The company is mainly engaged in the R & D, production, sales and service of a series of products, such as military optoelectronic cables and components, optoelectronic components, FC optical fiber high-speed network and multi-protocol network solutions, optoelectronic system integration, etc., which are mainly used in aerospace, aviation, warships, electronics, weapons and other military fields.
High-performance cable and component industry:
High-performance cables and components are the "blood" and "nerve" of modern high-end equipment, which are technically difficult, long research and development cycle, and there are strong qualification barriers and technical barriers. During the 14th five-year Plan period, the market space of aviation cables in China is about 12 billion yuan, of which the market space of military aircraft cables is about 9.5 billion yuan, and that of military UAV cables is about 769 million yuan. The demand for aviation cables towed by domestic large aircraft C919 is about 1.739 billion yuan.
FC High Speed data bus Industry:
The integration of avionics system is the cornerstone of fighter information and intelligence, and high-speed data bus technology is the foundation and key technology of integrated avionics system. During the 14th five-year Plan period, China's military FC market space is about 6.1 billion yuan, of which the FC market space for fighter jets and armed helicopters is about 4.482 billion yuan, the FC market space for military UAV is about 384 million yuan, and the market space corresponding to the transformation of FC destroyers in active service is about 1.215 billion yuan.
Investment suggestion
The company strips off its loss-making business, focuses on military cables and components, continues to optimize its product structure, and integrates epitaxial optoelectronic systems. It is estimated that the company's revenue from 2020 to 2022 will be RMB 797 million, net profit 1.62 million, net profit 1.62 million, and EPS 0.56, corresponding to PE 25.12, 22.30, 16.05 times. Cover for the first time and give a buy rating.
Risk hint
The business demand of FC bus is lower than expected; the risk of market share decline.