Event: the company announced its annual report in 2019 that the company achieved operating income of 945 million yuan in 2019, an increase of 26.76% over the same period last year, and a net profit of 142 million yuan, an increase of 45.46% over the same period last year, corresponding to earnings per share (diluted) of 0.33 yuan.
Comments:
With the rapid growth of the company's performance in 1.2019 years, the company is optimistic about the long-term development of the company's military electronic business. (1) during the reporting period, the company achieved a total revenue of 945 million yuan, an increase of 26.76% over the same period last year, of which the revenue from refrigerator compressor parts business increased by 14.91% over the same period last year, while the revenue from the military electronics business doubled due to the increase in domestic demand for core components, an increase of 109.42% over the same period last year. The first batch order of Huaqing Ruida ATE equipment subsidiary was signed in the second quarter of 2019. (2) during the reporting period, the company achieved a net profit of 142 million yuan, an increase of 45.46% over the same period last year, which was higher than revenue, mainly driven by the following factors: the rate of sales expenses and management expenses decreased by 0.20pct and 0.85 PCT respectively during the ① reporting period; other income increased by about 4.07 million yuan during the ② reporting period, mainly due to various government subsidies and special funds The income from the disposal of the company's assets increased by about 7.247 million yuan during the ③ reporting period, mainly due to the holding of disposal gains for sale. (3) the cash flow of operating activities decreased, and the net cash flow generated by the company's operating activities during the reporting period was 50 million yuan (190 million yuan in the same period last year), a decrease of 73.56% over the same period last year, mainly due to the increase in the number of orders settled by bills. Most purchases are settled in cash, resulting in a decrease in cash inflows and an increase in cash outflows from operating activities.
two。 Core logic: under the background of localization and automatic control of core technology, the company's military electronic business such as ATE products and electronic warfare equipment is expected to enter a period of rapid growth; star sensors occupy a dominant position in the domestic commercial satellite market and are expected to be driven by the accelerated growth of the domestic low-orbit communication satellite market; the structural demand for frequency conversion products of refrigerator and compressor parts has improved significantly, and initial results have been achieved in overseas market expansion.
3. Profit Forecast: give the company a "recommended" rating, our EPS forecasts for 2020-21-22 are 0.40, 0.50, 0.63 yuan, respectively, corresponding to 2020-21-22, PE is 45-36-29 times.
Risk hints: product orders do not meet expectations; market expansion of civilian products does not meet expectations; information construction process does not meet expectations
