Aerospace Development (000547): The rapid growth of the third quarter results is optimistic about the company’s endogenous and extended development

Aerospace Development (000547): The rapid growth of the third quarter results is optimistic about the company’s endogenous and extended development
Event: The company announced the third quarter report of 2019, and achieved operating income for the first three quarters23.52 ppm, an increase of 44 in ten years.07%, net profit attributable to mothers3.08 million yuan, an increase of 39 in ten years.31%, the corresponding return (decrease) is 0.19 yuan. Comments: 1. The company’s performance is growing rapidly, and it is optimistic about the company’s traditional electromagnetic technology and communications declaration business and the long-term development of new industries.(1) Reporting strength, the company realized operating income23.52 ppm, a rapid increase of 44 over the same period last year.07%, mainly due to the increase in the company’s defense equipment industry income, and the consolidated scope of the statement in this period expanded compared to the same period last year. (2) Reporting strength, the company realized net profit attributable to mother.08 million yuan, an increase of 39 in ten years.31%, the growth rate is slightly lower than operating income, mainly affected by the following factors: ① reported that the company’s overall business gross margin decreased compared to the same period last year.79pct, mainly due to the direct impact of the report, the company’s operating costs increased with the increase in revenue, and the cost of certain additional items in the current period was higher; ② Reported growth rate, the company’s sales expense ratio increased compared to the same period last year.16pct to 3.63%, mainly due to the increase in the company’s product market in the current period and the increase in the scope of consolidated statements over the same period of the previous year; ③ There were more reports and the company’s credit impairment losses increased by 86.35% is mainly due to the increase in receivables and the increase in provision for bad debts.(3) Report strength. The company’s inventory increased by 43 compared with the beginning of the period.61%, an increase of 23 over the same period last year.64%, mainly due to the company’s production tasks in progress, increase in work in progress; advance receipts of 0.84 ppm, an increase of 11 years.89%, -13 from the same period last year.14% growth rate increased by 25.04pct, the relevant indicators may indicate that the company’s business orders are in good condition and production capacity is released.(4) The reporting authority, the company’s net cash flow from operating activities is -9.38 trillion, down 44 a year.37%, mainly due to the increase in production and operation demand of the reported large-scale companies, and the corresponding increase in material procurement and labor expenses. 2. Benefiting from practical military training and national defense informatization construction, the electromagnetic technology business has broad development space.The company’s electromagnetic technology engineering business mainly includes electronic blue army, simulation applications and electromagnetic security business.Among them, the electronic blue army business with Nanjing Changfeng as the main operating body mainly includes three aspects of laboratory RF simulation test system, internal and external field active target simulation system and simulation radar system., Has won multiple military projects.The performance of the electromagnetic security industry, with its subsidiary Beijing Ou Di An as the main body, has obvious integration performance, achieved technological breakthroughs in multiple fields, and has integrated the ability to integrate integrated solutions for microwave darkroom construction systems.The military-civilian simulation business, which takes aerospace simulation as its main business body, is leading the industry in military simulation, equipment information 北京养生会所 and virtual reality.The White Paper on “China’s National Defense in the New Era” states that the entire army has been undergoing an upsurge in combat-oriented military training. Since 2012, the army has extensively carried out mission-oriented training in various strategic directions and training in various arms and services.Against the backdrop of increasing military training requirements, the company is expected to benefit in the long term as a leader in the electronic blue army field. 3. Communications announced its business as “second venture” and actively laid out a new pattern for the development of the mobile communications industry.The company’s subsidiary, Chongqing Jinmei, is a provider of domestic military tactical communication system core equipment. It focuses on the development and production of military 四川耍耍网 information systems and key equipment, and vigorously develops the new generation military service market and tactical allegation information system.The company has steadily carried out the broadband communication level of “Feiyun Engineering” and the development of major engineering projects for the construction of “Hongyun Engineering” ground gateways, which has realized the extension to the space information application industry.On August 27, 2019, the company announced that it had intervened with the Strategic Framework Agreement of the New Generation Mobile Communication Technology Research Institute Cooperation Project with the Chongqing Municipal Economic and Information Commission and the Chongqing Xiyong Comprehensive Free Trade Zone Management Committee.Relying on the construction of Chongqing’s information industry, driven by the demands of public networks, private networks, and military networks, the company strived to seize historical opportunities to promote the transformation and upgrading of the communications industry sector. 