Marine information equipment leader, later injection can still expect the company as the absolute leader of domestic marine information equipment, through two capital operations, China Shipbuilding Group's underwater information equipment main assets have been injected into the company, become a domestic underwater acoustic detection, underwater communications leading enterprises. China Shipbuilding Group's positioning of the company is the electronic information asset platform, external radar, electronic communications assets are more high-quality. According to estimates, we estimate that the average annual market capacity of warship electronic equipment in China is about 13.4 billion yuan, which is 3.3 times of the company's revenue in 2019, and there is still a large space for asset securitization in the future.
At present, our army has basically realized mechanization and is moving towards informationization and intellectualization. Underwater information equipment is an important part of realizing the informatization of naval equipment. It is an important field of equipment development in the future. Underwater information equipment mainly includes underwater acoustic detection, underwater acoustic communication, underwater acoustic confrontation and other directions, with high industry barriers and few competitors. The company's Haisheng Technology, Liaohai equipment and Great Wall Electronics have all the independent intellectual property rights of underwater acoustic information products, covering high and new technologies such as underwater acoustic transmission and detection, marine physics, marine testing, and so on. it is currently the main supplier of military underwater information equipment in China. In 2019, the company's revenue from special equipment accounts for about 69%, with a high proportion of military products and little interference from the external economic environment, so it will fully benefit from the great development of equipment construction during the 14th five-year Plan.
Civil imported high-end underwater acoustic equipment to replace space huge sonar is very popular in ship manufacturing, fishing and other civilian applications. Domestic investment in civil sonar research and development is insufficient, and high-end sonar for marine information detection mainly depends on imports. In the future, with the continuous promotion of "Belt and Road Initiative" and marine informatization, the application market of high-end sonar will be further expanded, and the domestic substitution of high-end imported products will usher in the development opportunity.
Profit forecast and valuation analysis show that the company's return net profit from 2020 to 2022 is 740 million yuan, 860 million yuan and 980 million yuan respectively, and EPS is 1.04,1.21 yuan and 1.38 yuan respectively. The current stock price corresponds to PE of 30x, 26x and 23x, which is significantly lower than the average of similar companies. The company is obviously undervalued and continues to maintain the "recommended" rating.
The risk suggests that military orders are lower than expected and the growth rate of the civilian products market is declining.
