Events:
In 2019, the company achieved an operating income of 2.206 billion yuan, an increase of 56.23% over the same period last year, and a net profit of 280 million yuan, an increase of 83.46% over the same period last year. 2020Q1 achieved an operating income of 439 million yuan, an increase of 52.79% over the same period last year, and a net profit of 31 million yuan, down 23.32% from the same period last year.
Comments:
The military business has maintained rapid growth, and the impact of the short-term epidemic can be controlled. In 2019, the company's military electronics business achieved an operating income of 1.086 billion yuan, an increase of 42.74% over the same period last year. Of this total, the operating income of microwave circuits and components was 843 million yuan, an increase of 50.59% over the same period last year, and that of semiconductor devices was 110 million yuan, an increase of 87.99% over the same period last year. Affected by the epidemic, 2020Q1 has experienced delays in production and delivery and a decline in short-term performance, but the company has full orders on hand and will maintain rapid growth in the long run.
Yaguang Electronics has exceeded its gambling performance and will continue to benefit from national defense informatization and the construction of low-orbit satellite communication constellations. The company acquired 97.38% of Yaguang Electronics in 2017, and the annual compound growth rate of revenue and return net profit of listed companies in the past three years was as high as 55% and 150% respectively, showing rapid growth.
From 2017 to 2019, Yaguang Electronics completed deducting the non-return net profit of 166 million yuan, 227 million yuan and 312 million yuan respectively, exceeding the promised performance of 6.0852 million yuan, 6.2907 million yuan and 7.4484 million yuan respectively. The company has long been engaged in the field of radar, seeker and aerospace communications in the field of land, sea, air and space, and has a solid market position. At present, the national defense information construction of precision guidance and C4ISR system represented by our country is accelerated, and the company is expected to fully benefit; in addition, the company is deeply involved in the construction of Leo satellite communication constellation, and with the acceleration of Leo satellite communication constellation construction, it is expected to provide a new driver for the company's performance growth.
Profit forecast and investment suggestion: the company is expected to achieve operating income of 2.684 billion yuan / 3.299 billion yuan / 3.952 billion yuan in 2022, net profit of 351 million yuan / 461 million yuan / 563 million yuan, EPS of 0.35 yuan / 0.46 yuan / 0.56 yuan, and corresponding PE of 30 times / 23 times / 19 times respectively. The impact of the short-term epidemic can be controlled, long-term benefit from national defense information construction and satellite Internet construction, given a "buy" rating.
Risk hint: military production and delivery are not as expected; Leo satellite constellation construction is not as expected.
