Events:
The company issued the "2019 semi-annual performance Forecast". It is estimated that the net profit of returning home in the first half of the year is 50 million yuan to 60 million yuan, an increase of 62.84% and 95.41% over the same period last year.
Comments:
1. The company's performance continued its high growth trend in the first half of the year.
The company completed the reorganization of China Optics Group in 2018. In 2018, the company achieved a year-on-year increase in revenue and net profit of 55.34% and 237.74% respectively over the same period last year, while revenue and net profit increased by 23.38% and 198.99% respectively over the same period last year. The company predicted that 2019H1 performance would increase by 62.84% and 95.41% over the same period last year, continuing the trend of high growth. Among them, according to the semi-annual performance forecast, the company's 2019Q2 single-quarter net profit increased by 75% compared with the same period last year. The reason for the high performance growth in the first half of the year is mainly due to the company's focus on improving quality and efficiency, continuous adjustment and optimization of product structure, and stable growth in business performance and quality.
2. Military business is expected to continue to benefit from the construction of national defense informatization.
In order to give better play to the brand effect of "China Optics" and promote the coordinated development of military-civilian integration of the business of listed companies, the company has recently officially changed its name to "China Optics". The company's military products are mainly undertaken by China Optics, including a variety of light weapons sights, stability control optoelectronic systems and detection and interference systems, some of the military products are exclusively supplied to the military, as well as border and coastal defense monitoring products. The goal of strengthening the army of our country is to ensure that great progress will be made in information construction by 2020. With the continuous growth of military expenditure and the continuous promotion of military information construction, it is expected that the company will continue to benefit from it. And at the beginning of the year, the company completed a total of 351 million yuan of supporting financing projects (the issue price of 15.35 yuan per share, 22.84 million new shares), deducting intermediary fees, a total of 336 million yuan for medium optical capacity-building projects, which is expected to further enhance the strength of military products.
3. The optical business is expanded to consumer electronics, which has great potential for development in the future.
The company's optical business is mainly undertaken by the newly established subsidiary Lida Optoelectronics, and its leading products include lenses, prisms, optical lenses, optical accessories, photosensitive resistors, etc., and the application field has been extended to the field of consumer electronics. The company recently said on the Panorama network investor relations interactive platform that the company provides a large number of periscope microprisms and other core optical components for Huawei P30 series mobile phones, and has established a good cooperative relationship with Huawei. According to the MCW2019 conference, Huawei officially announced that it had shipped 10 million P30 phones worldwide, 62 days earlier than the previous generation P20 series, showing a strong sales momentum. It is expected that the company's consumer electronics business has great potential for development.
4. Performance forecast
The company's 2019-2021 net profit is expected to be 173 million yuan, 206 million yuan and 247 million yuan respectively, maintaining the "highly recommended-A" rating.
Risk hint: the progress of product research and development is not as expected; the competition in the civilian product market is intensified.
