The military industry business expands the layout, the characteristic advantage is obvious, the military industry electronic business aspect, the company industrial layout is perfect at the same time the characteristic advantage is distinct. In terms of industrial layout, the company's business covers upstream RF chips, midstream RF simulation, and downstream terminal applications (radar and drones). In terms of business development, the company has distinct advantages in the field of radio frequency chips, the company's SIP radio frequency chips have strong electromagnetic compatibility, small size and light weight; in the radar field, relying on the technical reserves of the Institute of Electronic Engineering and Technology of Harbin University of Technology, Raytheon ground wave radar of the University of Technology is in the leading level in China; in the field of drones, the company's products have outstanding anti-electronic interference capability.
Optical sensor leader, benefit from the space Internet construction of optical sensor is a major component of satellite attitude control and astronomical navigation. Tianyin Star, a subsidiary of the company, is the first commercial manufacturer of space optical sensors in China. Relying on the space technology accumulation of Tsinghua University, it is in a leading position in the subdivision field, with a domestic commercial satellite market share of 62% in 2018. With the acceleration of satellite Internet construction and the company's expansion into overseas markets, the demand for optical sensors will grow rapidly.
Benefiting from the development trend of energy saving and environmental protection, home appliance business continues to grow, the company's products are mainly refrigerator compressor starter, silencer, and frequency conversion controller. At present, the development trend of upgrading refrigerators to the direction of environmental protection and energy saving is clear. On the one hand, traditional refrigerators pay more attention to low energy consumption; on the other hand, the proportion of frequency conversion air conditioners increases rapidly. From January to November 2019, the sales of frequency conversion refrigerators in China increased by 15% compared with the same period last year. The company's low-power starter and frequency conversion controller products are fully in line with the industrial trend of energy saving and environmental protection, and will support the continuous growth of home appliance business.
Profit forecast and investment rating: the purchase and rating company's home appliance business benefits from the development trend of energy saving and environmental protection, maintaining steady growth; the layout of military electronic business industry is perfect, and the characteristic advantage is obvious.
With the start of the spring tide of satellite Internet construction, the business of optical sensors is expected to grow rapidly. It is estimated that the net profit from 2019 to 2021 will be 145 million yuan, 181 million yuan and 218 million yuan respectively, and the corresponding EPS will be 0.34,0.42 and 0.5 yuan respectively, and the corresponding share price PE will be 37 times, 30 times and 25 times respectively.
Risk tips: 1) sales of energy-saving refrigerators are not as expected; 2) satellite Internet construction is not as expected; 3) the company's market expansion is not as expected; 4) systemic risk.
