Summary of the report
Deeply ploughing the field of military transmission, the technical strength is in the lead in China. Quanxin Co., Ltd. is a private science and technology enterprise specializing in the R & D, production and sales of military optoelectronic cables and components, optoelectronic components, FC optical fiber network communication systems, optoelectronic integrated equipment and other products. Since its inception, the company has been focusing on the research and development of special cable technology for national defense and military industry. in terms of high-performance transmission cables and components, the company specializes in providing high-performance optoelectronic transmission cable products and transmission system technical solutions. Photoelectric cable product research and development technology and production strength is in the domestic leading level. The high-performance transmission cable produced by the company can replace similar foreign products, breaking the long-term monopoly of foreign companies in the field of high-performance transmission cable in our country. With the continuous improvement of the degree of informatization of weapons and equipment, the space for domestic substitution of military cables will be very broad.
With the completion of the acquisition of Shanghai Saizhi, FC products opened the second growth curve. In the first half of the year, the company completed the acquisition of 39.07% of the minority shareholders in Shanghai Saizhi, which became a wholly-owned subsidiary of Quanxin shares. Shanghai Saizhi is one of the early domestic enterprises involved in the field of FC optical fiber bus. It has accumulated a large number of technical research and development achievements in this field and has obvious leading advantages. With the advantages of high broadband, low delay, strong anti-interference ability, long transmission distance and strong compatibility, FC optical fiber bus technology has become the inevitable trend of the development of avionics system, and gradually popularized and applied to warship, aerospace and other fields. In the future, the company will further increase the capital investment in the field of FC optical fiber bus technology, and FC products are expected to become a new performance growth point of the company.
Profit forecast and investment rating: the company's net profit from 2022 to 2024 is expected to be 241 million yuan, 338 million yuan, 413 million yuan, EPS is 0.77 yuan, 1.08,1.32 yuan, corresponding to PE is 21 times, 15 times, 13 times, maintaining the "buy" rating.
Risk hint: the growth of military orders is not as expected; the progress of fund-raising projects is not as expected.