Wuhan Guide Infrared Co.Ltd(002414) (002414)
Event: the company announced on December 2 that the company recently received the letter of notification of winning the bid for a certain type of bidding project and won the bid for the core supporting products of a complete weapon system with the excellent result of the first score.
It has won the first place in the core supporting products of complete weapon system and outstanding infrared technical strength. According to the requirements of detailed rules for competitive bidding and selection of a certain type of project, through the comparison and measurement of the development scheme, technical index satisfaction and scientific research and production capacity of this type of product, the company wins with the excellent result of scoring the first. The model product winning this bid is the core supporting product of a complete equipment system. The company has outstanding technical capabilities in the field of infrared core devices, especially refrigeration infrared detectors 1280×[email protected] μ M medium wave 1280×1024@10 μ M long wave and other million pixel refrigeration infrared detector prototypes have been developed, and the full band million pixel specification layout of refrigeration infrared detector has been realized. At the same time, in the cutting-edge category II superlattice detector field, the company has quite excellent technical strength. The company has developed China’s first 1280 based on antimonide category II superlattice × 1024、15 μ The medium wave two-color focal plane detector with a pixel spacing of M fills the gap in China, and the overall level has reached the international advanced level. The key index NETD is less than 20mk in both bands, and the pixel of the two-color detector is 1280 × 1024, reaching the international leading level. According to the batch production characteristics of model products, the key model products are expected to significantly increase the company’s performance in the next year.
There is a strong demand for infrared guided missiles. Precision guided weapons represented by missiles have developed rapidly in recent years. With the maturity of infrared focal plane imaging technology, the application of infrared guidance mode is gradually popularized. Infrared guidance has many excellent properties, such as wide field of view, anti stealth, passive system, strong anti-interference ability and all-weather operation. It is widely used in various types of missile weapons, such as air-to-air, ground to air, air to ground, anti-ship, anti tank and so on. According to the budget of the US Department of defense over the years, missiles and ammunition accounted for more than 2.7% of the US defense budget in recent four fiscal years, of which missile procurement accounted for 77.34% in fiscal 2022. As the main weapon of information warfare, missile training consumption and combat readiness inventory will continue to increase the demand for infrared seeker and its core device infrared detector. In terms of product export, the company has completed the JM export project approval of several types of system products, formed a strategic cooperative relationship with companies with relevant export rights, and achieved batch order for the overall export of complete equipment system.
The layout of the whole industry chain from infrared core devices to complete equipment system. Based on the research and production of infrared core devices, the company has gradually expanded to the downstream, and has built an overall scientific research and production layout of the whole industry chain from the bottom infrared core devices, to the comprehensive photoelectric system, and then to the top-level complete equipment system. At present, the company has the development and batch production capacity of complete equipment system, has the production qualification of initiating explosive devices, and has high competitive barriers among similar private enterprises.
Infrared technology has a broad market space for both military and civil use. The company’s infrared products are also widely used in intelligent driving, industrial temperature measurement, power inspection, smart home and other fields. Based on solid infrared technology, the company continues to explore the civil market. The third quarterly report disclosed that Xuanyuan Zhijia, a subsidiary, has reached a cooperation with a mainstream large vehicle enterprise in China and has become the exclusive supplier of the front mounted infrared project of a new electric passenger vehicle. Infrared technology is used for both military and civil purposes, and the company has huge long-term growth space.
Investment suggestion: we estimate that the company’s revenue from 2021 to 2023 will be RMB 4 billion, RMB 5.2 billion and RMB 6.76 billion respectively, with gross profit margin of 57%, 57% and 57% respectively. The net profit attributable to the parent company will be RMB 1.308 billion, RMB 1.699 billion and RMB 2.206 billion respectively, with corresponding EPS of RMB 0.56, RMB 0.72 and RMB 0.94 respectively, and corresponding PE of 41.45x, 31.90x and 24.57x respectively. The company has excellent infrared technology and high qualification barriers for equipment scientific research and production, and maintains the “buy” rating.
Risk prompt event: the military product order is less than expected; Product delivery is not as expected; The profit forecast was lower than expected.
