AVIC Optoelectronics (002179): Steady performance growth and civilian products will continue to expand the company’s growth space
Event: The company released the 2019 third quarter report: a series of reported operating income68.
920,000 yuan, an increase of 19 over the same period last year.
34%; net profit attributable to mother 8.
31 ppm, an increase of 19 in ten years.
The military and civilian products market continued to develop, with steady growth in performance.
Benefiting from the release of downstream military and civilian market demand, a series of companies reported operating income68.
9.2 billion (+19.
34%), net profit attributable to mother 8.
3.1 billion (19.
22%), with a gross profit margin of 33.
64%, an increase of 1 over the same period last year.
58pct, the company’s products in the aerospace, 5G communications and other fields continue to expand sales, operating performance has grown steadily, and profitability has improved slightly.
The prepayments for materials purchased at the end of the reporting period increased by 43 as compared to the beginning of the period.
22%, 杭州桑拿网 indicating that the company’s orders have increased significantly, and the fourth quarter results are expected to achieve rapid growth in order delivery.
Expenses were well controlled, and R & D investment increased significantly.
The expense ratio during the reporting year was approximately 17.
56%, an increase of 1 over the same period last year.
17pct, in which the sales expense rate and management expense rate are reduced by 0.
40pct and 0.
63pct. Due to the report’s increasing interest expenses on convertible debt, financial expenses increased by 2375 compared to the same period last year.
The company expanded product structure adjustment and R & D investment, and reported increased R & D expenses6.
520,000 yuan, an increase of 47 over the same period last year.
53% will help cultivate new performance growth points and improve product market competitiveness and market share.
The military product industry as a whole is solid, and vigorously expands the 5G communications and other civilian markets.
The company’s high-end connectors occupy about 40% of the domestic military product market. In the future, it will continue to benefit from the compensated growth of military product orders after the military reform and the accelerated installation of weapons and equipment at the end of the 13th Five-Year Plan.
The company has intensified its competitive advantage in the civilian product market such as communications, and is a supplier to domestic and foreign communications giants such as Huawei, ZTE, and Samsung.
The accelerated construction of 5G communications will drive demand for upstream optical devices. The company focuses on the deployment of optical active and optoelectronic equipment, high-speed backplanes and other products. It is expected to seize market share of high-end imported products in the future and further expand the company’s growth space.
Profit forecast and investment recommendations: The company’s revenue is expected to be 96-2019.
5.3 billion, net profit attributable to mothers was 11.
2.6 billion, with EPS of 1.
65 yuan, the current expected corresponding PE is 34/28/23 times, respectively, given an “overweight” rating.
Risk warning: The delivery of military products is less than expected; the growth rate of civilian product orders is less than expected