Event: according to the 2018 annual report, the company achieved an operating income of 2.422 billion yuan, an increase of 28.43% over the same period last year. The net profit returned to the mother was 57.9529 million yuan, an increase of 30.51% over the same period last year, and earnings per share was 0.11 yuan, an increase of 22.22% over the same period last year.
Main points of investment
The defense sector will continue to strengthen its development and build a core competitive advantage. During the reporting period, the company achieved revenue of 1.828 billion yuan in the defense business, an increase of 29.42 percent over last year, and a gross profit margin of 9.22 percent, down 4.25 percent from the same period last year. Due to the increase in the sales volume of the company's final assembly products and the confirmation of the price difference income of its external components, the revenue of the defense sector has increased greatly in this period, while the cost of defense products has increased by 35.77% over the same period last year, which is higher than the growth rate of revenue. As a result, the gross profit margin of the defense business has declined. During the reporting period, the company completed a number of bidding projects and patent applications in the three subdivisions of weapon system assembly integration, precision seeker and optoelectronic information equipment, among which the order of precision seeker continued to grow. the output continues to be the first in China and in the forefront of the world. At the same time, the company has further expanded new market areas through the newly developed car head-mounted display. In the future, with the continuous expansion of technological innovation and product field, the company's core competitive advantage will be further enhanced.
The product structure of optical materials and devices has been continuously optimized and its market share has been increasing. In 2018, the company's optical materials and devices sector achieved operating revenue of 566 million yuan, an increase of 25.5% over the same period last year, with a gross profit margin of 17.38%, a decrease of 3.07% over last year. Due to the rise in the price of raw materials in 2018, but the company did not increase the price of products, resulting in a decline in gross profit margin. By adjusting the product structure, improving the quality of related products and other measures, the company further increased the market share of optical materials and equipment products. In 2018, the production and sales of optoelectronic materials and devices increased by 25.7% and 30.95% respectively over the same period last year. Through the continuous optimization of product structure and quality, Xinhua Light Company has further expanded its market share, from 12% last year to 13%. In the future, the company will continue to improve the industrial chain of related products and its product lines, as well as increase the development of high-end optical materials and devices. At the same time of increasing the market share, further improve the competitiveness of products.
Risk hint: the degree of competitive procurement of weapons and equipment has increased, and the competition in the optical material market has intensified.
