Xinguang Optoelectronics (688011): One of AVIC’s Technology Innovation Board Investment Manuals: Accumulation of Eyes for Precision Guided Weapons Helps Takeoff

Xinguang Optoelectronics (688011): One of AVIC’s Technology Innovation Board Investment Manuals: Accumulation of Eyes for Precision Guided Weapons Helps Takeoff

Event: On June 25, 2019, Shin Kong Optoelectronics was approved to be listed on the Science and Technology Edition. The company intends to apply online on July 10, 2019.

The company’s main business is optical target and scene simulation, optical guidance system, photoelectric testing equipment and laser countermeasure system, mainly serving military high-end equipment such as precision guidance weapons.

  Key points of investment The company has deep technical hard power and its business products are located at a higher position in the missile industry value chain. The company was established in 2007. With the cooperation of the chairman Kang Weimin’s core technical team, it has a number of leading business-related cutting-edge technologies.The first prize 深圳桑拿网 for national defense science and technology progress.

The company’s R & D and batch production capabilities of many varieties and serialized advanced military products have provided large-scale batch products for a number of key models of missiles, and have been highly recognized by customers of the Central Enterprise Military Industry Group, such as Aerospace Science and Industry Group and Aerospace Science and Technology Group.

  The company’s products are mainly based on the photoelectric guidance system in the missile industry chain. Its cost accounts for about 15% to 45% of the total missile cost, and it is gradually increased through the missile performance and accuracy requirements. The value-added technology and gross profit margin of the company are higher, so the company’s business productsIt is in the higher position of the missile industry value chain.

With the steady growth of the current global missile market demand, the company has a bright future.

  Unfavorable factors such as the adjustment of customer subscription plans affect the recession. The company’s performance growth prospects can be expected in the past three years. The company has achieved steady growth in operating income and net profit after deduction.

  Affected by adverse factors such as adjustments to military customer ordering plans, fluctuations in military product replenishment prices, long R & D cycles, and an increase in the proportion of R & D product sales with resetting gross profit margins, the company’s main operating income is from optical guidance systems and photoelectric testing equipment products.And the decrease in gross profit margin, the long boots led to the company’s overall operating income growth accelerated, the overall gross profit rate decline.

However, with the increase in the predetermined number of missile models corresponding to the company’s related products, the company’s optical guidance system and photoelectric testing equipment will also enter the mass production stage. It is expected that the company’s gross profit margin above the business will increase, and its revenue will recover quickly.increase.

  At the same time, the company’s products in optical target and scene simulation systems can provide necessary simulation and testing methods for missile weapon systems. There is no similar product replacement in the short term, which is an important guarantee for the company’s current operating income to grow steadily.

With the gradual transformation of the company’s technological achievements in the field of laser countermeasures, the company’s combination of its own R & D advantages in the field of optoelectronics and the development of market demand in the civilian product market will trigger related businesses to form new revenue growth for the company.The operating income is 2.

6 billion, 3.

$ 4.4 billion and 4.

8.4 billion, with a net profit of 0.

7.4 billion.

9.7 billion and 1.

34 trillion, EPS is 0.

74 yuan, 0.

97 yuan and 1.

34 yuan, with reference to listed companies in the same industry, Gaode Infrared, Dali Technology and Jiuyang, we give the company a PE range of 40-60 times, and the recommended inquiry range is 29.

60-44.

40 yuan / share.

  Risk reminder: the product development progress is less than expected, and the optical guidance system has technical iteration risks; the military product market is intensifying and the civilian product market is developing less than expected; the customer concentration is high, and the risk of bad debts caused by the increase in bills receivables and accounts receivables; military productsThere is uncertainty about premium income.