Event
On August 25, the company released its 2018 semi-annual report. During the reporting period, the company achieved a total operating income of 396 million yuan, an increase of 5.01% over the same period last year, and a net profit of 75 million yuan, down-18.67% from the same period last year.
White Power's business growth is steady, and R & D investment supports long-term development.
In the first half of 2018, the company achieved operating income of 396 million yuan, an increase of 5.01% over the same period last year, and a net profit of 75 million yuan, down-18.67% from the same period last year. From a business point of view, the company's refrigerator compression parts business achieved revenue of 340 million yuan, an increase of 9.67% over the same period last year, while revenue of the military electronics business reached 50 million yuan, down 18.85% from the same period last year. The year-on-year decline in the company's homing net profit is mainly due to the impact of the reform of the national military establishment system, and the delivery of some orders has been delayed, resulting in a decline in business income and net profit of the military electronics business.
During the reporting period, the company's gross profit margin was 33.95%, down 5.17 percentage points from the same period last year. Among them, the gross profit margin of refrigerator compressor supporting products was 29.75%, down 3.03% from the same period last year; and the gross profit margin of military electronic products was 62.98%, down 8.56% from the same period last year.
The company has been committed to technological innovation capability and technological innovation capability for a long time. During the reporting period, the total R & D investment reached 18 million yuan, accounting for 4.63% of the operating income, an increase of 42.06% over the same period last year, providing a sustained growth driving force for the company's follow-up development. The company newly authorized utility model patents and invention patents a total of 5. So far, the company has been granted a total of 124 intellectual property rights, including 59 invention patents.
Build the whole industry chain of sea, land, air and space, and create a new growth point through the competitive launch of new products.
The electromagnetic spectrum business order will be landed in the second half of the year, and the military supporting business will also enter the harvest period. Huaqing Ruida, a subsidiary, has entered a stage of substantive business negotiations with a certain type of ATE integration manufacturer on electromagnetic spectrum security-related products, and is expected to sign long-term batch supply contracts in the second half of 2018. Huaqing Ruida's military supporting business has reached a long-term cooperation intention with three customers respectively, intending to grant Huaqing Ruida qualified supplier qualification and include it in the list of qualified suppliers. This new long-term customer will bring new incremental orders for the company. Secondly, Huaqing Ruida has reached the intention of jointly marching into shipborne equipment with a well-known enterprise and completed the preliminary technical demonstration and coordination work, and the shipborne equipment market will bring new profit growth points for Huaqing Ruida.
The new business of military electronics has created new performance growth points. High-speed signal processing series products: it has reached the intention of jointly marching into shipborne equipment with a well-known enterprise and completed the preliminary technical coordination work. It is expected to complete sample development and begin to undertake initial small batch orders in the second half of 2018. Avionics module:
A certain type of radio altimeter has successfully passed the final identification of the end-user organization and is expected to accept small batch orders in the second half of 2018. UWB signal acquisition and analysis system: the amount of contracts signed during the reporting period exceeded 10 million yuan, and many orders were obtained in the scientific research institutes of China Electronic Science and Technology Group, Aviation Industry Corporation of China, Aerospace Science and Technology Group and Aerospace Science and Industry Group. long-term and stable technical support and cooperative development have been formed with a number of research institutes. At present, the quality management system of national military standards, the qualification of weapons and equipment research, and the application for third-level military industrial confidentiality certification have been launched. it is expected that the company will make a breakthrough in the signing of military contracts after it is passed at the end of the year. Star sensor: with the development of civil aerospace market, Tianyin Star subsidiary has added new customers such as Hainan micro-nano, zero weight space, nine-day micro-star and so on, with a contract amount of 3.539 million yuan. Foreign trade exports showed a gratifying start, receiving orders and inquiry letters from many countries, including the United States, Saudi Arabia, Japan, Malaysia and Ukraine.
The effect of extension expansion is remarkable, and the industrial synergy effect appears gradually.
