Event: the company released its annual report in 2018, with an operating income of 591 million yuan in 2018, an increase of 23.68% over the same period last year, and a net profit of 91 million yuan, an increase of 13.25% over the same period last year. The net profit after deducting non-profit was 84 million yuan, an increase of 8.82% over the same period last year, the net interest rate was 15.48%, and the net cash flow of business activities was 122 million yuan, a substantial improvement over the same period last year.
With the coordinated development of new and old business, the cash flow situation has been greatly improved. The company's electronic equipment and optoelectronic module production special equipment two-wheel drive coordinated development, revenue and profit to achieve steady growth. In the old business, the revenue of electronic equipment assembly equipment was 483 million yuan, an increase of 7.34% over the same period last year, of which the revenue from electronic welding equipment was 419 million yuan, accounting for 70.96% of the total revenue, an increase of 6.76% over the same period last year, and the gross profit margin was 39.13%, slightly lower than last year. The revenue of intelligent machine vision inspection equipment is 64 million yuan, accounting for 10.83% of the total revenue, an increase of 11.27% over the same period last year, and the gross profit margin is 42.11%, which is basically the same as that of the same period last year. In terms of new business, optoelectronic module production equipment achieved sales revenue of 91 million yuan, accounting for 15.40% of the company's overall sales revenue, an increase of 689.62% over the same period last year, making a breakthrough. Optoelectronic business has developed rapidly in recent years and will become a new growth pole of the company in the future. It is worth mentioning that in 2018, the net cash flow of the company's operating activities was 122.1047 million yuan, the cash flow situation improved significantly, and the continuous inflow of net cash flow of operating activities further ensured the stability and health of the company's business activities.
Attach importance to research and development, has won Beijing Oriental Mianyang AMOLED equipment order, second to none in China. In 2018, the company continued to increase its R & D investment, reaching 27.6126 million yuan, accounting for 4.67% of the current operating income. The company has made progress in the research and development and sales of OLED-related 3D laminating equipment, AMOLED external compensation equipment and optoelectronic module testing equipment, among which OLED-related 3D laminating equipment has broken the long-standing foreign technical monopoly and successfully developed a prototype for testing on the client side. the recent announcement shows that the company's 3D-Lami laminating equipment has won the bid for Mianyang BOE 6th generation AMOLED (flexible) production line project, with a winning bid amount of 81.2 million yuan. It is second to none in China. In the future, with the construction and expansion of downstream OLED, the company is expected to get more equipment orders.
Investment advice and rating: the company's 2019-2021 net profit is expected to be 154 million, 206 million, 268 million, corresponding to the PE of 34x25x19x, given the "overweight" rating.
Risk hints: macroeconomic downside risks; new product R & D verification is not as expected