July 12 (603712): Performance growth exceeds market expectations The leading indicators still maintain a high level of prosperity
On October 26th, the company released the third quarter report of 2019 and achieved operating income11.
5.2 billion, an annual increase of 21.
18%, realized net profit attributable to mother 1.
12 ppm, an increase of 45 in ten years.
Operating income maintained rapid growth, leading indicators remained highly prosperous. Three quarterly results were expected to increase, and the leading indicators remained highly prosperous.
The company released the third quarter report of 2019 and achieved operating income11.
52 ppm, an increase of 21 in ten years.
18%, realized net profit attributable to mother 1.
12 ppm, an increase of 45 in ten years.
As of the end of the third quarter of 2019, the company’s total inventory was 24.
48 ppm, compared with 16 last year.
900,000 yuan, an increase of 44 in ten years.
84%, compared with 23 at the end of the second quarter of 2019.
The 1.2 billion inventories framework was basically flat; the total accounts receivable at the end of the period14.
44 trillion, an increase of 2 from the end of last quarter.
20 ppm, an increase of 31 over the same period last year.
06%; the total budget received at the end of the period is 7.
5.2 billion, compared with 7 at the end of the second quarter.
The level of 7.2 billion was basically flat, and the company’s orders on hand remained at a high level.
In our opinion, the company ‘s orders for private network communication terminal products are in good condition this year, and its operating income has maintained rapid growth with product delivery. At the same time, the company’s inventory level has continued to increase, indicating that the production of stocks is progressing smoothly.Early strong.
The proportion of period expenses decreased, the operating efficiency increased significantly, the gross profit margin changed slightly, but the net interest rate increased, and the period expenses decreased compared with the same period of last year.
The company’s gross profit margin for the first three quarters of 2019 was 45.
28%, a decrease of 2 over the same period last year.
45 averages with a net sales margin level of 9.
74%, an increase of 1 over the same period last year.
Period expenses total 4.
11 trillion, with revenue accounting for 35.
71%, a decrease of 2 from the same period last year.
Among them, the selling expenses are zero.
40,000 yuan, an increase of 18 in ten years.
16%; management costs are 0.
7.4 billion, down 2 every year.
16%; R & D expenses are 2.
82 ppm, an increase of 20 in ten years.18%, accounting for 24% of operating income.
52%, still maintained steady growth; financial expenses were zero.
1.4 billion, down 30 a year.
81%, mainly due to the decrease in bank borrowings, leading to a decrease in revenue.
Deepening the reform and going further, the group plans to start the hybrid reform. Central Group is a holding group company involved in the information technology, intelligent manufacturing, electronic parts and other industries.Transfer mechanism to increase vitality.
In order to implement the Prime Minister’s Tianjin Municipal Committee and Government’s decision to deepen the reform of state-owned enterprises and accelerate the establishment of a modern enterprise system, Central Group plans to implement a mixed ownership reform.
We believe that as the holding subsidiary of Central Group, the Group plans to start the mixed reforms and will gradually promote the progressive company-level mixed reforms. The fully flexible market-oriented operation mechanism will enhance the company’s operating efficiency.
Pioneer in the reform of Beijing-Tianjin-Hebei state-owned enterprises, the platform partially highlights the company’s listing on the Shanghai Stock Exchange in February 2018. The controlling shareholder is Tianjin Zhonghuan Electronics Group, with a shareholding ratio of 52.
53%, the second largest shareholder is TCL Group, with a shareholding ratio of 19.
In 2015, TCL became the shareholder of the company by signing the “Equity Transfer Agreement” with Tongguang Group’s labor union, and the company took the lead in completing the mixed reform of state-owned enterprises.
In January 2019, in order to implement the requirements of merging Tianjin Municipal Party Committee and Municipal Government on optimizing the overall capital layout structure, Tianjin State-owned Assets Supervision and Administration Commission allocated 51% of Tianjin Zhonghuan Electronics Group to Jinzhi Capital to support Tianjin state-owned enterprises industrial structure adjustment and reformdevelopment of.
After the completion of this matter, Jinzhi Capital will become the controlling shareholder of Central Group and indirectly hold 712 Company52.
