AVIC Optics (002179) 2018 Annual Report Comment: Revenue Return to Rapid Growth Channel

The company released its 2018 annual report: revenue 78.

16 ppm, an increase of 22 in ten years.

86%; net profit attributable to mother 9.

5.4 billion, an annual increase of 15.

56%; net profit after deduction to mother 8.

85 ppm, an increase of 14 in ten years.

48%; estimated average return on net assets is 17.

81%, slightly below 0.

6 points.

Revenue has returned to the rapid growth channel. The slender gross profit of cable components and integrated products and the large increase in research and development costs have led the company’s profit growth to be slower than revenue.

The gross profit margin of cable components and integrated products gradually shifted. Although there was a significant shift in 2018, it was still comparable to the company’s overall gross profit margin.

Expanding the advantages of cable components and integrated products The company provides customers with overall solutions, achieves double enhancement of supporting levels and supporting values, and improves customer stickiness.

Continuous R & D helps improve the company’s expanding product categories, upgrade supporting levels, expand business areas, and accumulate strength for long-term development.

The military-to-civilian and military-civilian business layout has resulted in the company not only sharing the long-term growth dividends of the military industry, but also expected to continue to make efforts in the civilian product advantage industry.

The domestic connector industry’s market size of more than 100 billion yuan and the growth rate of more than 10% of the industry have provided excess space for the company’s development.杭州桑拿网

In the two years after the 13th Five-Year Plan, the demand for equipment procurement continued to accelerate for the growth of military products and infrastructure; the demand for 5G construction and new energy vehicles and other civilian product industries was strong, and international business continued to expand, with ample room for growth in civilian products.

Earnings forecasts and investment advice.

In the next few years, the company will make great efforts to develop military and civilian products with huge growth potential.

We adjusted our profit forecast for the company based on the 2018 annual report and expect the company’s net profit for 2019-202111.

17, 13.

40, 15.

42 trillion, corresponding to the closing price of March 20th, the PE is 31/26/23 times, after considering the full conversion of convertible 无锡桑拿网 bonds, the corresponding PE is 32/27/23 times, maintaining the “prudent increase” rating.

Risk warning: the progress of revenue recognition exceeds expectations; intensified market competition, gross profit substitution, etc.