The acquisition of Leixin of the University of Technology will lead to land, sea, air and space, and actively expand the military, civilian and commercial fields. During the reporting period, Leixin of the University of Technology signed three contracts with the three Gorges Group, mainly to evaluate the impact of offshore wind power construction on radar, and participated in the marine economic innovation and development demonstration project "Cooperative Innovation of key equipment Industry chain of Deep Ocean Stereoscopic observation / Monitoring / Detection system" in Nantong during the 13th five-year Plan, with government support of 5 million yuan.
The company actively promotes the core technology product LD-JHC300 ground wave over-the-horizon radar in the domestic military industry, civil and foreign trade markets. Military: according to the needs of the military to carry out the development of ordered products, the equipment has been completed production waiting for delivery. In order to consolidate its position in the domestic military market, the company and the electronic institute team are carrying out the research and development of a new type of radar, and strive to complete the new model project within this year. Civilian: it has carried out in-depth cooperation with China Shipbuilding heavy Industry, Tsinghua University and other units in the field of marine exploration, striving to open up the market of over-the-horizon radar in the civilian field as soon as possible, and promoting the wide application of over-the-horizon radar technology in the national marine development strategic planning. Arms trade exports: planning radar deployment programs for several countries. While carrying out new radar research, we will cooperate with Harbin University of Technology to set up a new radar export project to strive for a larger foreign market.
Vertically integrate Weibo Corp component suppliers and give full play to the synergy of the industry. On July 19, 2018, Huaqing Ruida, a wholly-owned subsidiary, intends to acquire a 65% stake in Chengdu Yiwei Chuang in cash. Yiwei Chuangchuang is engaged in the design and production of microwave components, the main products include frequency source, frequency synthesizer, frequency converter, RF front-end and other key components of radar communication system. Yiwei is a supplier of Huaqing Rida, and has deep technical cooperation with the company in the field of radar and electronic warfare. This acquisition will help the company to strengthen the control of the technical status and R & D route of key components, combined with the technical accumulation of microwave components, to achieve unified planning and R & D of civil radar and electronic equipment products, and to achieve technical and price advantages relative to imported electronic instruments.
There is a huge market demand for frequency conversion controllers and the steady growth of white power business is expected.
Compressor starter: the company is one of the most powerful compressor starter enterprises in China. Affected by the implementation of the new national standard policy on energy efficiency of refrigerators and the adoption of new energy efficiency labels for household appliances in the European Union in the second half of 2017, frequency conversion controllers as the core components of high-end refrigerators, the market demand continues to rise. In the first half of 2018, the sales volume of refrigerator frequency conversion controller was 114 million yuan, accounting for 32.75% of the business income of refrigerator compressor spare parts, an increase of 86.27% over the same period last year.
In recent years, the domestic white power market has entered a development stage dominated by upgrading demand, and the future market demand will mainly benefit from the increment brought about by the continuous promotion of urbanization. energy conservation, emission reduction, green environmental protection and other requirements of technological upgrading and product upgrading stock replacement, consumption upgrading is irresistible: large-capacity, healthy, intelligent, artistic products will be increasingly favored. As the current market share of environmental protection and energy-saving products is still low, and there is a lot of room for upgrading, frequency conversion controller products will support the long-term and steady growth of the company's white electricity business.
Profit forecast and investment advice: military electronics business is developing rapidly, white power business is growing steadily, and buying rating is maintained.
The company carries out industrial integration around Huaqing Ruida, and will give full play to the synergy effect in the future. the market demand for military information products is large and the growth rate is fast, and several new military products create new growth points. The implementation of the new energy efficiency standard has laid the foundation for the popularization and application of frequency conversion refrigerators. there is a huge demand for accessories such as frequency conversion controllers and non-power starters. The company, as the leader in the refrigerator accessories industry, will continue to benefit. Home appliance business is expected to maintain steady growth. It is estimated that the company's net profit from 2018 to 2020 will be 225 million yuan, 280 million yuan and 344 million yuan respectively, an increase of 18.63%, 24.16% and 22.83% respectively over the same period last year. The corresponding EPS for 18 to 20 years is 0.52,0.65 and 0.80 yuan respectively, and the stock price PE before the corresponding period is 24, 19 and 15 times respectively.
