Summary of the report:
Set up an industrial investment fund to help the company transform its military industry
The company, Luxin Venture Capital and Xi'an Municipal Government guidance Fund jointly set up Xi'an military and civilian Integration Industry Fund, which demonstrates the company's determination to enter the military industry. At the same time, the production investment project helps the company accumulate military industry resources and is conducive to the development of the company's military business.
Military products are expected to meet rapid growth.
With the gradual landing of the military reform, Shikai science and technology military orders are expected to show compensatory growth in 2018, and the subsidiary "Jiheng Optics" has the ability to develop high-quality optical systems, and is expected to achieve matching in high-end applications in the future. become a new profit growth point for the company. In addition, military informatization has achieved initial results. Shikai Science and Technology has been successfully shortlisted for the list of independent products of the switch, laid out the field of independent controllable informatization, made a breakthrough in a military communications project and an independent controllable R & D order, and continued to expand in the field of military informatization. More orders for military projects are expected.
Rail transit communication products will become a new profit growth point for the company.
Fuhua Yuqi continues to maintain high growth in rail transit communications, and a series of products have been used by "Fuxing". In the future, the delivery of "Fuxing" and the network transformation of charging high-speed rail will gradually increase.
In the field of on-board network, the company maintains high R & D investment and provides comprehensive solutions for in-vehicle communications, covering in-car network, voice, video, monitoring and other businesses, and has been extended to subway, urban rail and other fields. will create more performance growth points.
Profit forecast and investment suggestion
It is estimated that the return net profit of the company in 2017-18-19 is 0.78 million RMB, respectively, and the EPS is 0.12, 0.20 and 0.27 yuan, respectively, and the corresponding PE is 51-31-22. For the first time, it will be given an "overweight" rating.
Risk hint
The progress of military reform is not as expected, affecting the implementation of military orders; the company's new product research and development progress and market expansion are not as expected; the development of the coal industry is not as expected.