The company released its semi-annual report for 2020. In the first half of 2020, the company achieved an operating income of 695 million yuan, an increase of 61.45% over the same period last year, an operating profit of 116 million yuan, an increase of 62.74% over the same period last year, a net profit of 99.3982 million yuan belonging to shareholders of listed companies, an increase of 69.43% over the same period last year, and an EPS of 0.39 yuan per share, an increase of 100% over the same period last year.
Seizing the opportunity of wind power development, adhesive revenue has increased significantly. Under the influence of China's wind power market policy, the company's orders and sales revenue of structural adhesive products for wind power blades increased significantly compared with the same period last year. Through continuous research and development to improve business capacity, from January to June 2020, the company's adhesive products achieved sales revenue of 615 million yuan, an increase of 71.42% over the same period last year. Among them, the sales volume of wind power epoxy structural adhesive in the first half of 2020 was nearly 13500 tons, an increase of 140% over the same period last year; the sales of solvent-free polyurethane laminated adhesive maintained steady growth, taking the lead in the domestic market share of solvent-free laminated adhesive.
Speed up the integration of resources and further improve the layout of the military industry. In 2018, the company formally cut into the field of military electromagnetic compatibility through the acquisition of must-control technology, integrated upstream and downstream resources, and expanded electromagnetic compatibility products and their extended products. The company has newly participated in the power supply and electromagnetic compatibility design of a certain type of aircraft in the national aviation field, and dozens of newly developed power supplies and electromagnetic compatibility products have been tested together, providing a new growth point for the follow-up company's performance. In April, the company announced that it plans to build the "Chengdu Kangda Electronics Southwest Industrial Base Project" in Chengdu, including electromagnetic compatibility, aerospace electronic system-level equipment, military electronic adhesive, electronic components testing and other industrialization projects, to further improve the layout of the company's military science and technology industry.
Increase investment in R & D innovation, shareholding plan to stimulate the enthusiasm of employees. In the first half of 2020, the total investment in research and development was 36.168 million yuan, an increase of 11.51 percent over the same period last year. Remarkable progress was made in product research and development, and one patent for invention and three patents for utility model were newly obtained. The company pays attention to human resources, and the first phase of the employee stock ownership plan has been transferred, which has achieved good results in retaining and motivating employees.
Profit forecast and investment advice. It is estimated that the EPS from 2020 to 2022 will be 1.01,1.26,1.47 yuan respectively. With reference to the valuation of comparable companies, the company will be valued at 27-32 times PE in 2020, corresponding to a reasonable value range of 27.14-32.16 yuan per share, with a rating of "better than the market".
Risk hint. The risk of declining prosperity of macro-economy and downstream industries, the risk of market competition, the risk of rising raw material prices, and the military business is not up to expectations.