Events:
The company issued a performance forecast that it is expected to achieve a net profit of 131.3678 million yuan to 150.8297 million yuan in 2019, an increase of 35-55% over the same period last year.
Comments:
1. The dual main industries of home appliances and military industry promote the growth of the company's performance:
The company's main business includes refrigerator compressor parts business and military electronics business. During the reporting period, the operating performance of the company's home appliance parts business continued to show a steady growth trend, and the market demand for energy-saving products such as the company's main frequency conversion controllers continued to rise, leading to an increase in business income of the company's home appliance parts business. Benefiting from the growing demand for home-made independent controllable products, the effect of increasing R & D investment in the early stage of the company began to appear, and the business income and profits of the company's military electronics business increased significantly. It is estimated that the impact of non-recurrent gains and losses on net profit during the reporting period is about 21 million yuan.
2. With the rapid growth of military electronic business, satellite optical sensors are facing an outbreak of demand:
The military business has initially formed a pattern covering all segments of the "land, sea, air and sky". According to the company's semi-annual report, in 2019, the operating income of the military electronics business reached 71.5743 million yuan, an increase of 42.68 percent over the same period last year, and a gross profit of 46.79 million yuan, an increase of 48 percent over the same period last year. We believe that in the final stage of the 13th five-year Plan, the demand for military products is determined, while the commercial aerospace industry is also faced with rapid growth opportunities, and the company's military electronic products performance will maintain rapid growth. At present, the company's military electronics business is mainly carried out through subsidiaries:
1) wholly-owned subsidiary Huaqing Ruida's main products: (1) electromagnetic spectrum security related products: including radar target and electronic warfare simulator, communication signal and interference simulator, artificial intelligence cognitive electronic warfare simulator, broadband complex electromagnetic environment radiation array, navigation and communication signal verification system, ATE radio frequency excitation source, etc. (2) Avionics module products: including avionics display and control module and radio altimeter for large and medium-sized fixed-wing aircraft, helicopters and drones. (3) the series of high-speed signal processing platform products have been applied in the field of electronic reconnaissance and digital narrowband receiver. (4) Fox Falcon Anti-Electronic jamming UAV: the winning military's "13th five-year Plan" related electronic warfare unmanned projects.
2) the UWB signal acquisition and analysis system can be used in the fields of deep space exploration, radar, electronic reconnaissance and wireless communication.
3) holding subsidiary Tianyin Interstellar: satellite optical sensors are the main components of satellite attitude control and astronomical navigation, accounting for 515% of the satellite manufacturing cost. at present, Leo satellites are facing explosive growth. Spacsx,oneweb, Amazon.Com Inc and other companies have put forward a large number of constellation plans, and China Aerospace Science and Technology and Aerospace Science and Industry Group has also put forward Hongyan and Hongyun plans. As the first commercial manufacturer of space optical sensors in China, the company occupies a large market share in the field of optical sensors of commercial satellites, and is facing the upcoming domestic market demand and actively expanding overseas markets.
4) Leixin, a subsidiary of the University of Technology: the main products are ground wave over-the-horizon radar, ground penetrating radar and other new system radar and radar core components. The new system radar represents the development trend of modern radar, and has the advantages of anti-radiation destruction, anti-jamming, anti-stealth and so on. GPR mainly faces the market demand of highway maintenance, mineral and oil exploration, urban underground pipe network detection and maintenance, ice and dam health monitoring, and has a wide market space.
3. The change of the actual controller and the introduction of state-owned capital are beneficial to the overall business development of the company:
On March 8, 2019, the listed company completed the equity agreement transfer, and the controlling shareholder was changed to Lanhai Ruixing, with a shareholding ratio of 28.5225%. The public assets management office of Nanhai District of Foshan City became the actual controller of the company.
The original controlling shareholder promised that the audited net profit of the listed company during the three-year period from 2019 to 2021 would not be less than 150 million yuan, 165 million yuan and 181.5 million yuan respectively, otherwise it would compensate Lanhai Ruixing. The introduction of state-owned real controllers will help to introduce more government, industrial, financial and other strategic and business resources for the company, and promote the overall business development of the company.
4. Performance forecast:
It is estimated that the company's net profit from 2019 to 2021 will be RMB 1. 5 billion, 1. 7 yuan and 187 million yuan respectively, corresponding to 31, 29 and 26 times PE, with a "highly recommended" rating.
Risk hint: the orders for national defense products fluctuate, and the growth of the traditional home appliance market falls short of expectations.
