The revenue of (01478-hk) 1h20 increased by 73.9% to RMB 8.8 billion, which was better than the expectation of China Thailand International. The main reason was that ASP of camera module increased by 99.6% year-on-year due to the optimization of product structure; the gross profit rate increased by 0.1% to 8.3% year-on-year, but decreased compared with 2h19, mainly due to the improvement of product structure and the impact of health events on shipment and production efficiency Net profit increased by 85.5% to 340 million yuan, which was 19.6% higher than expected, mainly due to higher income than China Thailand International; net profit after excluding the influence of other income and associated companies was about 300 million yuan, a significant increase of 60.4% year-on-year. < / P > < p > affected by the health events, the global sales of 1h20 smart phones dropped sharply. In this case, the sales volume of the company’s 1h20 fingerprint identification module increased by 5.8% year-on-year, reflecting an increase in its market share. Although the sales volume of camera modules decreased by about 1.3% year-on-year, the product structure improved significantly. The shipment of camera modules with 10 million pixels and above accounted for 72.8%, which was higher than the guideline of 60% in the whole year, of which 32 million pixels and above camera modules accounted for up to 27.5%, higher than the 25% guideline for the whole year. On the one hand, it reflects the trend of optical upgrading of mobile phones, on the other hand, it also reflects that the company’s supplier status in customers is still improving, and more high-end projects can be obtained. < / P > < p > the company pays attention to R & D. It is one of the three largest manufacturers of high pixel single camera module with 32 million pixels and above. It has successfully produced 64 million pixels and 18 million pixels products. It has completed pre research and mastered new technologies such as 5-fold periscope optical zoom module and ultra-fine range imaging module. It is expected to achieve mass production in a short period of time and successfully realize it in 1h20 Micro pan tilt anti shake technology, compared with the traditional optical anti shake angle increased by 2 times. In addition, the company has been promoting the second phase plant in India, which will improve the ability to respond quickly to the needs of overseas customers. Zhongtai International believes that the company’s R & D achievements and unremitting efforts as well as continuous expansion of production can better meet the needs of customers, further enhance the status of major customers and accelerate the development of overseas customers, and contribute to the continuous improvement of product structure. < p > < p > overseas health events and trade disputes are still the factors that affect the short-term mobile phone market, but it is expected that the impact of health events will gradually decrease. China’s mobile phone market is expected to recover under the acceleration of 5g process and the peak of new machine release. In the future, more optical demand will be brought by new IOT fields such as automobile and smart home. The company has obtained many domestic well-known automobile brand tier2 supplier qualification, and is expected to obtain specific project cooperation in the short term, laying the foundation for grasping the rapid development opportunities in the vehicle field in the future. < / P > < p > the bank adjusted its earnings forecast, and the earnings per share from 20 to 22 years were 0.67/0.78/0.93 yuan, and the target price was correspondingly raised to HK $17.2, equivalent to 20 times 21epe, a potential increase of 48.9% compared with the current price, reiterating the “buy” rating.