Main points of investment
1. Mainly with fine RF coaxial cable, the gross profit margin of the stable phase series is the highest, and the profit picks up.
Thin RF coaxial cable accounts for about half of the company's main revenue. Semi-flexible and semi-rigid RF coaxial cable has surpassed the stable phase and military standard series since 2014 to become the second largest source of income. The gross profit margin of the stable phase series is the highest, and the gross profit margin of subtle, semi-soft, semi-rigid, very fine, military standard coaxial cable hovers between 25% and 27%. The company's fine and ultra-fine products achieve mass production on a large scale, and the stable phase series represents the domestic advanced level. The company's net profit rose 25.68% in 2015 compared with the same period last year. The company made a profit of 19.86 million in the first half of 2016, and the profit growth trend is expected to continue.
two。 The rapid development downstream promotes the growth of the RF coaxial cable market, and the growth rate of the domestic market exceeds the global average.
China is the largest manufacturer and demand country of RF coaxial cable. In the next few years, communication terminals, mobile communications, military electronics, aerospace and other industries will develop rapidly, and the demand for RF coaxial cable will also maintain rapid growth. In February 2015, the Ministry of Industry and Information Technology issued FDD-LTE licenses to boost industry demand. In the same year, China's RF coaxial cable market grew by 16.7% year on year, about 52.18 billion yuan, exceeding the global average growth level. According to the plan of the Ministry of Industry and Information Technology, 4G networks will be covered in all urban and rural areas in 2018, more than 80% of administrative villages will have optical fiber access to their homes, and the demand for RF coaxial cable will increase to 85.4 billion yuan.
3. Investment advice:
It is estimated that the company's net profit from 2016 to 2018 is 0.40,0.50 and 62 million yuan, corresponding to PE of 107,85,68 times. Give a recommended rating.
4. Risk Tips:
The fundraising project is not as expected; the development of the high-end field is not as expected.