Shuangchuang Electronics (600990): The transfer of stock rights has been approved by the group, and the role of the platform of the listed company is prominent

Shuangchuang Electronics (600990): The transfer of stock rights has been approved by the group, and the role of the platform of the listed company is prominent

Event: Recently, the company received the approval of China Electronics Technology Corporation on the transfer of the shares of Sitron Electronics for free, and agreed to transfer the 45 held by Sitron Electronics 45.

67% of the original shares were transferred to CLP Bowei for free.

Core point of view The transfer of equity was approved by China Electronics Technology Corporation, and the role of the listed company’s platform was prominent.

The senior leaders of Dianke Group continued to promote the sub-group construction and professional integration, and successively planned to establish communications, Bowei, Taijizi Group, etc.

The Boweizi Group was established in November 18, and it has 8 electric departments, 16 units, 38 units, and 43 units. It has strong technical strength and high-quality assets in the fields of radar, light, low temperature and integrated circuits.

The transfer of the original shares for free was approved by the Group, which is an important step for the company to formally become the listing platform of the Boweizi Group.

After the transfer of shares is completed, CLP Bowei will hold the company45.

With 67% equity, directly holding Shuangchuang Electronics, the scale of the company’s platform has been increased, and it is expected to become the focus of professional integration and industrialization development of the subgroup.

Focusing on the significant results of the main business, the gross profit margin of H1 2019 has improved.

In the early stage, the company focused on its main business, focused 深圳spa会所 on improving quality and efficiency, and achieved revenue 9 in the first half of the year.

980,000 yuan, a slight decline in ten years (-14.

98%), mainly due to the compression of the scale of non-autonomous products with poor competition, and the core radar business still maintained steady growth.

Revenue from the security electronics business, which has a large income volume and a large amount of funds, has slightly declined, but the gross profit margin has increased from 8 in 2017.

16% increased to 11 in 19H1.

11%.

Through the optimization of revenue structure and the enhancement of profitability of low-margin business, the company’s gross profit margin improved significantly, from 18H1 to 13.

78% increased to 16 in 19H1.

29%.

Expanding radar business horizontally, vertically and bidirectionally, the energy industry has made new breakthroughs.

As the company’s main business, the radar business continued to expand through horizontal and vertical expansion, and its proportion continued to increase.

Horizontal expansion: Meteorological radars have opened up new customers in the fields of war support, installation, water conservancy, colleges and universities. Air traffic radars have made breakthroughs in the air force and navy markets at the same time, becoming the main supplier of domestic military aviation radar.

Vertical extension: Committed to the transition from “radar equipment supplier” to “integrated system supplier”.

In terms of the smart industry, the company’s key projects have been advanced smoothly, and new breakthroughs have been achieved in the transition to system operators.

In the energy industry, the company, on the basis of consolidating the switching power supply business, focuses on developing wind power projects and strives to land them.

The financial forecast and investment recommendations take into account the company’s reduction in the scale of non-independent products, and we adjusted the company’s EPS for 19-20 to 1.

54/1.

81 yuan (previous forecast was 1.

78/2.

20 yuan), plus 21 years of EPS is 1.

99 yuan.

With reference to a comparable company’s 45-year P / E ratio in 19 years, a target price of 69 is given.

30 yuan, maintain “Buy” rating.

Risk reminder: Product orders fail to meet expectations; institutional reform and professional integration progress has not met expectations