In contrast to the negative rumors and stock price changes in the market, the recent performance forecasts announced by some Apple supply chain manufacturers seem to be more optimistic.

Editor’s note: This article is from the micro-channel public number “Economic Observer” (ID: eeo-com-cn), Author: Li Jingheng.

One||Not only OFILM, the stock prices of many other Apple suppliers have also undergone significant changes in the market during this period.

II||The current A-share Apple supply chain stock price has reflected the negative. In the future, Chinese manufacturers still have the advantage of obtaining orders from overseas competitors.

Recently, many domestic Apple suppliers have frequently reported negative news. On January 26, OFILM (002456.SZ) issued an announcement on the company’s stock price changes. The announcement stated that the cumulative deviation of the closing price drop on 3 consecutive trading days on January 21st, 22nd and 25th was more than 20%. According to the “Shenzhen Stock Exchange Trading Rules” and other relevant regulations, it belongs to abnormal stock trading fluctuations. According to statistics, OFILM’s stock price fell 7.26%, 7.98% and 6.24% on the 21st, 22nd and 25th, respectively. As of the close of trading on the 26th, OFILM offered 11.24 yuan, an increase of 1.08% on the day.

A few days ago, media reported that Guangzhou Delta Imaging Technology Co., Ltd., a wholly-owned subsidiary of OFILM, would be sold to Luxshare Precision Industry Co., Ltd. The aforementioned announcement stated that as of the date of the announcement, the company and its subsidiaries had not signed any agreement or reached any preliminary intention with Luxshare Precision as of the company’s verification.

At the same time, the announcement also stated that the company currently plans to sell all or part of the assets of related subsidiaries. The scope of related subsidiaries does not exceed: Guangzhou Delta Imaging Technology Co., Ltd., Jiangxi Huiguang Microelectronics Co., Ltd., Nanchang OFILM Display Technology Co., Ltd. and Jiangxi Jingrun Optical Co., Ltd.

So why does OFILM plan to sell the assets of so many subsidiaries? A reporter from Economic Observation Network asked Ou Feiguang about this, but the other party did not give a reply as of press time.

According to the 2019 financial report of OFILM, the total assets of these four subsidiaries totaled 11.339 billion yuan, accounting for about 28% of OFILM’s total assets; total operating income was 11.362 billion yuan, accounting for about 22% of OFILM’s total operating revenue. As for the specific progress of the sale of assets, the announcement emphasized that the scope of the specific transaction target, transaction object, transaction method and transaction price are still under discussion, and there is no substantial progress. It is expected that this transaction will not constitute a major asset reorganization and will not involve related transactions. , There is still greater uncertainty.

In addition, the announcement also stated that the company’s current operating conditions are normal, and there has been no major change in the internal and external operating environment.

OFILM was established in 2002 and listed on the Shenzhen Stock Exchange in 2010. Its main business includes micro camera modules and fingerprint recognition modules.And other microelectronics business, touch screen and touch display fully bonded modules, and smart car electronic products and services. The company is an important supplier of domestic and foreign mobile phone manufacturers such as Apple and Huawei.

01 Apple’s supply chain market is turbulent

In fact, it’s not just OFILM. During this period, the stock prices of many other Apple suppliers have also experienced significant changes in the market.

On January 22nd, affected by Apple’s rumors of order cuts, the stock price of Lens Technology (300433.SZ) plunged 9.3%, Xinwei Communication (300136.SZ) fell 6.98%, and Changjiang Electronics Technology (600582.SH) fell. 6.82%.

However, in the face of investors’ questions, relevant companies denied that the company’s production and sales were affected. On the 22nd, Lens Technology stated on the interactive platform of its official website: “The company does not have any undisclosed information that should be disclosed, and the company’s production and operations are all normal.” As for the rumor that large customers cut orders, Lens Technology said: “Company customers and product structure Healthy, sufficient orders, strong market demand.”

On January 23, Xinwei Communication also stated on the interactive platform: “At present, the company’s projects are progressing smoothly, the company’s operations are normal, and production is scheduled according to customer orders. At the same time, it will expand customer orders on the sales side and meet on the production side. Actively promote cost reduction and efficiency enhancement.”

Actually, rumors about Apple cutting down orders have been circulating as early as last year. On September 1, 2020, there were rumors that Apple removed OFILM from the supply chain list, and related touch module orders went to Lens Technology. On the same day, Ophelia’s stock price fell to the limit, while Lens Technology rose sharply. Later, OFILM and Lens Technology both rejected this rumor.

