Main points of investment
The company released its 2018 annual report: in 2018, the company achieved operating income of 378 million yuan, an increase of 23.42% over the same period last year, a net profit of 141 million yuan, an increase of 21.25%, and a net profit of 136 million yuan, an increase of 18.43% over the same period last year. The weighted average rate of return on net assets was 14.15%, down 2.17 percentage points from the same period last year.
The company's operating income and net profit basically keep pace with the growth, airborne suspension / launcher is still the company's main business. In terms of business, the operating income of airborne suspension / launcher was 321 million yuan, an increase of 42.04% over the same period last year, and revenue accounted for 84.91%, an increase of 11.13% over the same period last year. The proportion of this business in the company's main business further increased; the rest of the business accounted for relatively small revenue.
The gross profit margin of the company's main business was 71.08%, an increase of 3.12 percentage points over the same period last year, of which the gross profit margin of the main airborne suspension / launcher was 80.15%, down 4.10 percentage points from the same period last year, but still at a very high profit level.
The company's expenses during the period were 76.58 million yuan, an increase of 16.48% over the same period last year, accounting for 20.24% of operating income, a decrease of 1.2 percentage points over the same period last year. The increase in expenses during the period was mainly due to the increase in sales revenue and employee compensation. During the period of the company, the cost is well controlled, and the growth rate is lower than the income growth rate.
The company generated a non-recurrent profit and loss of 5.65 million yuan, an increase of 3.66 million yuan over the same period last year. Non-recurrent profit and loss accounted for 5.35% of the net profit, which was relatively small and had little impact on the net profit. The company recorded an impairment loss of 30.14 million yuan, an increase of 21.86 million yuan over the same period last year, mainly due to the increase in bad debt losses due to the increase in receivables and commercial acceptance bills receivable. The loss of asset impairment increased significantly, which caused a great negative pressure on the profit end of the company. If you add back the impact of asset impairment losses, the company's net profit will grow by more than 37%.
We cover the company for the first time and expect the company to achieve a parent net profit of RMB 1.63 million in 2019-2021, with a net profit of RMB 1.88 million and RMB 1.60 million for EPS, corresponding to the closing price of PE on April 9, which is times that of 41-35-30, with a "prudent overweight" rating.
Risk hint: the equipment loading structure changes, the main business income declines, and the new product loading progress is not as expected.
