China Coastal Defense (600764): The client’s formulation of plans and the adjustment of the schedule of the assembly plant do not affect the long-term operation of asset injections.
Event: The company achieved revenue in the first half of 20191.
1.5 billion, down 8 a year.
59%; 1453 net profit attributable to mother.
140,000 yuan, down 7 every year.
90%.
Key points of investment The adjustment plan of specific customers and the adjustment of the overall schedule of the assembly plant will not affect long-term operations.
In terms of business, the revenue of special-equipped electronic products was 8,326.
660,000 yuan, a decrease of 19 per year.
62%; test and inspection services income 165.
540,000 yuan, a decrease of 58 per year.
03%; income from special power sources such as ballast water 74.
110,000 yuan, a decrease of 85 per year.
63%, income of power tools and other 2264.
640,000 yuan, an increase of 173 in ten years.
55%; Real estate lease income is 592.
310,000 yuan, an increase of 80 in ten years.
20%.
Automotive electronics revenue 42.
900,000 yuan, down 63 every year.
61%.
At present, the company is gradually optimizing its product structure and flexibly exiting low-value-added industries under the premise of controllable risks to further improve the company’s profitability.
The decline in Great Wall Electronics’ first half of the year was mainly due to the adjustment of specific customer delivery plans and the overall schedule of the assembly plant. At the same time, due to the reform of the pricing review pricing model, the company’s various new research equipment contract prices were not determined.The conditions for revenue recognition were met, which affected the progress of profit realization in the first half of the year.
The gross profit margin and operating cash flow have improved slightly compared to last year, and the net profit margin has remained basically the same.
Affected by the decline in revenue in the first half of the year, the company’s operating costs increased by 10%.
13%, gross margin 44 in the first half.
45%, compared with 43 in the same period last year.
49%, a slight increase.
Selling expenses also fell in the first half of the year6.
34%, management expenses increased due to factors such as investment in information platform construction and increase in employee compensation6.
74% in the first half of the year.
67%, compared with 12 in the same period last year.
58%, basically unchanged.
In the first half of the year, the company’s net cash flow from operating activities was -2144.
620,000, compared with -9767 in the same period last year.
02 thousand.
The reconstruction 深圳spa会所 plan is advancing steadily.
According to the latest announcement, the company plans to make a price of 67.
500 million acquisition of Haisheng Technology, Liaohai Equipment, Jerry Electronics and other six companies, including 59 shares.4 billion (issue price is 21.
49 yuan / share), cash payment 8.
1 billion, while non-publicly raised funds do not exceed 32.
01 billion.
Through this reorganization, China Haiphong ‘s main business is to expand the underwater information transmission to underwater information acquisition, underwater information detection and countermeasures, underwater evidence systems and supporting equipment to achieve full coverage of all professional areas of underwater information systems.
At the same time, it is clear that the company, as a part of the group’s electronic information industry integration platform, thoroughly opens up the business and capital channels of the research institute and listed companies in advance.
After the completion of this injection, China Haiphong’s height as the only integrated platform for the electronics and information industry sector of CSSC Heavy Industry Group has become clearer.
Democracy, the company has announced that the shareholder is China Shipbuilding Industry Corporation and China Shipbuilding Industry Corporation is planning a strategic reorganization. We estimate that the annual profits of the two groups’ external informatization assets will reach billions of dollars.
Investment suggestion: For prudence and consideration, the current forecast does not include the newly injected assets and is published. Considering the maximum amount of matching funds to be raised, the company’s net profit is calculated according to performance commitments. After the reorganization, the current price of China Coastal Defense corresponds to about 33 times PE in 2019, 2020.About 28 times a year.
Risk warning of maintaining “Buy” rating: slow progress in asset integration.