Haige Communications (002465): 3Q19 Results Meet Expected Profit Quality Improvement

Haige Communications (002465): 3Q19 Results Meet Expected Profit Quality Improvement

The first three quarters of 2019 results are in line with expectations The first three quarters of results announced by the company: Revenue 28.

$ 4.5 billion, an annual increase of 7.

96%; net profit attributable to mother 3.

1.1 billion US dollars, an annual increase of 19.

29%; net profit after deduction to mother 1.

7 per cent, an increase of 49 per year.


Meet our expectations.

  Entering the accelerated growth channel as scheduled, the quality of single-quarter 天津夜网 earnings increased.

The company achieved revenue in 3Q8.

7ppm, an annual increase of 8%, a gross profit margin of 37%, an annual increase of 7ppt, and a gross profit of 33%.

Expenses were well controlled, and the expense ratio was basically flat throughout the period.

3Q net profit is 0.

USD 8.8 billion, an annual growth of 20%, the company entered the accelerated growth channel as expected (1Q / 2Q net profit increased 16% / 19% per year).

The net profit margin in a single quarter was 10%, which was increased by 1 ppt per year, and the quality of earnings continued to improve.

  The development trend re-optimistic about the development prospects of various businesses.

1) Wireless communication: The company is an expert in wireless communication equipment with full broadband coverage, and has achieved breakthroughs in several key projects (multi-mode smart terminals have obtained the first batch procurement task, and the first domestic integrated equipment development bidding is ranked first.Finalists).

2) Beidou Navigation: It has realized the entire industry layout and has first-mover advantages in core technology areas such as new Beidou products.

3) Aerospace: With autonomous and controllable high-level flight simulators, the market development progress is worth looking forward to.

  Earnings forecasts and estimates remain unchanged.

The company’s current consensus corresponds to 38.

4x / 27.

5x2019e / 2020eP 武汉夜生活网 / E, at the bottom of historical expectations.

Maintain the target price of 12 yuan (SOTP estimate), corresponding to 48x / 35x2019e / 2020eP / E, a potential increase of 26%.

Maintain Outperform rating.

  Uncertainty in risk equipment orders and delivery.