\u3000\u3 Guocheng Mining Co.Ltd(000688) 682 Shanghai Hollywave Electronic System Co.Ltd(688682) )
Event:
The company issued the announcement of 2021 annual performance express after the closing on February 25, 2022.
Comments:
The company’s market development, implementation and delivery were smooth, and the annual operating revenue increased by 43.78% year-on-year. In 2021, under the background of the continuous improvement of the scene in the downstream city, the company continued to explore the market, steadily implemented and delivered with the technical advantages in the field of electromagnetic simulation and measurement, and completed the acquisition of 51% equity of Xi’an Hongjie Electronic Technology Co., Ltd, The annual operating revenue and operating profit achieved rapid growth. In 2021, the company achieved an operating revenue of 330 million yuan, a year-on-year increase of 43.78%; The net profit attributable to the parent company was 606491 million yuan, a year-on-year increase of 35.30%; The net profit deducted from non parent company was 513034 million yuan, with a year-on-year increase of 23.10%. Under the background of increasing R & D investment and launching the equity incentive plan, the company still achieved a steady growth in the net profit attributable to the parent company.
The phased array radar market is booming, and the three-dimensional electromagnetic simulation software opens up a new space
With the support of relevant policies, China’s phased array radar market and technology have gradually developed and occupied an important position in the global phased array radar industry. According to the company’s prospectus, the radar market scale of China’s national defense technology industry will reach 57.3 billion yuan in 2025. The company officially released the three-dimensional electromagnetic simulation software rdsim1 at the national antenna annual conference in 2021 Version 0, the electromagnetic simulation software product series has been further improved. Using the improved method of moments and its fast algorithm, the product can realize the simulation analysis of electromagnetic field problems with arbitrary three-dimensional structure. The application fields include antenna / antenna array, microwave devices and radar scattering, which can significantly improve the design efficiency and reduce the R & D cost.
Complete the acquisition of 51% equity of Hongjie electronics and further extend the product line of electronic measurement system
In October 2021, the company announced that it planned to use its own funds or self raised funds of 75.48 million yuan to acquire a total of 51% equity of Xi’an Hongjie Electronic Technology Co., Ltd. The RF characteristic measurement system business of Hongjie electronics and the radiation and scattering characteristic measurement business of the company belong to the field of electronic measurement, which are highly correlated and complementary in terms of technology, products and downstream customers. After the completion of this transaction, the company’s product line in the field of electronic measurement systems will be further expanded, and various microwave and millimeter wave device / component measurement systems, vacuum micro discharge measurement systems, passive intermodulation measurement systems, microwave high-power component measurement systems and other products will be added, which will help the company further tap customer demand and improve market share. In addition, Hongjie electronics has accumulated rich project experience in the field of satellite load RF characteristics and micro discharge measurement, and has formed a leading technology advantage in the industry, which will help the company develop complementary businesses such as LEO satellite borne phased array antenna and whole satellite measurement system.
Profit forecast and investment suggestions
The continuous promotion of national defense informatization construction has brought new development opportunities to relevant electronic information companies, and the company is expected to fully benefit. Referring to the announcement of 2021 annual performance express, the company’s operating revenue forecast from 2021 to 2023 is adjusted to RMB 330, 435 and 571 million, the net profit attributable to the parent company is adjusted to RMB 61, 85 and 115 million, and the EPS is RMB 164, 2.31 and 3.11/share, corresponding to 84.79, 60.30 and 44.67 times of PE. Since its listing, the company’s PE has mainly operated between 60-150 times. Considering the growth space of the track where the company is located, the company has been given 80 times of the target PE in 2022, with the corresponding target price of 184.80 yuan. Maintain the “buy” rating.
Risk tips
Covid-19 recurrent pneumonia; Technology upgrade iteration risk; Brain drain risk; Risk of industrial policy change; Overseas procurement may be affected by export control and trade friction; Market competition intensifies.
