\u3000\u3 China Vanke Co.Ltd(000002) 465 Guangzhou Haige Communications Group Incorporated Company(002465) )
Event: the company released the first quarterly report of 22 years. The operating revenue was 938 million yuan (YoY + 7.50%), the net profit attributable to the parent was 52.215 million yuan (YoY + 8.10%), and the net profit not attributable to the parent was 29.174 million yuan (YoY + 183.89%). The company’s military business has strong seasonal characteristics, and the proportion of Q1 revenue and profit scale is small.
During the period from the increase of gross profit rate to the decrease of expense rate, the profitability of core business was enhanced: the growth rate of net profit attributable to the parent company slowed down, mainly due to the significant year-on-year decrease in other income and net investment income. Other income decreased by 42.88% year-on-year, mainly due to the reduction of government subsidies caused by the epidemic; Investment income decreased by 64.51% year-on-year, mainly due to the year-on-year decrease in investment income of associated enterprises and due financial management income. The company’s Q1 net profit deducted from non parent company increased by 183.89%, and the profitability of its core business was enhanced. In the context of rising prices of raw materials, the company’s gross profit margin increased by 0.4pct year-on-year, with good cost control. During the period, the expense rate decreased by 2.46 PCT, of which the sales / management / R & D / financial expense rate decreased by 1.14/1.07/0.16/0.09 PCT respectively.
Military orders continue to land, and the landing of contracts in the future is expected to promote the continuous improvement of performance: the company announced on March 18 that the order for special institutions is 430 million yuan, and the supply time is 22 years. Previously, the company’s orders for the whole year of 21 years were 1.983 billion yuan, some of which were delivered in 22 years. The comparison and bidding results of several projects of the company are among the best, and the subsequent orders are highly sustainable.
1) wireless communication field: the company’s short wave business breaks through the field of airborne mainstream platform again; The new spectrum general-purpose communication equipment passed the state identification and broke through the field of general-purpose handheld ultrashort wave for the first time; Multi type conduction integration equipment is being installed on a variety of vehicle platforms; A multi-mode intelligent terminal has been finalized and delivered in batches. In addition, software radio, ad hoc network, digital trunking and other projects have also been smoothly promoted;
2) Beidou navigation field: a variety of Beidou 3 general terminals and equipment have been effectively distributed in the special institutional market, and the bidding has been successfully shortlisted.
Build an unmanned information industry base and expand new growth points: “bee swarm (UAV), wolf Swarm (unmanned vehicle) and fish swarm (unmanned ship)” will become the development direction of the future army. Based on the advantages of communication, navigation and positioning, perception algorithm and so on, the company will further expand a full range of unmanned application platforms including reconnaissance and anti-aircraft integration, so as to realize the expansion from terminal business to combat platform. The company took the lead in the layout of unmanned systems, participated in the development of various types of ground unmanned platform equipment, ranked among the best in the comparison and measurement of special institutions, and obtained the type selection, and obtained the customer contract in the research and development and supporting of unmanned system information equipment and anti unmanned, with significant first mover advantage; In the next step, we will continue to increase investment in the research and development of unmanned equipment and further expand around relevant businesses.
Investment suggestion: in the future, the company is expected to fully benefit from the long-term sustainable development opportunities of Beidou 3 and military digital construction. We predict that the net profit of the company in 22-24 years will be 810 million yuan, 1033 million yuan and 1.252 billion yuan respectively, corresponding to 29 / 23 / 19 times of PE respectively, maintaining the “overweight” rating.
Risk tip: the progress of contract execution is slower than expected, the development of Beidou application is slower than expected, the risk of technology R & D and market competition are higher than expected, and there are uncertainties in the content and implementation of cooperation.
