Zhenhua Technology (000733): Reducing the burden and focusing on the core main business product system towards high-end

Zhenhua Technology (000733): Reducing the burden and focusing on the core main business product system towards high-end

Event: The company released its 2018 annual report. From January to December 2018, the company achieved operating income of 53.

3.8 billion, down 33 from the same period last year.

43%; Net profit attributable to shareholders of listed companies.

USD 5.9 billion, a year-on-year increase of 27.


Initial income is 0.

547 yuan, a year-on-year increase of 26.


The profit distribution plan is 0 for every 10 shares.

50 yuan (including tax).

Burden reduction focuses on core core businesses, and profitability has steadily improved.

In 2018, the company continued to clean up and dispose of “zombie” and inefficient enterprises, and completed the listing transfer of Zhenhua Tiantong. The parent company absorbed and merged the import and export companies. By expanding the size of the communications business, it further focused on military electronics.Core business.

According to the report baseline, the company’s operating costs decreased by 41 compared with the same period of the previous year.

41%, the comprehensive gross profit level reached 25.

14%, an increase of 10 over the same period last year.

20%, profitability has steadily improved.

In terms of products, operating income of the complete machine and system products23.

310,000 yuan, down 51 from the same period last year.

77%, accounting for 60% of total operating income.

29% dropped to 43.

68%; new electronic component products achieved operating income29.

7.6 billion, accounting for 39% of total operating income.

01% to 55.


We believe that with the continuous optimization of the transformation of the industrial structure, the company’s performance is expected to maintain stable and rapid growth.

The achievements in scientific and technological innovation are remarkable, and the product system is moving towards high-end.

In 2018, the company’s research and development grants2.

500 million US dollars, an increase of 6 over the same period last year.


The proportion of R & D funding 杭州夜网 in total operating income is 2.

95% increased to 4.

69%, R & D personnel increased by 28 people to 623 people.

According to the research report, the company has prepared an action plan for the next three years of scientific and technological innovation, and strengthened the construction of scientific research and technology positions; gradually applied for 271 patents and gradually owned 983 patents; the key research plan of the Ministry of Science and Technology, “Advanced Rail Transit”, in which the holding subsidiary participated”The project was approved”, the intelligent manufacturing improvement project is progressing as scheduled; IGBT chips and modules, high-power Schottky diodes, high-power rectifier diodes and other research and development breakthroughs have been made to promote the company’s product system to the 淡水桑拿网 high-end.

Profit forecast and investment grade: The company’s net profit for 2019-2021 is expected to be 3.

1 billion, 3.

7.2 billion, 4.

46 trillion, EPS is 0.
60 yuan, 0.
72 yuan, 0.

87 yuan, corresponding to PE is 26 times, 22 times, 18 times, given a “buy” rating.

Risk warning: Asset integration is worse than expected; competition in the military electronic component market is intensifying.