Haige Communications (002465): High performance growth verifies military demand recovery, orders in hand overlap, consolidates high growth foundation

Haige Communications (002465): High performance growth verifies military demand 南京夜网 recovery, orders in hand overlap, consolidates high growth foundation

Report Highlights Event Description On April 19, 2019, the company released its 2018 annual report.

In 2018, the company achieved revenue of 40.

7 billion, an annual increase of 21.

41%, net profit attributable to mothers4.

30 ppm, an increase of 46 in ten years.


The event comment benefited from the recovery of military orders, and the company’s revenue and performance increased rapidly: Mainly due to the gradual recovery of military orders after the implementation of the military reform, the high growth in 2018 was in line with expectations.

The company’s quarterly revenue growth rate increased in 2018, and its performance maintained high growth. Among them, the growth rate of Q4’s revenue and net profit attributable to mothers were as high as 37 respectively.

23% and 50.


In terms of discrete business, the company’s revenue in wireless communications, Beidou navigation, aerospace, software and information services changed 38.

93%, 19.

15%, -30.

79%, 16.

68%, of which aerospace revenue is mainly affected by the extension of customer subscription plans; benefiting from the company’s expanded quantitative management efforts and resource intensiveness, the average cost of 2018 decreased significantly compared with 2017, driving the company’s performance growth faster than revenue growth25.

27 points.

In addition, due to the gradual implementation of the military reform, the return of orders improved, and the company’s operating cash flow increased by 257 in ten years.


The total number of orders in hand guarantees the company’s future performance growth: from June 2018 to the present, the company has gradually received an increase of approximately 1.5 billion US dollars in military orders, which is a significant increase from the total annual order of approximately 500 million US dollars in 2017.

The wholly-owned subsidiary Haige Yichuang has won bids of approximately 2.5 billion US dollars since the beginning of 2018, of which the termination on April 18, 2019, Haige Yichuang’s 2019 harvest contract value has accumulated to about 1.5 billion US dollars.

We believe that the company has sufficient orders in hand to guarantee its growth in 2019.

In addition, after 5G construction and further recovery of military orders, the company’s orders are expected to continue to grow.

Beisan High-precision RF, baseband chips have been taped out, and independent research and development capabilities highlight: The construction of the Beidou III system has basically been completed, and global services have been provided since the end of 2018, entering the global era.

The company has laid out ahead of time for the industrial application of Beisan 3, developed the Beisan 3 high-precision radio frequency independently developed, and the baseband chip has been taped out and preliminary tests are good.

The successful development of the Beisan core chip marks that the company’s Beidou core technology has been further improved, thus laying the foundation for the expansion of Beidou’s global application market.

Earnings forecast and investment advice: Benefiting from the resumption of orders for the implementation of the military reform and the renewal of Beidou, the company’s 2018 revenue and performance resumed high growth.

The company’s existing military orders and software and information service business orders increase, benefiting from the 5G scale construction and further recovery of military orders, the company is expected to continue high growth in the next few years.

It is expected that the company’s net profit for 2019-2021 will be 5 respectively.

8 billion, 8.

5 billion and 11.

5.0 billion, the previous growth rate was 34.

88%, 46.

55% and 30.

00%, corresponding to estimates of 41 times, 28 times and 21 times, maintain “Buy” rating.

Risk Warning: 1.

Military orders recovered less than expected; 2.

The expansion of the civilian market was less than expected.