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Leader Optoelectronics (002189): High growth in military products drives performance and is expected to continue to benefit from national defense informatization

Leader Optoelectronics (002189): High growth in military products drives performance and is expected to continue to benefit from national defense informatization

Events: 1. The company released its 2018 annual report, which effectively achieved operating income of 25.

84 ppm, an increase of 55 per year (adjusted).

34%; net profit attributable to mothers1.

62 ppm, a year-on-year (adjusted) increase of 237.

74%; net profit attributable to non-parents is 4156.

530,000 yuan, an annual increase (after adjustment) of 8.

96%; basic profit return is 0.

68 yuan.

The company plans to distribute a cash dividend of 0 for every 10 shares.

63 yuan (including tax).

2. Release the first quarter report of 2019 and realize operating income5.

40 ppm, an increase of 23 per year (adjusted).

38%; net profit attributable to mother 2257.

460,000 yuan, an increase of 198 a year (adjusted).

99%; net profit attributable to non-parents is 2249.

300,000 yuan, an increase of 197 per year (after adjustment).


Comments: 1. The high growth of the military products business drove a substantial increase in performance.

The company’s three main businesses are optoelectronic defense and surveillance, optical components and projectors.

Among them, the optoelectronic defense and monitoring of major areas are mainly military products, and achieved operating income in 2018 (9.

710,000 yuan, +143.

11%), gross margin (31.

82%, +1.

20%), accounting for 37% of the total revenue and gross profit of listed companies.

57% and 57.

20%, compared with approximately 20% and 34% of the pro forma revenue in 2017, which have increased significantly in series, which is the most important driving force for rapid growth in performance.

In terms of civilian products, optical components maintained steady growth and realized revenue (9.

120,000 yuan, + 6.

30%), gross margin (18.

67%, +1.

81%); revenue from projector business (5.

9.7 billion, +182.

05%), gross profit margin 3.

78%, but due to lower gross profit margin, limited high contribution to performance.

In addition, the company’s period expense ratio is 13.

36%, down by 1 every year.

86%, mainly due to exchange gains of 9.49 million yuan for the current year, and (-14.46 million yuan) for the same period last year, resulting in a significant decrease in financial expenses94.

62%, which helped the company’s performance to a certain extent. 2. The optical performance of the military products business body exceeded expectations and is expected to continue to exert its strength.

The joint company has completed the acquisition of 100% equity of Sino Optics, a large optoelectronic military industrial company affiliated to the Armor Group. At present, Sino Optics is the main body responsible for the company’s military production tasks. Its main military products are military optoelectronic defense and monitoring of major areas.Light weapon sights, stability control optoelectronic systems and detection and jamming systems, some of which are equipped exclusively for the military, are also the only domestic military units designated by the National Border Defense Commission to be shortlisted for both land defense and coastal defense monitoring.

China Optics’ parent company’s performance commitment for 2018-2020 is 3,388.

0.94 million yuan, 3,701.

30,000 yuan, 3,992.

370,000 yuan in 2018, China Optics achieved revenue (16.

710,000 yuan, + 108%), net profit (9045.

60,000 yuan, + 299%), China Optics’ parent company deducts non-net profit1.

07 trillion, in fact, the above-mentioned performance commitment indicators were exceeded.

The goal of a strong national army requires ensuring that significant progress is made in informatization construction by 2020, gradually transforming the continued growth of military expenditures, and the continuous advancement of informatization construction in the army. It is expected that the company will continue 杭州桑拿 to benefit from the resettlement.

And the company has completed budget 3.

51 million supporting financing projects (issue price 15).

35 yuan / share, an increase of 22.84 million shares), a total of 3 after replacing the agency fee.

The US $ 3.6 billion China Optics Capacity Building Project is expected to further enhance military capabilities.

In addition, judging from the quarterly report, the main reason is that military and civilian products are growing rapidly each year, and we are optimistic that the company’s military products business will continue to grow rapidly.

3. The impact of non-recurring items on net profit is limited, and a large amount of asset impairment is provided for light loading.

There is a certain gap between the short-term company’s net profit attributable to mothers and 天津夜网 non-attributable net profits, mainly due to the net profit of 63 million yuan before the merger of Sino Optics was included in non-recurring gains and losses; the investment income reached 63.08 million yuan, mainly due to 1) disposalPart of the equity income of Bingzhuang Finance Company was 2586 million. 2) The shareholding ratio of Pingbang Optoelectronics, which was a 55% subsidiary, was increased to 24.

At 6%, the remaining equity was remeasured to generate gains and equity method long-term equity investment income totaling 33.73 million yuan.

However, because the company accrued asset impairment losses of 73.4 million yuan, which substantially offset the investment income, the investment income did not actually affect the net profit attributable to the mother.

In addition, the asset impairment losses mainly consisted of an inventory depreciation reserve of RMB 47.06 million and a bad debt reserve of accounts receivable of RMB 27.09 million. A large amount of withdrawal also reduced the burden on the company’s gradual development.

4. There is still room for capital operation, and equity incentives stimulate internal vitality.

The armored group still has the assets of the photovoltaic sector in vitro, and the company still has room for capital operation.

In addition, the company has completed the equity incentive plan to 5.

65 yuan / share was granted to 196 shares of the company’s executives, core marketing, technical and management backbones and other 103 people.

330,000 shares, accounting for 0 of the total share capital.

83% is conducive to motivating employees and internal vitality of the company.

5. Profit forecast It is estimated that the company’s net profit attributable to the mother for 2019-2021 will be 1.

7.3 billion, 2.

06 ppm and 2.

470,000 yuan, the corresponding EPS is 0.

66 yuan, 0.

79 yuan and 0.

95 yuan, maintain “strongly recommended -A” rating.

Risk Warning: The product development progress is less than expected; competition in the civilian product market is intensifying.