As a part of the market-oriented state-owned capital investment and operation platform and a strong promotion of the group’s strategic plan, Jinzhi Capital is an important player in mashups. It is a state-owned capital operation work platform for advanced manufacturing research and development.The triple function of the booster is becoming more prominent as a part of the platform for listed companies in Tianjin’s mixed reform.
It is a core supplier of wireless communication terminals and system-level products for proprietary networks, with national-level technology centers and national-level industrial design centers.
In the military field, the company is the main contracting unit of the national military ultra-short-wave wireless communication equipment, and its products cover the entire military. In the civilian field, the company is the main formulation unit of the national railway wireless communication industry standard, leading the industry.
Absolutely, the company’s business scope has gradually expanded from traditional private network wireless communication terminal products to system products.
Huawei’s military industry improves investment in research and development, guarantees companies in the military sector to improve their investment in research and development, and maintains a level of 20% or more in research and development. It ranks among the top listed companies in the military industry.
In 2018, the company’s R & D expenses accounted for 24 of operating income.
74%. The R & D expense ratio in 2017 was 23.
95%, high R & D investment provides continuous driving force for the company’s technological leadership and innovation.
As of the end of 2018, the company and its subsidiaries had a total of 83 invention patents, 152 utility model patents, and 107 design patents.
At present, the company has merged more than 300 projects for research and development, mainly including the expansion of aviation wireless communications, new CNI systems, satellite communication navigation terminals, and wide and narrow band dispatchable systems.
As a development unit of the first-generation first-generation military ultra-short-wave wireless communication equipment and the first-generation aviation anti-jamming communication equipment, the company’s multi-type products are in a leading position in the military field, and at the same time, it actively promotes new product development projects.
The company participates in the military’s procurement bidding in accordance with the military procurement process. The entire process includes pre-research, model research, mass production, etc. The pre-research qualification is the first step of expected research funding, and research funding is the expected order conditions.
Based on communicating with the military about the demand for related products, the research and development of related products is a reflection of the potential needs of the military, and the transformation of research and development projects will gradually open the market for related products.
We believe that under the background of the accelerated construction of national defense informatization, the company, as a development unit of established military communications equipment, actively carries out pre-research work and model project development that integrate key military communications technologies, and continues to maintain its strengths in this area. Product demand willFurther increases are guaranteed.
Civilian products originate from railway communications, and horizontal expansion based on advantageous fields Civil private network communications originate from railway fields and actively expand to various application scenarios.
As the main formulator of domestic railway wireless communication industry standards, the company has developed and produced the first-generation railway wireless train radio stations. The main products include wireless train tuning equipment, CIR locomotive integrated wireless communication equipment, and train protection alarm equipment.
In the field of rail transit system integration, the company continues to increase the market development of rail transit system integration solutions. The main product is the TETRA urban rail digital conversion communication system, which successfully won the bid for multiple lines in multiple cities. More and more companies in this fieldIndustry Democrats.
At the same time, the company has expanded its business scope to special wireless wireless communication areas such as maritime and police based on its advantageous areas. Its main products include AIS automatic ship identification system and PDT police communication equipment.
The environmental protection department of the company is mainly responsible for the development, production and sales of online monitoring equipment for the atmospheric environment. Through early technology accumulation and market expansion, it is gradually forming a brand effect in the field of environmental monitoring and environmental protection, which has laid a good foundation for the 佛山桑拿网 subsequent industrial layout.
Earnings forecast and investment rating: Leading military private network communications company, actively expanding research and development, maintaining a buy rating company as a traditional core development unit in the internal private network communications field, having a leading position in military ultra-short-wave wireless communications and railway wireless communications.In-depth research and development, and actively carry out pre-research work and project model development, at the same time, the company must overcome long-term technology accumulation and strengths in the military and railway wireless communication fields, and make leaps and bounds development in the business field. The future growth space is broad.
We are highly optimistic about the company’s future prospects, and conservatively estimate that the company’s net profit attributable to mothers from 2019 to 2021 will be 3 respectively.
63 and 6.
85 ppm, with annual growth of 38.
10% and 47.91%, the corresponding 19 to 21 years EPS are 0.
60 and 0.
88 yuan, corresponding to the current expected PE is 56, 37, 25 times, maintain BUY rating.