Gaode Infrared (002414): Over 500 Million Military Contracts Concentrated Extension and Efforts to Maintain High Growth in 2020

Gaode Infrared (002414): Over 500 Million Military Contracts Concentrated Extension and Efforts to Maintain High Growth in 2020
Incident From December 19 to December 31, 2019, the company issued three announcements of important contracts for daily operations, with a total contract value exceeding 500 million yuan.  Commenting on the record high performance in 2019, the final new growth single-year 2020 high-growth foundation in the first three quarters of 2019, the company achieved operating income of 10.580,000 yuan, an increase of 107 in ten years.76%; net profit attributable to mothers2.350,000 yuan, an increase of 142 in ten years.29%, revenue and profit hit a record high.  The company expects to achieve net profit attributable to mothers in 2019.9.8 billion -2.6.4 billion, an annual increase of 50% -100%.Since the expiration of Handan Mechanical and Electrical’s performance commitment period involves the accrual of excess award amounts, it will bring about an increase in the cost of the breakthrough amount. Handan Mechanical and Electrical’s 2015-2019 performance commitments totaled 2.1.6 billion, 40% of the excess is used as a performance reward, and Handan Electromechanical has completed 2 from 2015 to 2018.With a net profit of 8.7 billion, assuming Handan ‘s net profit is 80 million this year, a total of 60 million expenses will need to be accrued this year as performance rewards. After excluding Handan ‘s performance rewards, the company ‘s net profit attributable to mothers in 2019 will be about 2.5.8 billion-3.2.4 billion, an increase of 95% to 145% in ten years.  From December 19, 2019 to December 31, 2019, the company issued three announcements of important contracts for daily operations, with a total contract value exceeding 500 million yuan.Among them, some products are the first batch of new stereotyped military products, and some products are the first release of the company’s traditional advantage model products in the new military field. The two types of new business involve contract amounts exceeding 2.9 trillion; in addition, there are nearly 2.The 200 million contract is a follow-up contract to the first batch of contracts in April 2019, with an increase in contract value of nearly $ 100 million.We expect that the company’s infrared-related business in 2019 will continue and maintain a certain growth in 2020, and the nearly $ 400 million new product contract will be the basis for the company’s high growth in 2020.  A certain type of weapon system is expected to begin mass production this year. Our army and the military trade market have ample space. The company is the first private enterprise in China to obtain the overall qualification of a complete weapon system. It has officially undertaken the development of a certain type of weapon system and actively participated in a number ofPre-research and bidding for the complete weapon system of the new system.In 2014, the company obtained the “Registration Certificate for Weapon Equipment Manufacturing Unit” and “Warm Equipment Research and Production License” issued by the General Equipment Department of the Chinese People’s Liberation Army and the National Defense Science and Technology Administration respectively after the addition of the license.The overall development qualification of the new complete weapon system breaks through the history of the overall parts and components matching of the previous private enterprises in the field of weapon equipment research and production, making the company the first private enterprise to enter the field of complete weapon system development.  The company successfully acquired Handan Electromechanical in 2015, and the business field was successfully extended to the field of pyrotechnics, which helps the company to make full use of its mature management experience and talents, qualifications and other advantages in the field of scientific research and production of pyrotechnic products to make overall plans for the production of pyrotechnic productsActively develop a series of precision guided weapon systems to achieve mass production of a certain type of weapon system as soon as possible.  In 2016, the company won the overall bid for a certain type of weapon system, obtained the overall development task of the weapon system issued by the Army Equipment Department, and officially undertook the overall development task of the national complete weapon system.In the same year, the company obtained approval for a series of complete arms system products for military trade export, and vigorously promoted arms system products for military trade exports and domestic batch production.After years of development and testing, an army weapon system is expected to be mass-produced in 2020. This product has a broad market space in our army, military trade and other fields.  High-end infrared chips continue to break through and break through the high-end core devices in the infrared industry. The company has become the only company in China that successfully built three batches of detector chip production lines. It has achieved a high-volume production capacity of “China’s infrared core” with completely independent intellectual property rights., Becoming the most complete infrared thermal imaging detector chip and application solution supplier in China.  In 2019, the company’s 1280 × 1024 @ 12μm large area array uncooled infrared detector has completed the finalization work in the report. It will soon enter the small batch production stage and will be the main force for special applications such as high-end military and high-end civil applications in the future.The company’s high-end mercury-tellurium medium-wave refrigeration type 1280 × 1024 @ 12μm large area array infrared detector project has passed the technical achievement appraisal and represents the highest level of domestic refrigeration infrared detector chips.  Wafer-level packaging production line for batch production and supply. The downstream civilian product market expanded and developed. The company completed the construction of the first domestic non-refrigerated wafer-level packaging production line, and realized the batch production and supply of some products based on this. The product line has covered the high, middle, and low end.To meet the needs of various customers.With the mass production of the company’s wafer-level packaged detectors, packaging efficiency will be greatly improved, device costs will be effectively reduced, and the civilian product market will expand the scale of more application scenarios through cost reduction.  The company’s subsidiary, Zhigan Technology, optimized the production supply chain, improved 武汉夜网论坛 production capacity and efficiency, and achieved rapid growth in sales performance. The number of products produced and shipped in the first half of the year exceeded the total in 2018.In the field of consumer electronics, the company officially released MobIRAir, an infrared thermal imaging mobile phone accessory, on April 22, adopting a self-developed 120 × 90 @ 17μm wafer-level packaged detector by Gaode, which is the first wafer-level packaged detector to be launched after mass production.This consumer-grade product is the first first-line manufacturer’s mobile phone thermal imaging plug-in with a price of about 1,000 yuan. At the same time, the company has also obtained in many markets such as outdoor hunting, industrial online temperature measurement, inspection and quarantine, and smart home.Important breakthrough.  Earnings forecast and investment grade: concentrated growth in military contracts, performance is expected to maintain rapid growth, maintaining the “overweight” rating company’s infrared core device advantage expansion, military products tasks maintain rapid growth; the company expands the entire industrial chain based on infrared detection weapons and equipment, a certain weaponSystem batch production is imminent, and the volume is expected to continue in the next two years; the company is vigorously promoting the application of infrared detection technology in the new civilian field, and has already been applied in many fields, which is expected to become the company’s new profit growth point.It is estimated that the company’s net profit attributable to mother from 2019 to 2021 will be 2.31, 5.35, 6.72 ppm, an increase of 75 per year.09%, 131.54%, 25.50%, corresponding to 19 to 21 years of EPS are 0.25, 0.57, 0.72 yuan, corresponding to the current expected PE is 89, 38, 30 times, maintaining the “overweight” level.