Keep up with market demand, revenue and net profit grow steadily. The company predicts that it will achieve a net profit of 4174.82-45.7242 million yuan in 2018, an increase of 5% 15% over the same period last year. From a quarterly point of view, the company's Q4 forecast the median return net profit of 10.1947 million yuan, a slight increase from the previous month. In 2018, the company kept up with the market demand, actively promoted the construction progress of fund-raising projects, continuously improved the level of management, and achieved the simultaneous growth of business income and profitability.
With the rapid development of the Internet of things, 5G brings new growth. The company's main products are RF coaxial cable, including subtle, very fine, semi-flexible, semi-rigid RF coaxial cable, etc., which has been widely used in mobile phones, computers, wireless routers, digital cameras, game consoles, mobile communication base stations, precision medical and other equipment. The main product (pole) fine RF coaxial cable has the characteristics of small cross section, heat resistance, fire resistance, aging resistance, strong anti-interference ability, stable signal transmission, good bending performance and so on. At present, the growth rate of the number of Internet of things connections is accelerating. According to GSMA, the number of global connections will exceed 9 billion in 2018 and reach 25.1 billion by 2025. At the same time, 5G higher spectrum and bandwidth will also bring about the upgrading of electronic devices and give birth to a huge market demand. Through independent research and development and long-term technology accumulation, the company has become a leading enterprise in China and shared the market feast.
The cooperation of major clients is stable, and the fund-raising projects are progressing steadily. By virtue of its continuous innovation ability, advanced technology and good product quality, the company has created a significant industry brand advantage, breaking through the high-end RF coaxial cable field occupied by multinational enterprises, focusing on developing medium and large electronic equipment manufacturers, while the terminal electronic products served by customers include many world-famous brands such as Apple Inc (APPLE), Samsung (Samsung), HP (Hewlett-Packard), lenovo, TP-LINK and so on. Highlight the company's position in the industry. The company actively promotes the construction progress of fund-raising projects, laying a solid foundation for capacity release and performance growth.
Profit forecast and investment advice: the net profit from 2018 to 2020 is expected to be 45 million, 54 million, 73 million yuan respectively, the current stock price corresponding to the dynamic PE is 43 times, 36 times and 27 times, covering for the first time, given "overweight" rating.
Risk hint: the consumer electronics market is not as good as expected, and the progress of the Internet of things is not as expected.