This paper introduces in detail the business situation of Koth Technology Company, as well as the development of the downstream market, and forecasts the growth of related business.
China's leading supplier of military electronic information equipment: Kos Science and Technology, adhering to the concept of scientific and technological innovation, has been deeply ploughing military electronic information equipment for more than a decade, gradually transforming the research and development tasks and accumulated technical reserves into product advantages. at present, it has formed a perfect product echelon of mass production, small batch trial production and prototype development. The main products include four categories: command and control information processing equipment, software radar information processing equipment, portable wireless command terminals, other information processing terminals and special modules. in the future, we will further strengthen the research and development work in the fields of new generation command hardware equipment and supporting software, fire control system, intelligent wireless communication, and expand the product dimension.
The informationization construction of the army has entered a period of acceleration, and equipment has shown a universal development: China's defense expenditure budget in 2020 is 1.268 trillion yuan, which continues to maintain medium-to-high-speed and steady growth. at the same time, China's defense military expenditure continues to tilt towards informationization and actual combat. The proportion of defense equipment in military expenditure increased from 33.2% in 2010 to 41.1% in 2017. The report of the 19th CPC National Congress proposed that "great progress will be made in information construction by 2020". It is expected that China's defense and military expenditure will be tilted towards informationization. According to the Investment Promotion Bureau of the Ministry of Commerce, it is estimated that by 2025, defense information expenditure will reach 251.3 billion yuan, accounting for 40% of national defense equipment. The core areas are expected to maintain a compound growth of more than 20%, especially the development trend of industry generalization, which will bring growth opportunities for the company. At present, the company's two main types of command and control information processing equipment and other products will be gradually listed in all major areas of the army, driving the continuous improvement of market share and revenue and profit scale.
Strong R & D strength, deep ploughing for many years to form a first-mover advantage: since its inception, the company has always been committed to independent innovation, formed a professional R & D team, the main members are experienced, all have the working background of leading information technology enterprises or major military research institutes at home and abroad. At the same time, the absolute value of the company's R & D expenditure shows a rapid growth trend. Through years of continuous R & D investment, the company has accumulated a series of core technologies with independent intellectual property rights and industry leadership, and its products have been highly appraised by major military groups and enterprises, and obtained long-term and stable supplier qualifications. cast higher technology and customer barriers. The company plans to raise 1.307 billion yuan in IPO, of which 665 million yuan will be used for the R & D technology center construction project, and 442 million yuan will be used for the military electronic information equipment production base construction project, which will further consolidate the company's R & D capacity and expand its production capacity. At present, the company has sufficient orders on hand, and the growth prospect of the downstream market is good.
Profit forecast: we expect the company's net profit from 2020 to 2022 to be 303 million, 455 million and 568 million respectively. If the company is valued at 45 times in 2020, the company's target market value is expected to be about 13.6 billion. As the company has not yet been listed, it will not be given investment rating for the first time.
Risk tips: the risk of high concentration of major customers, the risk of fluctuations in the company's profits caused by military pricing, and the risk of raw material procurement.