In 2019, revenue increased by 15%, and performance increased by 74%.
The company achieved revenue of 1.066 billion yuan in 2019, + 14.84% year-on-year, and net profit of 140 million yuan, + 73.99%, in line with expectations. The gross profit margin / net profit rate of the company is 37.57% and 13.00%, with a year-on-year change of + 8.74 pct. The significant increase in profitability is mainly due to the fact that the price of adhesive raw materials is in the downward cycle, and the company has deeply promoted the key customer strategy and developed more cost-effective and stable products, and the terminal price tends to be stable. The company's sales / management / R & D / financial expense rates are 7.73%, 7.01%, 6.93%, 0.18%, and + 1.60, 1.43, 0.97, 0.42 pct, respectively. The overall improvement is mainly due to the company's increased investment in all aspects and the inclusion of required technology 19Q1 in the consolidated statement.
Wind power cut into the supply chain of overseas giants, military electronic components testing and acquisition continue to promote sub-business, 1) adhesive business income of 871 million yuan, year-on-year + 35.0%, mainly due to the high prosperity of wind power, the company's wind power blade structure adhesive products orders and sales revenue increased significantly, the income of epoxy adhesive used for wind power was 486 million yuan, + 65.21% last year. In addition, the business in the packaging field is sound, and the consumer electronics / rail transportation field has achieved good growth. At present, the company has entered the supply chain of overseas wind power giants Vestas and Siemens Gamesa, completing business docking with Vestas, and Gomeisa has entered the stage of trial production of small quantities of blades. The gradual introduction of overseas customers, open the company's growth space, is expected to achieve sustainable and rapid growth in the future. 2) the revenue of military electronic products is 164 million yuan, which is + 51.10% compared with the same period last year, mainly because the military business demand is good and the financial data of must-control technology 2018Q1 are not included in the consolidated table. 3) military testing: a framework agreement on the acquisition of Jing Hanyu, a leader in military electronic components testing, was signed at the end of 2019. At present, the first step has been completed to acquire 8.51% equity in cash, making steady progress. It is expected that the profitability of the company will be significantly enhanced after the acquisition.
Investment advice: maintain a "buy" rating
It is estimated that the company's 2020-22 return net profit will be 166 million yuan, corresponding to the PE value of 23-19-15 (considering Jing Hanyu's acquisition for 20-22 years and showing 20%, 70%, 100%, respectively, and the estimated 20-22 net profit for 20-22 years, 275,368 million yuan, corresponding to the PE value of 21-14-10), maintain the "Buy" rating.
Risk Tips:
The adhesive business is not as expected; the post-acquisition company integration is not as expected; the military business is not as expected.