Main points of investment:
The company is the industrialization platform of the Institute of Optics and Machinery of the Chinese Academy of Sciences. The Institute of Optical Machinery is one of the largest research institutes of the Chinese Academy of Sciences with strong scientific research strength. According to the promise: any amount of military products used for scientific research purposes will be injected into listed companies after delivery.
The company is the target of the scarcity of pure information military stocks. The company's optoelectronic measurement and control instrument products are the industry leader, with a market share of up to 30%. Photoelectric measurement and control instruments mainly include photoelectric theodolite, aerospace camera, TV goniometer, radar antenna pedestal, etc., which are widely used in various fields of national defense informatization, and are the key equipment of national defense informatization.
The company's multi-products fill the domestic gap. Backed by the Institute of Optics and Machinery of the Chinese Academy of Sciences, a number of products break foreign monopolies and fill the domestic gap. The company is the only supplier of high-end CMOS chips in China, the leader of absolute raster ruler, and the pioneer of the first foreign body detection system on airport pavement in China.
Profit forecast and valuation. Based on conservative expectations, we assume that the company's military orders will remain at the 2015 level, and the pace of industrialization of civilian products will continue at the 2015 level. It is estimated that the EPS from 2016 to 2018 will be 0.34,0.52 and 0.53 yuan respectively, corresponding to 99 times the PE in 2018. Considering that the company is short of targets for information-based military stocks, military orders may exceed expectations in the context of accelerated information construction, and give them a recommended rating.
Risk tips: military orders fluctuate, the industrialization of the company's new products is blocked, and the market expansion of civil products is not as expected.