Main points of investment:
Maintain the "overweight" rating with a target price of 20.18 yuan. The company announced on the 19th that Huaqing Ruida, a wholly-owned subsidiary, intends to acquire a 65% stake in Chengdu Yiwei Chuang. This acquisition can play an upstream and downstream synergy and reduce costs. The company's layout in the military industry continues to improve, although the military business in the first half of 18 years is not as expected, but orders on hand have increased steadily, only delivery and revenue recognition have been delayed. The net profit of maintaining 18max in 1919 is predicted to be 2.5Compare 327 million, corresponding to EPS 0.58 and RMB0.76, and the target price is 20.18RMB.
Huaqing Ruida plans to acquire upstream parts suppliers to create benefits, which can reduce costs and ensure supply.
Chengdu Yiwei Chuang is a state-level high-tech enterprise mainly engaged in the design and production of microwave components, with outstanding profitability and a gross profit margin of more than 70%. It is one of the core suppliers of Huaqing Ruida. This acquisition will help both sides to further integrate technology and reduce costs. At the same time, it can also strengthen the company's control over key parts and ensure the delivery time of equipment and the reliability of products.
The future does not rule out that the company will further increase the vertical extension and layout of the industrial chain.
Military orders are moving forward steadily, waiting for time if we don't like it or be sad. Dislike: due to the influence of the reform of the national military establishment system, the delivery of some military orders of the company has been delayed, and the performance of the military business is expected to decline by 55% and 75% in the first half of the year. Not sad: the amount of orders-on-hand for military electronics business increased to 139.72 million yuan from 61.96 million yuan in the same period last year, an increase of 125% over the same period last year. Excluding passive growth orders (17H1 military revenue is 62 million, estimated by a 65 per cent decline in 18H1, 40.3 million less completed, hands-on orders actively increase to 99.42 million), and the active growth rate of hands-on orders is about 60 per cent.
Although the performance in the first half of the year is lower than expected, Huaqing Ruida's supporting equipment order has the certainty of the delivery time for the completion of the assembly by the end of the year, and the military performance is expected to be gradually released in the second half of the year.
Catalyst: refrigerator frequency conversion controller shipments exceeded expectations; new layout of military business.
Core risk: there is a risk of new entrants grabbing share in the home appliance business.
