The company is the main listing platform under the second hospital of Aerospace Science and Industry Group, and its main business is located in three sectors: security technology, medical devices and electronic information.

The successful completion of the acquisition of Aerospace Burke and Aerospace Jingyi has further enhanced its core competitiveness. The company gives full play to the role of capital operation platform of listed companies, actively around the industrial chain to carry out mergers and acquisitions, transfer work, to achieve further concentration of the company's main business. In 2018, the company's operating income increased by 40.31% year-on-year to 2.11 billion yuan, and the net profit of shareholders belonging to listed companies increased by 847.8% to 62 million yuan. The synergy effect of corporate capital operation is highlighted.

Security technology business market prospects, the company's leading layout, obvious advantages. According to the 2018 Mel 2023 China Security Industry Market Prospect and Investment Strategic Planning Analysis report, it is estimated that by 2023, the market size of the security industry will exceed one trillion yuan. As a leading marketer and service provider in the relevant domestic market, the company will fully benefit from the growth of the industry.

The pace of military asset securitization is accelerating, and the company plans to acquire Chaoyang Power supply. After the completion of this transaction, the company will be able to integrate the manufacturing capacity, technical resources, market resources and human resources of the target company, especially with the existing UPS and EPS power business of listed companies to form business coordination, form a more reasonable industrial structure, richer product types and more diversified business areas.

Earnings forecast and valuation: we estimate that the EPS of the company in 2019 will be 0.35,0.49,0.63 respectively, and the corresponding dynamic P / E ratio will be 39.1,28.1,21.9 times respectively. Be careful to give an "overweight" rating.

Risk tips: business performance is lower than expected; major asset restructuring approval risk; civil-military integration, mixed reform-related policy risks; high valuation risk of the company.