Events:
In 2018, the company achieved an operating income of 213.5587 million yuan, an increase of 6.77% over the previous year's 200.016 million yuan, a total profit of 85.1028 million yuan, an increase of 64.07% over the previous year's 5186.95 million yuan, and a net profit of 7402.83 million yuan belonging to the shareholders of the parent company, an increase of 65.46% over the previous year's 4474.17. The main economic targets set by the enterprise at the beginning of the year have been completed.
Main points of investment:
The military business has grown steadily and changed to high value-added and high-tech weapons and equipment: the company has strong capabilities in military technology, scientific research, production and management. the products cover military equipment for the army, navy, air force, rocket army, strategic support units and initiating explosive equipment for public security and armed police against terrorism. It has a high reputation in the field of military explosive devices and plays an important role in the domestic military explosive device industry. The military business has achieved steady growth in recent years, and in the future, we will focus on the development of new military pyrotechnics products with high precision and high added value, changing from conventional weapons and equipment to high-tech weapons and equipment. under the condition of increasing product research and development and market development, the proportion of military orders and high value-added products is expected to continue to increase, and the profitability of military products will continue to increase.
Civilian product category advantage, first-in advantage is obvious, committed to new product research and development of shadow equipment: the company's civil product system is complete, compared with competitors in the same industry, has obvious product category advantages, with one-stop service ability. Customers throughout the country more than 20 provinces, cities and autonomous regions, and all levels of shadow weather departments good business relations, with the first-in advantage. At present, it is committed to developing all kinds of new shadow burning and blasting equipment, shadow operation equipment and meteorological equipment, and constantly improve and enhance the technical level of software and technology integration products of human shadow and meteorological equipment. In the field of artificial weather influence and meteorological equipment, the profitability is expected to be further enhanced by taking the road of serialization, informatization and engineering development.
The military-civilian integration strategy helps the company transform: the company actively promotes the construction of the military-civilian integration platform, increases investment in science and technology, cultivates the military-civilian integration industry, and extends the new technological achievements of the military industry to the civilian field. at the same time, we will extend the independently developed figure and meteorological equipment to the military field, actively develop a series of new products for military-civilian integration, and strengthen the transformation of dual-use technological achievements and the promotion and application of new products for military-civilian integration. Cultivate new momentum for the development of the company. Through the civil-military integration strategy to promote the company's business transformation, enhance the company's ability to adapt to the market and resist risks.
Profit forecast and investment rating: under the enterprise strategic pattern of attaching equal importance to the military and the people, flying together on both wings, and promoting business transformation, combined with the in-depth evolution of the national strategy of civil-military integration, the sustained growth of military expenditure and the reform of the military pricing mechanism, the company's performance shows a steady growth trend, under the management and control mode of persisting in innovation-driven, continuously increasing project R & D investment and reducing costs during the period. The company's profitability is sound. To grasp the development trend of the steady growth of military and civilian products business and the continuous enhancement of independent R & D capability of military-civilian integration, we estimate that the company's EPS in 2019-2021 will be 0.656 yuan, 0.719 yuan and 0.791 yuan, corresponding to PE 47.33,43.19,39.23 times, maintaining a "buy" rating.
Risk Tip: raising funds for investment project risk, security risk and civil-military integration policy are not as fast and effective as expected.