Deepin * Company * Hager Communications (002465): Military products business continues to grow and lay out 5G development future
In 2018, the company achieved operating income of 40.
70 ppm, an increase of 21 in ten years.
41%, net profit attributable to mother 4.
30 ppm, an increase of 46 in ten years.
Key points of support levels Military orders have been fully restored, helping high-speed growth.
In 2018, the company’s operating conditions were significantly improved, and net profit attributable to mothers reached 4.
30 ppm, a significant increase of 46 per year.
With the potential for the implementation of the military reform, the company achieved new military contracts during the year.
52 ppm, an increase of 51 in ten years.
At 26%, orders for military products increased significantly, bringing significant recovery growth to the company’s performance.
In addition, the company’s management efficiency has improved significantly, and sales expenses, management expenses and financial expenses have decreased by 7 杭州夜网 respectively.
56%, more efficient cost control, the company is expected to resume the trend of continued growth in performance.
Focus on four core businesses and build the company’s competitiveness.
The company continues to focus on four core businesses. In the field of wireless communications, satellite communications is committed to winning bids for new military services and opening new military markets. In the field of civilian Beidou, the subsidiary Xingyu Technology has deployed to build Beidou high-precision location service platforms.The high-precision map coverage of the core cities of the Pearl River Delta has been completed, covering the whole country within the year; in the field of pan-aerospace, aiming to capture the military training simulator market; in the field of communications services, the newly signed contract exceeded 2 billion yuan, 天津夜网 and orders reached a record high.
The company’s competitiveness in the industry has been strengthened.
Continued research and development with high investment and 5G layout will help the company’s future growth.
The company is highly aware of technological innovation, and its R & D investment in 2018 was 6.
5.8 billion, accounting for 16.
With the expansion of 5G business, the company continues to increase the development of 5G products and technologies, laying the foundation for 5G operation and maintenance optimization business.
Recently, the company and the three major operators jointly signed the Guangzhou 5G Demonstration Zone Construction Project, creating the country’s first 5G technology-oriented IoT and smart city application demonstration zone, which is the cornerstone of developing future market potential.
Based on the 2018 results, we estimate that the company’s EPS for 2019-2021 will be 0.
40 yuan (previous forecast was 0.
30 / -yuan), corresponding to P / E ratios of 41.
2x, maintain BUY rating.
The main risks faced by the rating are that the growth of military orders has fallen short of expectations, and Beidou’s application promotion has fallen short of expectations.