Event: on December 19, the company announced that it recently signed a contract with a unit for the production of XX long-wave infrared imaging optical lenses with a contract amount of 74.25 million yuan, which will have a positive impact on the company's future business performance.
Core viewpoints
The infrared contract was landed and the model construction work of the 14th five-year Plan was launched. As the core supplier of missile optical system, the company has solved the problems of high-speed precision guidance and miniaturization, and is the main manufacturing unit of key components of more than 14 key models. The contract signed this time further consolidates the company's position in the field of optical guidance and indicates that the company's technical capabilities have been recognized and trusted by customers. Take this contract as the starting point of the 14th five-year Plan model construction, the follow-up supporting work is expected to accelerate, while the cooperation of other products will also continue to promote, laying a solid foundation for the company to enter the rapid development channel.
The company's business goes hand in hand, showing a positive trend of development. In addition to infrared orders, the company previously disclosed two winning projects on November 6, namely: construction of XX system in infrared XX environment, 36.85 million yuan, and optical target simulation subsystem, 8.8 million yuan. Considering the decline of the company's optical simulation business in recent years, this winning bid reflects the restart of downstream demand, indicating that with the release of missiles, simulation-related supporting demand has also ushered in a synchronous expansion.
The company's performance in 21 years is expected to usher in high growth. Due to the influence of the epidemic in the past 20 years, the work of order, delivery and confirmation has lagged behind, which has brought some operating pressure to the company. However, with the gradual fading of the adverse effects in various aspects, the company's orders have been intensively disclosed since November, and the amount has reached 120 million yuan in only two months, indicating that the demand for equipment construction has been very urgent. It is expected that with the further release of follow-up orders, the company is expected to achieve a larger sales scale in 21 years, while considering 20 years of low base and dilution of fixed costs, the profit end is expected to achieve faster growth.
Financial forecasts and investment suggestions
The intensive release of this round of orders indicates the start of model construction, the introduction of superimposed November equity incentives will fully mobilize the enthusiasm of the company, 21 years is expected to usher in a fundamental inflection point. It is predicted that the company's earnings per share from 2020 to 2022 will be 0.63,0.99,1.98 yuan respectively, with reference to the comparable company's 21-year evaluation valuation level, and taking into account the company's rapid performance growth to give a 25% valuation premium, corresponding to 60 times the valuation, the target price is 59.40 yuan. Maintain the buy rating.
Risk hint
Equipment demand is lower than expected; gross profit margin of optical test fluctuates; valuation premium risk