Events:
The company announced its performance in 2019, KuaiBao. In 2019, the company expects to achieve operating income of 2.603 billion yuan, an increase of 0.74% over the same period last year, and a net profit of 95 million yuan, down 41.53% from the same period last year, corresponding to 0.37 yuan per share.
Comments:
1. The company's annual performance declined in 2019, and it is still optimistic about the long-term development of the company's military and civilian optical meta-components and optoelectronic defense products. (1) during the reporting period, the company realized a net profit of about 95 million yuan, a decrease of 41.53% compared with the same period last year, mainly due to the non-recurrent profit and loss of the company's investment income in 2018. among them, the disposal of the equity of the Arms equipment Group Financial Co., Ltd. in 2018 generated an investment income of 25.86 million yuan (before income tax). The long-term equity investment of the subsidiary Dianbang Optoelectronics has changed from cost accounting to equity accounting resulting in investment income of 33.73 million yuan (before income tax). (2) during the reporting period, the company completed major asset restructuring and continuously adjusted and optimized its product structure. According to the announcement issued by the company in January 2019, the company intends to purchase 100% equity in China Optics held by the Arms equipment Group by issuing shares, rather than raising about 351 million yuan in supporting funds through a public offering of shares. After the completion of this transaction, the company's product range will be further expanded to the downstream optoelectronic machine field, the new optoelectronic machine business, the main business scale and competitiveness may be enhanced in all directions. It is optimistic that the company's military and civilian optical meta-components and optoelectronic defense products will develop well for a long time.
two。 The military optoelectronic equipment industry is leading, and the civil consumer electronics market has a broad prospect. As one of the core suppliers of military optoelectronic equipment, the company has finalized a number of optoelectronic defense products and installed troops side by side, with batch production capacity; in the field of key monitoring business, it has gradually developed to the integration of multi-front-end product systems, and actively expand domestic and foreign markets. a number of domestic border and coastal defense projects have won the bid, which is expected to continue to benefit from the steady growth of military expenditure and the steady progress of information construction. In addition, the company actively distributes the civil consumer electronics market, optical components and lenses are continuously optimized and upgraded in the direction of components and modules, and emerging prism products form a first-mover advantage in the field of mobile phones; the projector is committed to optimizing and integrating and standardizing supplier management. with the design, R & D and production capacity of a complete industry chain from lens, optical engine to projection machine, there are broad prospects for follow-up development.
3. Earnings Forecast and rating: considering that the company is expected to continue to benefit from information construction and the vast space for the emerging consumer electronics market, we give the company a "recommended" rating. Our EPS forecast for the company in 2019, 2020, and 2021 is 0.36, 0.67, 0.88 yuan, respectively, corresponding to the PE in 2019-20-21, which is twice as much as in 66-35-27.
Risk tips: orders or delivery are not as expected; information construction process is not as expected; consumer electronics market expansion is not as expected
