China Satellite (600118): Gross profit is basically flat, expenses are well controlled and profit growth is achieved

China Satellite (600118): Gross profit is basically flat, expenses are well controlled and profit growth is achieved

On August 23, the company released a semi-annual report, and realized operating income of 31 in the first half of 2019.

3.9 billion, down 2 previously.

24%; net profit attributable to mothers1.

8.9 billion, an annual increase of 5.

06%.

Comment On August 23, the company released its semi-annual report, and realized operating income of 31 in the first half of 2019.

3.9 billion, down 2 previously.

24%; net profit attributable to mothers1.

8.9 billion, an annual increase of 5.

06%.

The reason for the slight increase in the company’s revenue and the slight increase in profits is that: Firstly, the reporting expenses such as office expenses and house leasing expenses decreased, resulting in a decrease in management expenses6.

49%; Second, the company’s average daily deposits were higher than the same period of the previous year, and the increase in the corresponding index income led to a decrease in financial expenses31.

6%.

On the whole, the company’s expenses are well controlled and a small increase in profits has been achieved.

The company’s small satellite manufacturing field has been stable, and the satellite application business has continued to develop. The company’s satellite manufacturing business currently focuses on the development and production of small satellites and microsatellites below 1,000 kg, and has developed multiple small satellite platforms including CAST968, CAST2000, CAST3000 and CAST4000., Occupying the commanding heights in the field of small satellite development.

In the first half of the year, Catcher One A / B successfully completed its launch mission by launching for the first time at sea. The orbital operation was stable and in good condition. It was able to accurately measure sea surface wind field information at an altitude of 600 kilometers to achieve typhoon forecast.No. 1 and Ningxia No. 1 were successfully carried out in the research model, and nearly a hundred satellites in orbit steadily operated.

In the field of satellite applications, the company’s traditional businesses including vehicle / ship-borne “moving-in-pass” products, machines, on-board Beidou user equipment and terminal products have been completed and delivered as planned, and new services such as high-throughput satellite communication systems have been completed.As a whole, stable development has been achieved.

The restructuring of military scientific research institutes is being stepped up. The injection of high-quality institute resources of the fifth aerospace institute is worth looking forward to. The controlling shareholder of the company has sufficient high-quality scientific research institutes. In 2018, the academy’s net assets were 388.

5.8 billion, with total assets of 608.

9.3 billion, a net profit of 38 in 2018.

7.4 billion, several times the number of listed companies, each with more than a dozen research institutes, including the Beijing Spacecraft General Design Department, Beijing Control Engineering Research Institute, Beijing Space Electromechanical Research Institute, to replace high-quality assets.

The continuous advancement of the reform of military research institutes will remove institutional obstacles to the listing of research institute assets, and the injection of related assets is worth looking forward to.

Earnings forecast and investment rating: The performance has maintained steady growth, asset injections are worth looking forward to. The company that maintains the overweight rating is replaced in the domestic small satellite manufacturing field and also occupies an important position in the satellite application field. During the construction of the aerospace power, the company ‘s business will gainContinuous and rapid development; the company ‘s controlling shareholder, the No. 5 Academy of Aerospace 天津夜网 Science and Technology, has a long-term high-quality scientific research institute, and its overall net profit is several times that of the company. Satellite-related assets are injected into China Satellite.

It is expected that the company’s net profit attributable to mothers from 2019 to 2021 will be 4 respectively.

4.6 billion, 4.

9.3 billion, 5.

45 ppm, an increase of 6 per year.

71%, 10.

62%, 10.

64%, the corresponding 19 to 21 years EPS are 0.

38, 0.

42, 0.

46 yuan, corresponding to the current expected PE of 59, 53, 48 times, respectively, maintaining the level of increase.