AVIC Optoelectronics (002179): Rapid growth in revenue and profits, market continues to develop and has broad prospects
Investment highlights: Event: On August 24, 2019, the company released its 2019 semi-annual report, which achieved revenue of 45.
97 ppm, an increase of 28 in ten years.
23%, realizing net profit attributable to mother 5.
73 ppm, an increase of 23 in ten years.
13%, realizing non-net profit attributable to mothers5.
60 ppm, an increase of 22 in ten years.
Opinion: Revenue and profits are growing rapidly, and R & D is highlighted.
In terms of 南京桑拿网 gross profit, the company achieved revenue of 45 in the first half of 2019.
9.7 billion (28.
23%); gross margin is 33.
25% (reduced by 0 every year last year.
47pct), achieving a gross profit of 15.
2.8 billion (YoY26.
In terms of expenses, the company’s expenses during the first half of 201917.
23%, an increase of 0 every year.
68pct, of which the sales expense rate drops by 0 every year.
17pct, the management expense rate (including research and development) increases by 0 every year.
55pct (increasing investment in enterprise R & D projects has resulted in an increase in R & D investment by 54 compared to the same period last year).
43%), the financial expense rate increases by 0 every year.
30pct (mainly due to the addition of convertible bonds interest over the same period last year).
Due to the rapid increase in expenses during the period, the final company’s profit growth rate is lower than the revenue growth rate: the total profit realized6.
7.2 billion (22.
65%), net profit 6.
1.8 billion (YoY26.
12%), net profit attributable to mother 5.
7.3 billion (YoY23.
Rapid growth has been achieved both at home and abroad.
In terms of products, the company’s electrical connectors and integrated components in the first half of 2019 achieved revenue of 35.
0.94 million yuan (year-on-year)
79%), the gross profit margin decreased by 0.
12pct; revenue from optical devices and optoelectronic equipment8.
190,000 yuan (year-on-year).
94%), the gross profit margin decreased by 3.
41pct; fluids, dental and other products realized revenue1.
8.5 billion (YOY53.
By region, mainland China achieved income 41.
9.5 billion (28.
56%), the gross profit margin was relatively reduced by 0.
25 square feet; Hong Kong, Macao and Taiwan and other countries and regions achieve income4.
02 billion (YOY24.
The market is constantly expanding and the prospects are broad.
In the field of communications, the company focuses on high-end products such as high-speed connectors, optical interconnect backplanes, etc., and follows the development of next-generation communication technologies such as 5G, data centers, and cloud computing. It has carried out multiple product research and development projects around customer key projects and made progress.
In the field of new energy vehicles, the company successfully cooperated with foreign car companies on the basis of consolidating the market of its own independent brand car companies around high-voltage and high-current connector products.
With reference to the historical compound growth rate of each business of the company, we expect the company’s EPS for 2019-2021 to be 1, respectively.
87 yuan, combined with the 深圳桑拿网 average PE of a comparable company in 2019, gives the company a 35-45 times division interval in 2019, corresponding to a reasonable value interval 41.
55 yuan / share, given “preliminary market” rating.
(1) Demand uncertainty; (2) Intensified market competition.