Gaode Infrared (002414): 18 years of rapid growth in performance optimistic about the long-term development of the company’s infrared industry

Gaode Infrared (002414): 18 years of rapid growth in performance optimistic about the long-term development of the company’s infrared industry
Event: The company released its 2018 annual report and achieved operating income in 201810.8.4 billion, an annual increase of 6.61%, net profit attributable to mothers1.32 ppm, an increase of 125 in ten years.98%, the corresponding return is 0.21 yuan; a cash dividend of 0 for every 10 shares distributed to all shareholders.30 yuan (including tax), the capital reserve will be transferred to all shareholders for every 10 shares of 5 shares. Comments: The slight increase in revenue, the increase in asset impairment losses and the increase in other incomes have driven the company’s 2018 performance to achieve rapid growth.The report baseline, (1) the company’s total operating income reached 10.84 ppm, a six-year increase of 6.61%, which is basically: ① In the report merger, the company achieved excellent results in a number of domestic military and military bidding projects while maintaining a stable supply of existing military products, and entered the stage of finalizing batch production.The production capacity of informatization ammunition will be further released to realize the development of internal and international new business fields; ② The company promotes the military-civilian integration strategy and continues to expand the technical application field while deepening the field of infrared thermal imaging.(2) At the same time, the company’s net profit attributable to its mother reached 1.32 ppm, achieving high-speed 杭州夜生活网 growth, 125 years of growth.98%, its growth rate exceeded the growth rate of revenue, mainly due to: ① the company’s asset impairment losses significantly reduced 0 during the reporting period.9.4 billion, a decrease of 150 every year.41%, mainly due to the company’s provision for bad debts based on the aging of the account; ② other income increased, it increased by 266%, of which the relevant national policies enjoy preferential benefits increased by 0 compared with the previous year.72 ppm, R & D promotion grant increased by 0.10,000 yuan.(3) The proportion of the company’s accounts receivable in total assets has decreased for many years4.The 32 single ones are mainly due to the report that the overall sales rebates are better, and the accounts receivable balance at the end of the year decreased earlier; the company’s total 杭州夜网论坛 operating cash flow increased by 2 in 2018.5.9 billion, mainly benefited from the good sales receipts during the reporting period and the increase in settlement of purchases.The company implements the strategic goal of “parallel development of military and civilians”, focuses on its main business, steadily advances the company’s development and production tasks, and is expected to enter a “new era” of sustainable long-term development. The company is a leader in China’s infrared industry, with infrared core technology capabilities, and has become a benchmarking company for the civilian participation army.The company is the country’s largest and internationally renowned R & D and production enterprise of photoelectric systems and weapon systems with infrared thermal imaging technology as its core.In 2014, the company’s fourth-generation portable anti-tank missile received relevant military wage qualifications. It is the only private enterprise that has obtained domestic weapon system development qualifications and has provided our army with a main battle weapon system.A private enterprise that has obtained the overall qualification of a missile weapon system.The company has a domestic advanced 8-inch controllable.25μm special production line for vanadium oxide (VOx) uncooled infrared detectors, one 8-inch 0.5μm mercury cadmium telluride (MCT) refrigerated infrared detector dedicated production line and an 8 inch 0.The 5μm batch production type second-class superlattice (T2SL) refrigeration infrared detector dedicated production line can independently and controllably supply various types of high-performance non-refrigerated, refrigeration infrared detector products to the industry in batches.The company’s infrared products go hand in hand with the civilian population, and its revenue in 2017 was 5.US $ 8.8 billion, covering all services of land, sea and air. According to the “2017-2023 China Infrared Camera Market In-depth Research and Investment Strategy Research Report” by Zhiyan Consulting, the annual market size of the Chinese Army and civilian infrared systems is about 3 billion, 18.700 million, the company’s infrared business is expected to continue to develop well. The active deployment of informatization ammunition is expected to continue to benefit from the vigorous advancement of national defense informatization construction.The company wholly acquired Handan Mechanical and Electrical in 2015 and successfully entered the field of pyrotechnics, expanding its business to the traditional non-lethal ammunition and information ammunition series of military products.After the acquisition, Handan Electromechanical’s compound annual growth in net profit for 2015-2017 reached 62.52%, significant synergy.In 2017, the company established the Gaode Missile Research Institute with a complete military industry group structure to maximize the optimization and integration of internal resources of the system, and completed the development of the first domestic weapon system of a certain type.According to data from China Industry Information Network, the total scale of national defense informatization is expected to reach 1.66 trillion, and 2025 national defense informatization expenditure (628.4 billion) is expected to account for 40% of defense equipment costs.The informatization of ammunition is an important part of the informatization of weapons and equipment. The company’s informatization ammunition business is promoted by the rapid development of national defense informatization. Practice the deep integration of military and civilians, actively deploy the civilian market, and break through the growth ceiling.Relying on advanced core technical capabilities in the field of infrared-based optoelectronic systems, the company actively lays out personal vision, industrial inspection, smart home, consumer electronics and other civilian markets, and cooperates with Midea and other industry leaders to build an infrared industry chain ecosystem and strive to achieveThe “consumer productization” of infrared thermal imaging technology is a deep integration between military and civilians.The company’s core technology capability in the field of infrared detectors is the key to opening the civilian market. The continuous advancement of wafer-level packaging has gradually made the timetable for the opening of the civilian market gradually clear.The breakthrough in the civil market is expected to enable the company to hold a 100 billion-level market and break through the growth ceiling of military products. Profit forecast and rating: Considering that the company is expected to continue to benefit from the in-depth development of military-civilian integration, the broad space of the military-civilian infrared market and the company’s qualifications and technical advantages in the infrared technology field will be given to the company./ 21 years of EPS forecasts are 0.36/0.47/0.64 yuan, corresponding to 80/62/45 times the PE in 2019/20/21. Risk Warning: The military equipment is below expectations, and the civilian market is expanding beyond expectations.