 million yuan and-353 million yuan, respectively, the loss increased by 276.32%, 109.72%, 121.44%, 807.39% and down 11% respectively.
In addition, the gross profit rate of Lance Technologies reached 32.81% in 2011, and then declined all the way. It reached a stage low in 2015, rising to 27.96% in 2017, and then declined again. In the first half of 2019, the gross interest rate of Lance Technologies was 18.97%, which was 6.4 percentage points lower than that of the previous year.
According to the semi-annual report, as of June 30, 2019, there were 20 subsidiaries under the merger of Lance Technology. The company's total assets were 45.653 billion yuan, liabilities totaled 28.898 billion yuan, and the asset-liability ratio was 63.3 percent, up 2.9 percent from the same period last year. Among them, the short-term loan of the company is 11.003 billion yuan, compared with 6.57 billion yuan in the same period last year.
So, what is the reason that the gross interest rate of Lance Technologies continues to decline? In the face of increasing debt, what measures will Lance Technologies take to solve it? In view of the company's related financial problems, "Investor Network" has communicated with Lance Technologies related people for many times, and the other side has a good attitude, but ultimately failed to give a formal answer.
5G will help return?
Although Lance Technology's performance continues to decline, the recent release of Huawei's 5G phone has made the entire sector hot again. As a result, some organizations have also mentioned that "there is still a chance for the future of Lance Technology."
According to CICC, there are two main reasons why Lance Technologies has more opportunities than risks: first, in the second half of 2019, the shipment of new Apple machines still needs to be vigilant, but the doubling of Lance's ASP rear cover will bring upward resilience, and the overall mobile phone market is warming up quarter by quarter; second, in 2020, the innovation trend of glass case will continue, and 5G will also continue. Higher requirements are put forward for the curvature of glass case.
And the new modelIt is expected that the texture and color change of glass back cover will be one of the few innovations in this year. ASP of back cover will also be expected to double or improve. The elasticity of Lance's performance in the third-quarter stock season is worth looking forward to. At the same time, wearable, smart cars and other businesses have made good progress, contributing to growth.
In addition, according to IDC, "Global smartphone shipments have declined for seven consecutive quarters since the fourth quarter of 2017, but are expected to return to positive growth in the second half of 2019. Affected by this, CICC expects that in the second half of 2019 and 2020, the income growth rate of Lance Technologies will return to about 15% to 18%, and the net profit margin will rise to about 5%.
In response, Lance Technology also said in its semi-annual report, "the industry is at an important point in the coming of the 5G era. 5G communication technology will accelerate large-scale commercial use in major countries and regions around the world, and there will be a huge upgrade demand in the markets such as smartphones and smart cars." Downstream customers will have a significant increase in demand for the company's main products, other new intelligent terminals that rely on high-speed communication technology are also likely to achieve market breakthroughs, and the consumer electronics industry will usher in a new round of major development opportunities. "