The 2020 mid-year report is expected to increase by 50% and 80% compared with the same period last year.
The company issued a performance forecast for the mid-2020 report, which is expected to achieve a net profit of 0.88-106 million yuan in the first half of the year, a year-on-year increase of 50%, 80%, and the performance exceeded expectations. In a single quarter, the company's 2020Q2 will achieve a net profit of RMB 0.66-84 million, an increase of 106% Mel 163% over the same period last year, with a record high performance in a single quarter, mainly due to downstream wind power rush to install high prosperity and high certainty, full orders for wind power adhesive, and the military business gradually digested the impact of the 20Q1 epidemic and returned to normal.
Adhesive sustained growth is expected, optimistic about the company's military business development and layout 1) adhesive business: mainly in the field of wind power, the wind power rush assembly industry is expected to maintain high growth in the short term. In the medium to long term, the company has made rapid growth in areas such as flexible packaging, consumer electronics and rail transit outside the field of wind power. On the other hand, the company has entered the supply chain of overseas wind power giants Vestas and Siemens Gamesa, completing business docking with Vestas, and Gomeisa has entered the stage of trial production of small quantities of blades. Breakthroughs in adhesive business in other areas and overseas customers make the company expected to achieve sustained and rapid growth in the future. 2) military business: the company plans to build Chengdu Kangda Electronics Southwest Industrial Base, on the one hand, strengthen the subsidiary must control technology electromagnetic compatibility equipment business, on the other hand, ahead of the layout of the construction of electronic components testing center, to pave the way for the subsequent acquisition of Jinghanyu business. At present, the acquisition business of Beijing Hanyu may be delayed by the repeated progress of the epidemic in Beijing, but it is still making steady progress.
Investment advice: maintain a "buy" rating
We have raised the company's 2020-22 net profit to RMB 235,277 million (the previous value is RMB 166Universe 246m), corresponding to the PE value of 18-16-14 (estimated according to the progress of the acquisition, Jing Hanyu and 15% shock 70% shock 100% for 2020-22, respectively, and estimated net profit for 20-22 year 2.14Universe 3.09 billion yuan, corresponding to the PE value 17-11-9 times). Company "New Materials + military Industry"
Two-wheel drive: 1) as the leader of domestic wind power structural adhesive, it benefits from the high prosperity of wind power in the short term and the breakthroughs of overseas wind power giants in the medium and long term. 2) the rapid growth of military electronic business, the current further increase in the code of military electronic components testing service business, profitability is expected to be greatly improved. We give an one-year reasonable valuation of 24.51-28.19 yuan (corresponding to 2021 PE 20-23x) and maintain the "buy" rating.
Risk Tips:
The expansion of overseas customers is not as expected; the progress of acquisition is not as expected; the military business is not as expected.