The performance was in line with expectations and profitability declined slightly.
The company announced its 2018 annual report that its revenue was 591 million yuan, + 23.7% compared with the same period last year; the net profit was 90.98 million yuan, + 13.2% compared with the same period last year; of which the equity incentive fee for the current period was confirmed to be 16.41 million yuan; if this effect was not taken into account, the net profit increased by about 33.7%. The main reason for the company's performance growth is that the company's sales revenue of electronic welding equipment and intelligent machine vision inspection equipment has increased steadily, and the sales revenue of some of the company's special optoelectronic module equipment has increased significantly, forming a new profit growth point. During the reporting period, the company's sales gross profit margin / net profit margin was 38.38% / 15.48% respectively, year-on-year-4.23pct /-1.43pct, profitability declined slightly; during the period, the expense rate was 23.65%, year-on-year-0.1pct, and the expense rate remained stable. The net inflow of operating cash flow was 122 million yuan, ensuring the stability and health of the company's business activities.
New and old business two-wheel drive, OLED equipment is expected to expand
From the perspective of business segment: 1) the company's electronic machine assembly business grew steadily, achieving sales revenue of 483 million yuan in 2018, + 7.34% year-on-year, of which electronic welding equipment revenue was 419 million yuan, year-on-year + 6.76%, intelligent machine vision inspection (AOI) equipment revenue 64 million yuan, year-on-year + 11.27% 2) Optoelectronic module production equipment made a breakthrough, with sales revenue of 91 million yuan, accounting for 15.40% of the total revenue, an increase of 689.6% over the same period last year. The outstanding contributions in the optoelectronic business are biometric module production equipment and camera module production equipment, with sales revenue of 12.6964 million yuan and 73.4298 million yuan respectively. In addition, the company successfully developed 3D-Lami laminating equipment for OLED flexible screen, which greatly benefited from the wave of folding screen and the trend of localization of OLED equipment, and is expected to become a new performance growth point of the company.
Implement the equity incentive plan to enhance the cohesion of the company
During the reporting period, the company completed the registration procedures for awarding 3.45 million restricted shares to 87 incentive targets, and the implementation of the equity incentive effectively improved the stability of the company's talents. stimulate the motivation and creativity of the company's management team and core talents, but also help the company to attract and retain excellent management, technical and business personnel, and further stimulate the company's innovative vitality.
Profit forecast and investment suggestion
It is estimated that the company's net profit from 2019 to 2021 is RMB 1.64 million, corresponding to EPS 0.67 / 0.90, 1.16, and PE, respectively, to 31.7, 23.8, 18.4 times, maintaining the "overweight" rating.
Risk hint
The demand for electronic welding equipment is declining; the production progress of OLED is lower than expected; the competition in the industry is intensified, etc.