Falla Electronics (600563) Annual Report 2018 Review: Domestic Film Capacitors Lead to High-end Market

Falla Electronics (600563) Annual Report 2018 Review: Domestic Film Capacitors Lead to High-end Market

Affected by short-term policies in 2018, the revenue was less than expected in 2018. The company’s total operating income was 17 in 2017.

20,000 yuan, an increase of 1 in ten years.

4%; net profit attributable to shareholders of the parent company is 4.

52 ppm, an increase of ten years6.


Preliminary results of slower growth include: First, photovoltaic 5.

The impact of the 31 policy has led to a reduction in the number of orders from end customers; the second is the impact of Sino-US trade frictions, tightening domestic and external demand, and overseas revenue accounting for 35%, but a decline of 1.

17%; Third, due to the trend of LED lighting, the demand for supporting film capacitors for lighting has declined.

The short-term impact of policies and trade wars is limited, and long-term growth trends remain unchanged. PV policies and trade wars have overlapping effects on photovoltaic business and overseas revenue.

Beginning in the second quarter of 2018, the company’s single-quarter revenue exceeded the growth rate of 4%, 3%, and 1%, respectively, showing a downward trend.

The intensified market competition forced the company to actively expand mid-to-high-end customers in the fields of automobiles, photovoltaics, wind power, industrial control, locomotives, and home appliances. The gross profit margin of the company in 2018H2 remained stable despite weak growth.

The company expects to achieve operating income of 180,000 yuan in 2019, a year-on-year increase of 4.

65%, gross margin is about 41.


From the perspective of the global market, domestic film capacitor leaders have seized the starting line of the new energy vehicle market. From the perspective of the global market, film capacitor manufacturers such as Panasonic, Kemet, Epcos, Vishay, and Farah Electronics, etc.The development history is expected to continue to expand the financial and technical strength, leading the industry.

With the gradual shrinking of the traditional market, the focus of the industry’s competition has shifted to new energy and power electronics.

The company’s new energy vehicle business has now entered a period of rapid growth. The company has developed some ability to compete positively in the high-end product market and international giants. We are optimistic about the company’s future long-term development and continuous improvement of profitability.

Investment suggestion: Maintain “Buy” rating. We are optimistic about the development of new energy vehicles and photovoltaics: The new energy vehicles affected by national policies and the OBC and charging piles 杭州夜网 supporting new energy vehicles are growing rapidly. At the same time, wind power investment costsAs the wind power market declines, the wind power market is also growing steadily.

We expect profit for 2019-2021 will be 5 respectively.



79 trillion, corresponding to 21 respectively.



2x, maintain “Buy” investment rating.

Risk warning: raw material prices and exchange rate fluctuations; trade wars intensify.