Actively recommend fund-raising projects, revenue and net profit grow steadily. The company's 2018 revenue was 370 million yuan, an increase of 14.12% over the same period last year, and its net profit was 44.1385 million yuan, an increase of 11.01% over the same period last year. In 2018, the company kept up with the market demand, increased cooperation with major customers, actively promoted the construction of fund-raising projects, continuously increased the intelligence of equipment and the upgrading and transformation of management system informatization, and realized the simultaneous growth of business income and profit level.
5G leads the upgrading of terminal products, and the company will usher in new development opportunities. The company's main products RF coaxial cable are widely used in mobile phones, notebook computers, televisions, wireless communications and other terminal electrical products, mobile base station construction in the field of mobile communications, as well as national defense, aerospace and other fields. With the gradual commercial use of 5G with higher spectrum and higher bandwidth, the upgrading of consumer electronic products and the substantial growth of Internet of things terminals have given birth to a huge market demand. The company has successfully developed new products such as ultra-low loss semi-flexible RF coaxial cable for 5G base station, low-loss ultra-fine RF coaxial cable for 5G mobile terminal antenna and ultra-low loss and ultra-strong bending refractive frequency coaxial cable for new flexible screen mobile phones. to lay a solid foundation for the industrial production in the 5G era.
The fund-raising project is advancing steadily, and the cooperation of major clients is stable. The company actively promotes the construction progress of fund-raising projects, laying a solid foundation for capacity release and performance growth during the 5G period. At the same time, with the ability of continuous innovation, advanced technology and good product quality, the company has successfully cut into the field of high-end RF coaxial cable occupied by multinational enterprises. In terms of customers, the company focuses on developing medium and large electronic equipment manufacturers, including Qiji Technology, Lianzhan Technology, PUL Technology, etc., and the final service terminal electronic products include Apple Inc (APPLE), Samsung (Samsung), Hewlett-Packard (HP), lenovo (lenovo), TP-LINK and many other world-famous brands, demonstrating the company's industry position.
Profit forecast and investment advice: it is estimated that the net profit from 2019 to 2021 will be 0.54 × 0.71 × 0.94 million respectively. The current stock price corresponds to the dynamic PE of 43X/33X/25X, maintaining the "overweight" rating.
Risk hint: downstream market expansion is not as expected.