Aerospace Appliances (002025) Third Quarterly Report 2019: Research Expansion and Other Factors Affect Current Profits

Aerospace Appliances (002025) Third Quarterly Report 2019: Research Expansion and Other Factors Affect Current Profits
The company released the third quarter report of 2019, and the company achieved operating income of 25 in the third quarter before 2019.12 ppm, an increase of 28 in ten years.11%; realized net profit attributable to mother 2.97 ppm, an increase of 11 years.34%. Comment: Revenue maintained steady growth: The combined company’s revenue remained stable, of which single- and third-quarter revenues achieved operating income.93 ppm, an increase of 12 in ten years.68%, the main reason for the decline in growth rate is the high base of revenue scale in the third quarter of 2018, and by 50% in 2017, so the growth rate in this period has improved; R & D increased, 5G communications and other services increased the proportion of mergersFactors such as the increase in raw material prices have led to faster 天津夜网 growth of the company’s profits: the company achieved net profit attributable to its mother in the single quarter of 2019Q3.09 million yuan, an increase of 0 in ten years.09%. The company’s gross profit margin for the first three quarters of 2019 was 36.77% twice a year.42 units; net interest rate 12.85%, ten-year average 1.17 units.The company’s profitability has improved compared to the same period last year. The following are preliminary: The first is the substantial increase in R & D investment and R & D expenses.66 ppm, 28 per year.59%, R & D expenses for the third quarter alone were 1.45 ‰, an increase of 31 per year.8%, mainly due to the increase in research and development of new products such as 5G; the second is the rapid growth of 5G communications and other services, the proportion has increased, the overall gross profit margin of aerospace products, and therefore affect the overall gross profit margin; the third is the application ofThe increase in the size of receivables has led to an increase in asset impairment losses by 39 each year.3%, reaching 85 million; the fourth is the rise in prices of raw materials such as precious metals and special chemical materials. The aerospace business remains stable, and 5G communications and other services are in the early stages of an outbreak. We are optimistic about the company’s development prospects: the company’s competitive advantage will increase, and its accumulation will be thin, and it is expected to usher in an explosion.Optimistic about the company’s future development prospects. Profit forecast, estimation and investment grade: Considering several factors that affect the company’s revenue and profitability, we adjusted the company’s forecast of net profit attributable to the mother for 2019-2021, which is 4 respectively.1.4 billion, 5.03 billion and 6.21 ppm (was 4).30 billion, 5.02 billion and 5.7.5 billion), the corresponding EPS is 0.96 yuan, 1.17 yuan and 1.45 yuan (the original EPS was 1.)00 yuan, 1.17 yuan and 1.34 yuan).Considering the stable growth trend of the company’s aerospace business and the good prospects of the 5G communications business, the target price is maintained at 35 yuan, corresponding to 36 times PE in 2019, and the “strong push” rating is maintained. Risk warning: aerospace business order growth rate improves, 5G communications and other areas expand less than expected