Haige Communications (002465): Steady growth in performance optimistic about the development prospects of military communications and Beidou products

Core point of view: The company’s overall performance has grown steadily, and non-core assets have continued to grow. Focusing on the development of the main business, the company released the semi-annual report for the year 19 on August 15 and achieved revenue 19 in 19H1.

7.6 billion (+8.

14%), to achieve net profit attributable to mother 2.

2.3 billion (+18.

98%), the company’s overall performance achieved steady growth.

The company completed the transfer of 51% equity of Beijing Erda, a holding subsidiary, to further optimize asset allocation, focus on core business, and improve return on assets.

The wireless communications business continued to recover, and the software and information services business grew steadily. In terms of business, the company ‘s traditional military wireless communications business continued its growth growth trend over the past 18 years, surpassing growth in 19H1 by 12.

58%, gross profit margin increased by 4 in the short term.

84pct; The software and information services business of its subsidiary Haige Yichuang has grown steadily, and its revenue has been extended by 6%.

33%, affected by the price cuts of telecom operators, the gross profit margin has decreased year by year3.

62pct; Beidou navigation business is in the transition period from “BeiDou 2” to “BeiDou 3”, and the revenue is basically flat, and the gross profit rate drops by 1.

55 points; aerospace is in the market development period, and revenues increase by 7 per year.

4%, gross profit margin increased by 3.

4pct.

The improvement of period expenses has driven the company’s net interest rate. As for the period expenses, the company has maintained resistance to R & D investment for a long time, and the R & D expenses of 2019H1 will increase and increase by 5.

26%; by selling non-core assets, the company reduced the first level, improved management efficiency and reduced other period expenses, sales expenses, management expenses, 北京会所体验网 and financial expenses respectively changed by +0.

18pct, -14pct, -163pct.

The company’s overall gross profit margin improved due to the impact of the software and information services business. Benefiting from the decrease in expenses during the period, the overall net profit margin increased and gradually increased1.

75 points.

Investment advice and profit forecast are expected to return to net profit attributable to the mother in 19-21 is 5.
.

64/7.

59/9.

73 trillion, corresponding to 38/28/22 times the current sustainable PE.

The average evaluation of a comparable A-share company in 2019 is 53xPE. Considering the competitiveness of the company’s wireless communication products, Beidou navigation products have better growth and market space penetration. The growth of civilian products such as software 苏州夜网论坛 and information services is stable.Management efficiency continues to improve, and we believe that the company can be given 45xPE in 2019, corresponding to a reasonable value10.

8 yuan / share, covering for the first time, giving the company a “Buy” rating.

Risks suggest that the company’s military order is in conflict with the delivery of products affected by downstream customers; the application rhythm of the “BeiDou III” product in the military and civilian markets is uncertain; the price cuts of telecom operators will affect the profitability of software and information services.