Event: the company released the third-quarter report of 2019, the company's operating income from January to June 2019 was 1.669 billion yuan, an increase of 3.56% over the same period last year; the net profit belonging to shareholders of listed companies was 79 million yuan, an increase of 6.53% over the same period last year.
Benefiting from the information construction of national defense, military products have maintained steady growth. The company has been focusing on the scientific research and production of optoelectronic defense products, and many kinds of light weapons sight, stability control optoelectronic system and detection and interference system are in the leading level in China, and a number of military models are the first in China. some products are supplied exclusively to the military. In the field of key area monitoring, the company is the only military industrial unit designated by the State Border Defense Commission to be shortlisted for land defense and coastal defense monitoring at the same time, and has established long-term cooperative relations with various border defense offices, provincial and municipal coastal defense and port anti-smuggling offices, armed police border defense forces, and customs. According to the goal of "making great progress in information construction and building a modern military force system with Chinese characteristics that can win information wars and effectively perform missions and tasks" put forward in the outline of the 13th five-year Plan for military construction, we believe that the company will benefit from the acceleration of national defense information construction, and optoelectronic defense products are expected to continue to maintain steady growth.
Enter the consumer electronics market, the prospect of civil products business is broad. After the company completed a major asset restructuring last year, its main business covers precision optical components, optical accessories, photosensitive resistors and other upstream products in the optoelectronic industry, as well as downstream products in the optoelectronic industry, such as optical devices, optoelectronic complete machines, optoelectronic system integration, etc., forming an industrial pattern of parallel development of military and civilian products. In the field of projection display, the company is one of the few domestic enterprises that have the production capacity of design and development of projection machines, and can cover two mainstream technical solutions of DLP and 3LCD at the same time. At present, it has established cooperative relations with well-known projection brands at home and abroad, such as Storm, Nuts, YouPai, Oriental Central Plains, BenQ, etc., and its products cover a variety of projection modes, focal lengths and various types of light sources. It covers home entertainment, digital cinema, engineering, business education and other application fields. In addition, the company's periscope microprism and other optical products have been successfully matched with Huawei P30 series mobile phones, and there are broad prospects for entering the consumer electronics market.
Profit forecast and investment rating: the company's net profit from 2019 to 2021 is expected to be 201 million yuan, 241 million yuan, 313 million yuan, EPS is 0.77 yuan, 0.92,1.19 yuan, corresponding to PE is 27 times, 23 times, 17 times, given a "buy" rating.
Risk hint: the progress of military delivery is not as expected; competition in the consumer electronics market intensifies.