In addition, Luxshare Precision (002475.SZ), which is also an important Apple supplier, was affected by the US 337 investigation. On January 25, Luxshare Precision announced the “Announcement on the Progress of the Section 337 Investigation by the US International Trade Commission”. The announcement pointed out that on January 22, the company was informed of two notices issued by the United States International Trade Commission (USITC) on this case, one is the notice of investigation and the other is the notice of designating the chief administrative judge. Luxshare Precision said: “The company will follow the 337 investigation process.”

On January 25, Luxshare Precision’s stock price fell by 3.97%, and on the 26th it fell by 4.4%, closing at 52.78 yuan.

According to the announcement, on December 18 last year, the Amphenol Group filed an investigation application against Luxshare Precision and some of its subsidiaries to the U.S. International Trade Commission in accordance with Section 337 of the U.S. Tariff Act of 1930. Allegations that the company and its subsidiaries have infringed their patent rights on certain electrical connectors and shells, their components and downstream products exported to, imported and sold in the United States.

Luxshare Precision said that after investigation, the company currently has 5 US patents involved in this 337 investigation, which are related to conductive plastic technology and terminals.The horizontal injection molding technology is independently developed and designed by the company and applied to high-speed external IO connector products.

Finally, Luxshare Precision also emphasized: “This 337 investigation will not have a substantial impact on the company’s current production and operations.”

A reporter from the Economic Observer Network tried to interview Lixun Precision. The other party said: “The current progress of this matter has been written into the announcement. It is not convenient to reply to other specific questions.”

It is understood that Luxshare Precision is the main manufacturer of Apple’s Airpods and a component supplier of iPhone. In July last year, Luxshare Precision invested 3.3 billion yuan to acquire Wistron Investment (Jiangsu) Co., Ltd. and Wistron Information (Kunshan) Co., Ltd., with the intention of expanding the iPhone business.

According to reporters’ statistics, the share prices of other Apple suppliers have also experienced cumulative declines of varying magnitudes in the past week, such as Pengding Holdings (002938.SZ), USI (601231.SH), Dongshan Precision (002384.SZ), and Dongshan Precision (002384.SZ). SZ), Goertek (002241.SZ), Changxin Technology (300088.SZ), etc.

02 The recent performance forecast is still optimistic

However, in contrast to the negative rumors and stock price fluctuations in the market, the recent performance forecasts of some Apple supply chain manufacturers seem to be relatively optimistic.

On January 23, OFILM’s 2020 performance forecast announced that the net profit attributable to shareholders of listed companies was 810-910 million yuan, an increase of 59%-78% over the same period last year. The announcement also stated that in 2020, the company’s operating conditions will be good, with a large year-on-year increase in net profit; the primary reason for the growth in performance is the rapid growth of the company’s optical imaging business and the continuous increase in optical lens production capacity and shipments; the second is due to the increase in orders and orders from some major customers. The sales volume of tablet computers increased and the Android touch business developed independently. The touch business structure continued to be optimized, and profitability improved significantly.

On January 26, Lens Technology also released its performance forecast for last year. The net profit belonging to shareholders of listed companies was approximately 4.88-5061 billion yuan, an increase of 98%-105% over the same period last year. The announcement stated that the primary reason for the performance changes of Lens Technology was because the company successfully acquired several downstream manufacturers and promoted vertical integration.

As for why A-share Apple suppliers perform poorly in the near-end period, Tianfeng Securities analyst Guo Mingchi analyzed in a recent report on Apple’s industry chain that the reason is that AirPods’ shipment growth in 2021 is lower than expected And the competition among Chinese manufacturers has intensified.

Guo Mingchi further pointed out that the current A-share Apple supply chain stock price has reflected the above-mentioned negative. In the future, Chinese manufacturers still have the advantage of obtaining orders from overseas competitors, so he is still looking at the long-term trend of A-share Apple supply chain.

“We think that the A-share Apple supply chain stock price is about to usher in a rebound, but the trend of individual stocks will be more obvious.” Guo Mingchi predicted so.

Essence Securities also analyzed in a research report published on January 25 that in Apple’s supply chain, the mainland’s share advantage is concentrated in parts, especially mechanical parts, and the share of electronic parts and assembly is concentrated in Taiwan, China. . Due to low assembly profit margins, traditional ESM foundries are currently facing pressure on profitability and cash flow, while mainland parts suppliers form a virtuous circle in terms of parts, profit margins, and customer relationships. In the future, they will have advantages in cutting from parts to downstream assembly.