Weihai Guangtai (002111) Company Dynamic Comment: The main industry’s overall prosperity performance has made great strides

Weihai Guangtai (002111) Company Dynamic Comment: The main industry’s overall prosperity performance has made great strides

Event: On October 29, 2019, the company released the 2019 third quarter report.

On January 9, 2019, the company achieved revenue of 17.

29 ppm, an increase of 12 per year.

98%, net profit attributable to mothers2.

70 ppm, an increase of 51 per year.


Revenue in Q3 2019 was 7.

63 ppm, an increase of 43 in ten years.

4%, realizing net profit attributable to mother 1.

560,000 yuan, an increase of 196 in ten years.


The growth of the third quarter results and the repurchase of shares shows confidence: benefiting from the delivery of military products in the third quarter and the growth of gross profit margin, the company achieved net profit attributable to its mother from January to September 杭州桑拿 20192.

70 ppm, an increase of 51 in ten years.

08%, net profit attributable to mothers in Q3 20191.

560,000 yuan, an increase of 196 in ten years.

25%, the overall performance achieved substantial growth.

In terms of gross profit margin, the gross profit margin for the first three quarters of 2019 was 32.

71% in the third quarter, achieving a quarterly gross margin of 38%, the highest gross margin in a single quarter in the past two years.

In addition, the company repurchased its shares for the first time on September 14, 2018. As of August 1, 2019, the company gradually repurchased 675.

900,000 shares, the payment amount reached 7559.

500,000 yuan, continued to release positive signals to the market, further highlighting confidence in future development.

Both the airport equipment and fire protection 无锡夜网 businesses benefit from the downstream demand boost: In terms of airport equipment, benefiting from the steady development of the civil aviation industry and favorable policies for the construction of the airport cluster, downstream demand for airport equipment will continue to boost.

On January 9, 2019, the civil aviation industry realized a total transportation turnover of 965.

700 million ton-kilometres, an increase of 7 in ten years.

7%, completed 544 of cargo and mail transportation.

8 for the first time, with an annual increase of 0.

5%, the steady development of the civil aviation industry guarantees the demand for airport ground equipment.

As the world’s most complete supplier of airport ground equipment, the company’s internal market share of some combined products has reached 40-60%. The airport business has made significant breakthroughs in mid- to high-end customers and the military market.Two-year contract1.

It has operated seven key projects, including the Capital Airport, totaling more than 10 million US dollars, and is 5 years longer than the military.

The 160,000 yuan equipment order contract accounted for 23 of the company’s audited operating income in 2018.

57% of the products are fully recognized by the military.

In terms of fire protection business, benefiting from shortcomings in infrastructure construction, reform of the fire protection system, comprehensive advancement of “smart fire protection” construction, and improvement of people’s awareness of fire safety, the fire protection industry has a lot of room for development.

With respect to the competitiveness of the industry benchmark, the company’s fire trucks have achieved outstanding results in the mid-to-high-end product field, which has caused the company’s gross profit margin to far exceed that of the industry revenue to quickly catch up to the height of the fire truck industry.

The impact of goodwill impairment has been reduced, performance compensation has been completed, and strong order growth has helped the company’s military drone business to enter the market lightly and start high growth: in 2018, the era of goodwill in China stopped the impairment of goodwill, and since the acquisition, it has achieved positive profits for the first time, but turned losses.For profit, the first half of 2019 achieved revenue of 59.

With a high growth of 68%, the impairment of goodwill affects the expected release of dissipated performance.

In addition, in July 2019, the company completed the performance commitment compensation with the original shareholders of Quanhua Times, and received a total of zero cash compensation and equity compensation.

US $ 3.6 billion, which had a significant positive impact on the company’s business operations this year.

At the same time, the company’s drone business obtained large military orders to ensure the company’s subsequent high growth.As of August 2019, the company announced that it has been contracting military drones for many years.

US $ 3.5 billion, through the company’s unmanned aerial vehicle serialization and high-end research and development, the company continued to deeply cultivate the drone market of various arms and services, successfully developed two new military drones, and successfully tested in the field, further increasing the military market recognitiondegree.

Investment suggestion: Considering the large-scale economic performance of the main industry, we expect that the net profit attributable to mothers will be 3 in 2019-2021.

1.3 billion, 3.

8.5 billion, 4.

64 ppm, EPS is 0.

82 yuan, 1.

01 yuan, 1.

21 yuan, corresponding to PE is 18 times, 15 times, 12 times.

Risk reminders: Macroeconomic downturn, civil aviation demand, fire protection system reform ‘s impact on bidding progress is more than expected, military product demand or order delivery is less than expected, intensified industry competition results in profitability, overseas business expansion is less than expected, and goodwill is impaired