Revenue is growing steadily, and equity incentives affect performance. The company's 2018 revenue was 1.135 billion yuan, up 20.22% from the same period last year; the net profit was 62.0271 million yuan, down 23.65% from the same period last year; and the non-return net profit was 5.9762 million yuan, down 90.56% from the same period last year. The revenue end of the company is growing steadily, but due to a total of 74.51 million yuan in goodwill impairment and bad debt provision for accounts receivable, profits have dropped sharply compared with the same period last year, and the company has received 29.46 million yuan in compensation promised by Huarisheng performance. 2019Q1's revenue was 271 million yuan, up 4.01% from the same period last year, and its net profit was 14.1334 million yuan, down 13.77% from the same period last year. Faced with unfavorable factors such as slowing growth in some downstream industries and rapid rise in raw material prices, the company still maintained its revenue growth; Q1 gross profit margin was 24.61%, down 4.15pct from the same period last year.
The synergy effect appears when the enterprise group is set up. The company is a leading manufacturer of micro-nano structure products and technical services in China. It acquired Huarisheng in 2016 and added reflective materials and reflective products business.
In June 2018, the company joined its main subsidiaries to set up the enterprise group "Sudawig Group", which was divided into four major business groups to strengthen the planning and support for the business of the group's subsidiaries and technology research and development. give full play to the synergy of various business groups, public safety and new printing material business group revenue increased significantly in 2018, indicating that the material and touch business group business is growing rapidly.
Shows that the materials and touch industry group has great potential. IHS Markit expects shipments of large panels to reach 3000 million in 2019, up about 50 per cent from 2018. The trend of the global display panel industry turning to medium and large size is obvious. at the same time, the portability and ultra-thin requirements of photoelectric display thin film devices are getting higher and higher. Weiwang Technology actively increases the R & D investment of medium and large size light guide film and ultra-thin light guide plate. It has obvious technical advantages and has obtained the qualification of BOE supplier. The total number of customers has reached 74, driving the rapid growth of the company's display material business.
Weiyeda continues to develop the medium-and large-size touch screen market, and aims at the opportunity of the transformation of the display industry to large-size and flexible folding, step up research and development, and its independent research and development of M3 technology is progressing smoothly.
Profit forecast and investment advice: it is estimated that the net profit from 2019 to 2021 will be 1.11 million yuan, respectively. The current stock price will correspond to the dynamic PE of 38X/28X/22X, which will cover for the first time and be rated as "overweight".
Risk hint: customer expansion is not as expected; raw material prices have risen sharply.