The company released the annual report, the performance of steady growth. During the reporting period, the business mainly focused on RF coaxial cable products, with business income of 471 million yuan, an increase of 27.32% over the same period last year, of which the sales revenue of RF coaxial cable and components was 363 million yuan, an increase of 38 million yuan or 11.53% over last year. The consolidated statement realized a net profit of 54 million yuan belonging to the owner of the parent company, an increase of 21.53% over the same period last year.
Benefit from the prosperity of 5G, wearable and other consumer electronics industries, and expand the application of military industry. There is a strong demand for consumer terminals and Internet of things products suitable for 5G signal transmission, and the demand for radio frequency coaxial cable for single equipment and the price of coaxial cable for terminal products are increasing together. this has led to the growth of the company's demand for low-loss, fine and ultra-fine RF coaxial cables and other main products. The company's customers are mainly medium and large electronic equipment manufacturers, and the terminal electronic products served by customers include Apple Inc, Samsung, Hewlett-Packard, Lenovo, TP-LINK and many other world-famous brands. The company has established long-term strategic cooperation with a number of military enterprises to jointly develop aerospace, electronics and other military RF coaxial cables.
Raise investment to expand production capacity and enrich the echelon of products. The fund raised is no more than 350 million yuan to build a high-speed and high-stability RF coaxial cable project with an annual output of 400,000 km for communications and aerospace. After reaching production, the internal rate of return of the project is 19.84% (after tax), the payback period of project investment (after tax) is 5.69 years, and the total number of non-publicly issued shares does not exceed 16 million shares, which has been approved by the CSRC. In the aerospace RF coaxial cable, the company also has a customer base.
Profit forecast: the operating income from 2020 to 2022 is expected to be 5.07,6.30 and 753 million yuan respectively, and the net profit is 0.61,0.73 and 88 million yuan respectively. Excluding the non-public offering to increase the share capital for the time being, the EPS is 0.76,0.91 and 1.10 yuan respectively. PE was 39.19,32.73,27.11 times. Maintain the "overweight" rating.
Risk hint: systemic risk, fund-raising projects are not as expected.