Zhenhua Technology (000733) Semi-annual Report Review: Military Electronics Continues to Grow and Technological Innovation Makes Remarkable Results

桑拿

Zhenhua Technology (000733) Semi-annual Report Review: Military Electronics Continues to Grow and Technological Innovation Makes Remarkable Results

Event: The company released the semi-annual report for 2019, and the company achieved operating income from January to June 2019.

7.3 billion, down 28 from the same period last year.

08%; Net profit attributable to shareholders of listed companies.

190,000 yuan, an increase of 33 over the same period last year.

75%.

Withdrawing from the communications business, military electronics continued to grow.

The report summarizes that the company further focused on the core industry of military electronics and gave up its controlling stake in Shenzhen Communications. Since May 2019, Zhenhua Communications, a subsidiary of the company, will no longer repeat the scope of consolidated statements and the entire communications machine will no longer be the company’s main business.

From January to April 2019, Zhenhua Communication achieved operating income3.

22 trillion, down 77 from the 杭州桑拿网 same period last year.

7%.

From January to June 2019, new electronic component boards achieved operating income18.

310,000 yuan, a year-on-year increase of 19.3 million
.

66%, accounting for 84% of the company’s total operating income.

28%; net profit 2.

190,000 yuan, an increase of 33 over the same period last year.

75%; gross margin level is as high as 47.

40%, an increase of 6 over the same period last year.

32%, profitability has steadily improved.

We believe that with the continuous optimization of the transformation of the industrial structure, the company’s performance is expected to maintain stable and rapid growth.

The achievements in scientific and technological innovation are remarkable, and the product system is moving towards high-end.

In total, the company has applied for 116 patents and obtained 101 patent authorizations. It currently has 1,058 patents.

The company’s rapid product technology upgrades, improve the IGBT chip pedigree and series chip development; promote miniaturization, high power, high frequency, high reliability as the direction to promote the technical upgrade of general component products; rapid intelligent mechanical and electrical components / modules development; rapid advancement of LTCC, MLCC The design of series materials is to continue to advance the research and development of electronic functional ceramics and precious metal powders, and further expand the advantages of the basic component industry ecological chain.

Strengthen the coordination of scientific and technological innovation resources, deepen the collaborative innovation of industry-university-research institutes, increase mutual visits with high-level institutions of higher learning, strengthen technical exchanges, and expand the breadth and depth of industry-university-research institutes.

According to the report baseline, three projects of Zhenhua Fu ‘s “Development and Industrialization of LTCC Microwave Components”, Zhenhua Qunying ‘s “Herospace Magnetic Retention High-Voltage DC Contactor” and Zhenhua Yunke ‘s “Single-Layer Chip Ceramic Capacitor”The third prize of Guizhou Province’s 2018 annual scientific and technological progress promotes the product system to high-end.

Profit forecast and investment grade: The company’s net profit for 2019-2021 is expected to be 1.

4.4 billion, 3.

5.2 billion, 4.

13 trillion, EPS is 0.

28 yuan, 0.

68 yuan, 0.

80 yuan, corresponding to PE is 58 times, 24 times, 20 times, maintaining the “buy” level.

Risk warning: the scale of new energy business expands; asset integration is less than expected.