Weihai Guangtai (002111) 2019 Interim Report Review: Orders are in good condition and performance can be expected
Core view The company achieved EPS 0 in the first half of 2019.
The reported revenue decreased slightly, the gross profit margin decreased slightly, and the decline 上海夜网论坛 in performance was greater than the decrease in revenue.
Taking into account the company’s expected revenue growth in the second half of the year and the performance commitment to compensate for the expansion of the scale of revenue, the company’s 2019/20/21 EPS forecast is maintained at 0.
In view of the company’s gradual landing of military orders, the prospects for the development of airport equipment and fire protection equipment business continue to improve, and maintain a “buy” rating with a target price of 16 yuan.
Benefiting from the recognition of delayed delivery of product revenue and the performance compensation of the original shareholders of the subsidiary, the company’s performance is still expected to improve.
The company achieved revenue in the first half of 20199.
6.6 billion yuan (-3 per year).
19%), net profit attributable to mother 1.
1.3 billion yuan (year-9).
91%), achieving EPS 0.
Affected by the fire protection reform and the delay in the delivery of airport equipment, the company’s revenue fluctuated slightly, the import tariffs increased, the cost of materials rose, and the gross profit margin fell.
69% to 28.
53%, the decline in performance was greater than the decline in revenue.
Considering that the company has completed production of 2 million U.S. dollars of products, can recognize revenue in the second half of the year, and that the performance of the original shareholders of Quanhua Times promised to compensate or bring about no less than 3602 million non-operating income, the company’s performance is still expected to improve.
Domestic and foreign two-wheel drive, the airport equipment business has great potential for development.
Reported company airport ground equipment realized revenue4.
4.9 billion, down 5 every year.
35%, gross margin 33.
16%, a decline of 5 per year.
The company’s domestic market share of some leading airport equipment products reaches 40% -60%, and it is the world’s most complete supplier of airport ground equipment.
In the first half of 2019, the total turnover of the national civil aviation industry increased by 7 per year.
4%, passenger traffic is increasing by 8 per year.
5%, expansion of the airport ground equipment market.
In the first half of the year, domestic market companies had contracts with three major airlines and three airports.
200 million US dollars, international market companies have successively opened up new markets such as Japan, Ethiopia, Morocco and Vietnam, with domestic and foreign two-wheel drive, the prospect of airport equipment business is promising.
The impact of the fire protection reform may continue, and domestic substitution may be a new focus.
On April 23, the new “Fire Protection Law” was passed, and the fire protection reform was initially deepened.
Affected by this, the company’s fire protection industry (fire trucks and equipment and fire alarm equipment) realized revenue4.
20,000 yuan, 20 years average.
86%, gross margin blood pressure 5.
49% to 25.
39%.On July 29, the State Council Office held a press conference on “Opinions on Deepening the Reform of Fire-fighting Law Enforcement”.
As of 2017, the company’s annual Oshkosh Group emergency rescue fire trucks served 62 major airports in China.
Foreign Ministry spokesman Geng Shuang said in a question on July 12 that China would impose sanctions on US companies involved in arms sales to Taiwan.
Oshkosh Corporation may be included in the list of unreliable entities in the future due to the problem of exporting weapons to Taiwan, China, and the company’s domestic alternatives for fire truck products will penetrate.
With the signing of multiple orders, the prospects for the military products business are improving.
The report states that the company’s revenue from the military is 1,446 million every 80 years.
In the field of drones, the company has strengthened the construction of flight teams. It has built three flight teams capable of independently supporting missions. It has successfully developed two new military drones and has successfully conducted field tests.
On July 18, the company signed a military fire truck procurement contract with a certain military department, with two total scales2.
8.4 billion, of which 2694 million products were delivered within the year.
On July 19, the company signed a procurement contract for a certain type of unmanned aerial vehicle and supporting equipment with a certain military department, with a scale of 22.87 million yuan. The company’s drone throughput will continue to increase, and it will expand into the military trade field in the future.Rapid expansion.
Risk factors: The impact of other transportation methods on the civil aviation industry, market competition intensifies, business expansion progress is not up to expectations, and the volume of military products is less than expected.
Investment advice: Considering the company’s revenue recognition growth in the second half 天津夜网 of the year, and the performance commitment to compensate for the breakthrough in revenue scale, maintain the company’s EPS forecast for 2019/20/21 to zero.
The current price is 12.
98 yuan, corresponding to 17/13/11 times PE for 2019/20/21.
Considering the rapid development of the company’s military industry, the airport equipment business and the fire protection equipment business have a better outlook. We maintain a “Buy” rating with a target price of 16 yuan (corresponding to 20 times PE in 2019).