4. Accelerating the extensional development, the growth of network information security business can be expected.The company acquired Rui’an Technology 43 by issuing shares.34% equity, 100% equity of One Binary and 100% equity of Aerospace Kaiyuan, and announced that they will steadily advance the acquisition of the controlling stake in Rui’an Technology, and are committed to building a national team of network information security.Among them, Rui’an Technology mainly provides big data services for public security, network information, operators, etc .; two-way binary user data protection and business continuity management software development; Aerospace Kaiyuan applies software and hardware to the e-government industry, and the three companies belong to network information security.Different sectors of the industry.China’s network information security market is developing rapidly. According to IDC’s forecast, by 2023, the size of China’s network security market will grow to 179.0 billion US dollars, CAGR of about 25 in 2019-2023.1%.With the domestic cybersecurity law, the level of protection is 2.With the gradual implementation of relevant laws and regulations such as 0, the company’s network information security business is expected to usher in new growth points. 5. The micro-system industry has made a good start and improved the existing industrial structure.In November 2018, the company jointly established a micro-system technology company with China Aerospace Radio, Smart Shanghai, Nanjing Hangzhi Investment, Nanjing Changfeng, and Chongqing Jinmei.Since its establishment, the company has focused on the four major development directions of integrated micro-system integration design, core system-level chip development, micro-system design simulation software and micro-system key process capabilities. It has actively docked with industry user units and reached cooperation on multiple project development.Extensive aerospace equipment, 5G communications, satellite communications, Internet of Things and other fields.The company’s micro system business makes full use of industrial capital, increases the upstream and downstream integration speed of the industry, improves the existing industrial structure, and deploys new-generation weapon equipment system-level chips and complex micro-system technology development and development production, and gradually expands into the civilian field and grows in the future.Expected. 6. The mid-to-high end marine equipment system was gradually established, forming a synergy effect of the marine blue army business.In 2017, Nanjing Changfeng, a wholly-owned subsidiary, acquired 65% of the equity of Jiangsu Dayang Marine Equipment Co., Ltd. This acquisition of full-mission system target ships, high-speed target ships, large offshore ships and other marine blue army equipment development businesses has enhanced the company’s electronicsThe blue army equipment supporting level enhances the overall development strength of the industry sector.At present, the company’s marine equipment business takes green environmental protection and energy saving ship products as a breakthrough, focusing on the development of environmental protection and energy saving refueling ships, wind power installation and maintenance platforms and other marine product development.In 2019, Jiangsu Dayang officially started the construction of two 13KDWT green environmental protection chemical tanker projects for Singapore shipowners, and the first 7999DWT environmental protection tanker completed the launching ceremony in Taizhou City, Jiangsu Province.In the future, the mid-to-high end offshore equipment system will be gradually established, and the company’s offshore equipment business will still have a certain growth space. 7 As one of the listed platforms of Aerospace Science and Industry Group, it is expected to continue to inject the assets of the Group. The company is a listed company directly controlled by Aerospace Science and Industry Group. As an important military industry and capital integration platform of Aerospace Science and Industry Group, since its listing in 2015, the company has actively carried out outbound mergers and acquisitions, continuously expanded its business scope, and successively acquired computer simulation companiesIndustrial simulation, target ship research and development company Jiangsu Dayang, network information security company Rui’an Technology, Aerospace Kaiyuan and Prime, continue to improve the information business layout.In 2018, the aerospace science and industry group’s asset securitization rate gradually increased by about 30% according to the net asset caliber, which is less than the target of the asset securitization rate of 45% at the end of the “13th Five-Year Plan” period.Sex. 8. Profit forecast and investment advice: We believe that the company is expected to continue to maintain its competitive advantage in the electromagnetic and communications sectors, and actively deploy network security, microsystems, and marine information equipment sectors, which have broad prospects for future development, and give the company a “recommended” rating. Our EPS forecasts for the company in 2019/20/21 are 0.37/0.48/0.62 yuan, corresponding to 2019/20/21 PE is 27/21/16 times. Risk warning: the acquisition progress is not up to expectations; the growth of traditional advantage businesses is slow