July 12 (603712): Military and civilian double arrows from Northeast of Baima

July 12 (603712): Military and civilian double arrows from Northeast of Baima

Report summary: The company released an annual report performance forecast, exceeding market expectations.

Net profit attributable to mothers in 2019 is 3.

35?
3.

80 ppm, a 49% increase in one year?
69%; net profit after deduction is 3.

05?
3.

500,000 yuan, an increase of 103% every year?
133%.

The company’s product business covers military private network communications and civil private network communications. It has a high degree of entry into the biology and a stable competitive landscape.

Current income composition is about 7?
8 becomes a military product, 2?
3 becomes a civilian product.

With the company’s IPO and overall advancement in business, it will become a leader in private network communications with both the military and civilians.

The factors that exceeded the expected performance in 2019 were: the landing of development and R & D results promoted the improvement of orders and sales performance.

R & D expenditure has increased year by year and is 100% expensed. R & D expenditure / operating income has remained at about 24%, which is much higher than peers.

Keeping pace with customer needs, more than 300 pre-researched projects have achieved breakthroughs in multiple new products. R & D projects have gradually landed into sales performance, and product orders have increased significantly.

Accounts received in advance for the first three quarters7.

5.2 billion, 南京桑拿网 an increase of 17 from the initial ranking.

63%, an increase of 55 compared with the same period last year.

86%.

Inventory 24.

48 ppm, an increase of 29 from the initial ranking.

17%, an increase of 44 compared with the same period last year.

84%.

The increase in the proportion of high-margin product delivery promoted the increase in comprehensive gross profit margin.

The increase in revenue in 2019 and the decrease in the increase in revenue of products with higher gross profit will shift the overall gross profit rate. It is judged that the proportion of system-level products in the product structure has increased.

The first three quarters of comprehensive gross profit margin of 45.

31%, about 44 in the first half.

12% of the current increase, the fourth quarter of the delivery season, the positive role 成都桑拿网 strengthened.

Mainly benefited from the stable product industry structure and the increase in the number of competitors. Affected by comprehensive factors such as high-tech barriers, qualification certification, product trials, and historical accumulation, the barriers to new entrants are extremely high.

Increasing efforts to control expenses will increase corporate efficiency.

Intensify the cost control, effectively control the expenditure, reduce the cost ratio, and significantly improve operating efficiency.

Customer structure factors will lead to a decline in revenue growth due to the adjustment of the sales expense ratio; reasonable control of management expenses, and the slow growth of management expenses in the past few years.

Earnings forecast: Improve earnings forecast, expected 2019?
Net profit in 2021 is 3.

60, 5.
40, 8.

13 trillion, 53% composite strength.

EPS is 0.

47, 0.

70, 1.

05 yuan, corresponding to 1.

The closing price of PE on the 14th was 55.
27, 36.

81, 24.

44 times, maintain “Buy” rating, give 50 times PE in 2020, raise the target price to 35 yuan, corresponding to 27 billion market value, 36% growth space.

Risk warning: systemic risk, order delivery is less than expected.