Dianlian Technology's net profit doubled in the first half of the year: the stock price rose by more than 20% in two trading days

On July 13, Dianlian Technology released its performance forecast, predicting that the net profit attributable to the parent company in the first half of 2021 will be 183 million yuan to 193 million yuan, a year-on-year increase of 113.52% to 125.22%. During the two trading days of July 12 and 13, Dianlian Technology's stock price soared by more than 20%.

As for the reasons for the performance growth, Dianlian Technology stated: 1. The company was affected by the COVID-19 epidemic in the same period last year, and the semi-annual completed orders and sales orders decreased. During the reporting period, the COVID-19 epidemic was basically under control, and the completed orders and sales orders returned to normal growth levels;

2. The structure of consumer electronics customers was adjusted individually. The semi-annual orders from other leading consumer electronics customers of the company increased significantly year-on-year, and the operating income increased during the reporting period;

3. The RF connector-related businesses in non-mobile phone industries, represented by the automotive electronics industry, are growing rapidly; 

4. With the continuous expansion of business scale, the advantages of the platformization of precision manufacturing technology for major products have become increasingly apparent, automation efficiency has continued to improve, production costs have been more effectively controlled, and the gross profit margin of major products has increased year-on-year.

It is understood that in order to improve the in-depth layout of 5G millimeter wave and seize the opportunity in the future 5G millimeter wave market, Dianlian Technology has invested in part of the equity of Nanjing Maisike Microelectronics Technology Co., Ltd., further deepening the application of the new generation of information technology RF millimeter wave chip field. At the same time, the company also established Jiangsu Yilian Communication Technology Co., Ltd., which mainly focuses on the research and development and sales of customized module products for 5G RF millimeter wave chips.

In the new energy vehicle market, Dianlian Technology continues to focus on product chain layout formation and R&D upgrades, and continues to promote the research and development of 5G-oriented RF technology and interconnection products and the transformation of results. In the future, the company will focus on in-depth research on the application of automotive connectors in the Ethernet field and the connection direction in high-frequency environments, and will also consider opportunities in subdivided industries such as high voltage and high current. At the same time, on the basis of stabilizing its current market position in the mobile phone industry, the company will increase its expansion and promotion of non-mobile phone industries, especially the automotive connector industry.

Dianlian Technology said that the company's automotive connector products are currently undergoing certification with a number of new energy vehicle companies, and Huawei is an important customer of the company.