Main points:
Professional optical lens supplier. The company has a long history of development, has always focused on the R & D and production of optical lenses, and has accumulated profound military optical technology precipitation. Since its establishment in 2004, it has actively implemented the development path of civil-military integration, applied military technology to the civilian field, and has gradually developed into a leading professional optical lens supplier in China. The strength of many of the company's products has been among the first echelon in the world or in China, with a good market share.
Military-civilian integration leading enterprises. The company actively practices the development path of civil-military integration and creates a unique innovative mechanism for civil-military integration. Set an example in the industry in the sharing of R & D resources, the conversion of military technology to civilian use, the conversion of civilian technology to military use, the provision of production support for military products by civilian products, and the creation of a cultural environment for military-civilian integration.
The company's revenue and profit growth rate remained stable. In 2018, the company's operating income reached 552 million yuan, and the net profit returned to its mother reached 91 million yuan. Revenue in 2018 decreased slightly compared with 2017, mainly due to changes in demand for Dahua shares, the company's new products failed to complete the verification and supporting improvement of new products in Dahua shares before the decline in demand for existing products of Dahua shares, and sales of original products fell sharply.
The company's main products are optical lenses, optoelectronic systems and optical components, which are divided into customized products and non-custom products. Customized products are mainly used in aerospace engineering, space observation, missile guidance, border defense, coastal defense, warships, aircraft, rockets and other military equipment, including spaceborne, shipborne, arrow-borne, missile-borne and other lens products. The company's non-custom products are mainly security surveillance lenses, Internet of things and AI lenses, car infrared lenses, series.
The optical industry faces the frontier of science and serves the economic and social development in an all-round way, and it is also the forward position for the development of military-civilian integration. As a key functional device in the fields of space exploration, aerospace, national defense and military industry, high-end instruments and equipment, optical system is not only the forefront of many technological innovation and applications, but also the key to the implementation of major strategic projects in many countries. At the same time, optical products have gone deep into all fields of national society and economy to become basic facilities, and contribute to the improvement of the quality of China's development and the transformation and upgrading of the manufacturing industry on the main economic battlefield. The optical industry is a typical technology-intensive industry, which has always been the forward position of the development of military-civilian integration.
Profit forecast: we expect the company's income from 2019 to 2021 to be 6.35,7.55 and 922 million yuan respectively, and its net profit to be 0.99,1.14 and 140 million yuan respectively, with year-on-year increases of 9.37%, 14.33% and 22.62%, respectively. From 2019 to 2021, the EPS of the company is 0.65 and 0.91 yuan, respectively. As an enterprise of Science and Technology Innovation Board, the company has a large premium space. With reference to the valuation range of comparable companies Lianchuang Electronics, United Optoelectronics and Shunyu Optics, we think that the reasonable PE range of the company in 2019 is (35 minutes 48), and the reasonable share price range of the corresponding company is (22.75, 31.2).
Risk hints: intensified trade war between China and the United States, technological risk, business performance decline risk, market competition risk.