Dongxing-radar field national team PK Guorui technology is more white than Fanchuang Electronics

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Dongxing: National Team PK Guorui Technology in Radar Field Is Whiter than Sitron Electronics

[Dongxing Military Industry]Guorui Technology VS Sitron Electronics details the Dongxing Military Industry Luzhou team Guorui Technology and Sitron Electronics are very typical military-civilian listed companies under China Electronics Technology Group Co., Ltd.”Team” targets are often compared by the market.

  Abstract: The white horse stocks of Guorui Technology have stronger attributes, have 14 leading styles and big brothers, and the asset injection is expected to be more profound.

Si Chuang Electronics has more inertia and operational vitality, and it is more enthusiastic to fight for the military-civilian dual-use market.

  1. Research feasibility: (1) Business rarity: Among them are meteorological radar and air traffic radar complete machine manufacturing enterprises, which are the only listed companies.

In addition, listed companies with a relatively high radar business include Sichuan Jiuzhou, Lei Ke Defense, Tianyin Electromechanical, and Sichuan University.

But it cannot be compared with technology or product.

  (2) Observation window for national defense informatization: As a result of supporting the China Electricity Division 38 and 14 processing facilities, it is a window for observing military electronics.

At present, the revenue and net profit of radar in the field of national defense informationization (including radar-like, information security, military communications, military electronics, and satellite navigation) account for about 10%.

China Electronics Technology Group Co., Ltd. belongs to 8 A-share listed companies. Among them, 4 are involved in the military business, Sitron, Guorui, Jiesai Technology and Weishitong, but Sitron and Guorui directly support 38 and 深圳桑拿网 14The 38 and 14 sites cover almost all military radar fields, with high market share and unique technology in Asia.

Observing the supporting business of Si Chuang and Guo Rui is a window to track the dynamics of the hi-tech national defense informatization field.

  (3) The weathervane of the asset securitization of central SOEs: The proportion of asset securitization of China Electronics Technology Group Co., Ltd. is low, and the group’s asset operation intention is strong.

Shuangchuang has established the Bowei sub-group, and subsequent Guorui Technology will also establish sub-groups. Many companies are the only listing platforms.

The demonstration effect of CLP’s capital operation model is obvious. Tracking the four innovations and Guorui has become the vane of the securitization of assets of military industry central 南京桑拿网 enterprises.

  2. We summarize the two similarities and differences as follows: In addition, the same points: (1) Both are “small companies, large institutions” layout.

Behind the four innovations is the Boweizi Group (including CLP Tech’s 8th, 16th, 38th and 43th), while Guorui Technology is behind CLP’s 14 and its Guoruizi Group is about to be established.

  (2) All started out as radars, and they all use radar technology as the core to expand multiple business fields. At present, civilian products account for a large proportion.

In 16 years, the proportion of Si Chuang’s military products was 15% (approximately 30% after the acquisition of Bowei Changan), and the proportion of Guorui military products was 45%.

  (3) Radar products are concentrated in the fields of weather radar and air traffic control radar.

In 2016, the proportion of the company’s weather radar and air traffic radar business was roughly 1: 1.

  (4) All support the backyard operation.

Shuangchuang has 38 matching power supplies and Guorui has 14 matching microwave components.

  (5) All have asset injection expectations.

China Electronics Technology Group Co., Ltd.’s asset securitization ratio is not high. In 2016, the asset side was estimated to be 27% and the revenue side was 29%. The company’s asset injection is expected to be very high.

  (6) Neither company’s equity incentive mechanism has been established.

At the end of 2015, Shuangchuang Electronic formulated the “Employee Shareholding Plan”, but due to changes in the securities market at that time, employees gave up this subscription.

Guo Rui has no announcement of the incentive mechanism.

  (7) Both have issued “upside down”.

Guo Rui additional price of 31.

21. The price of Shuangchuang increased by 61.

48. At present, all the companies have issued “upside down”.

  The differences between the two are: (1) The revenue of Si Chuang is nearly 3 times that of Guo Rui, and the gross profit margin of Guo Chuang is nearly 3 times that of Si Rui.

In 2016, four revenues were 30.

5 billion, while Guo Rui only has 12.

600 million; Guorui’s 16-year gross profit margin was 34%, and Shuangchuang’s 16-year gross profit margin was only 12%.

  (2) The average annual growth rate of Shuangchuang’s revenue is faster than net profit, while that of Guorui is opposite.

In the past 5 years, the average annual growth rate of Shuangchuang’s revenue was 32%; in the past 4 years, Guorui’s annual revenue growth rate was 12%, and its net profit attributable to its mother was 34%.

  (3) Four innovations have been injected, while Guo Rui did not.

The 38 institutes injected Bowei Changan into Four Innovations, and the consolidation was completed in the middle of 17 years.Guorui has no asset injection.

  (4) Except for the radar business, the business areas are very different.

Sitron radar business accounted for 23%, which was lower than Guorui’s 56%.

Four-scale capacitors, but it is not the high-margin radar business that underpins its scale. Guorui is small in size and is more concentrated in radar and microwave devices (accounting for 80%).

  The four largest revenue contribution is in the field of public safety, which accounted for 30% of revenue in 2016, as well as power supply business (14%) and energy business (13%); Guorui radar business has the largest revenue, and is basically involved.Microwave devices (24%), rail transit signals (11%) and special power sources (9%).

  Summary: Guorui and Shichuang are rare local leaders in the field of military radar. They have survived the trough of radar business for 17 years (through the influence of military reform) and other businesses of the combined company are rapidly expanding. They have replaced radar belts.Coming revenue vacancies.

We firmly believe that after the storm, there will be a rainbow, and the delayed radar demand will not disappear, and asset securitization needs to accelerate. In 2018, the radar field of military information technology is optimistic.

The white horse of Guorui Technology has stronger attributes, with 14 leading styles and one brother.

The operation vitality of Shuangchuang Electronics is more sufficient, and the enthusiasm for fighting for the dual-use market is also worthy of attention.

  Profit forecast: Guorui Technology: We estimate the company’s net profit attributable to its mothers to be 2 in 2017-2019.

1.4 billion, 2.

80 billion, 3.

5.1 billion yuan, EPS is 0.

45 yuan, 0.

58 yuan, 0.

73 yuan, corresponding PE is 46X, 35X, 28X.

Growth potential of company performance.

Considering the company’s expectation of asset injection, we believe that the company’s 2018 estimate of 45 times is reasonable and give the company a “strong recommendation” investment rating.

  Shuangchuang Electronics: We estimate that the company’s net profit attributable to its mother for 2017-2019 will be 2.

03 billion, 2.

6.1 billion, 3.

01 billion, EPS is 1.

27 yuan, 1.

64 yuan, 1.

89 yuan, corresponding PE is 35X, 27X, 24X.

The company’s performance has maintained a steady growth, taking into account the integration of Bowei Changan and the expected increase in asset injection in the future. We believe that the company is 30 times 2018 variable and reasonable, and give the company a “strong recommendation” investment rating.