Kaile Technology (600260): Establishing emergency communications subsidiary
An emergency communications subsidiary was established, and the large communications layout was further expanded.
The company announced that it will jointly invest 100 million US dollars with its wholly-owned subsidiary Kaile Quantum to establish a wholly-owned subsidiary Kaile Emergency Information, mainly for military emergency communications technology, R & D and sales of emergency communications equipment.
It is beneficial for the company to develop the emergency communications market in rail transportation, aerospace, automotive and other fields. The company’s large communications industry layout is further expanded and it is expected to bring new growth points.
Win the bid for China Unicom project and actively expand the business of telecom operators.
The company announced on August 10 that its wholly-owned subsidiaries Shenzhen Fanzhuo and Shanghai Fanzhuo won the bids for the Unicom terminal project and the Unicom platform project, respectively.
The successful bidding will help the company to further deepen its cooperation with operators, seize the high-end market of public network intercom, and increase the company’s market share of digital communication products.
The optimization of the private network communication structure has steadily increased, and quantum confidential communication is expected to become a new growth point.
In the private network communication business, the company stopped the supplementary processing business with incremental gross profit margins. The multi-transport production and manufacturing orders with higher gross profit margins increased steadily, and accelerated the deployment of independent sales of independent networks + private networks.It seems that the scale of revenue is affected, but the gross profit margin will continue to increase, supporting the company’s performance to grow steadily.
In terms of quantum secret communication, the company’s quantum secret communication products have achieved mass production, and at the same time, related product orders are expected to become the company’s new performance growth point.
Earnings forecast and investment recommendations The company’s net 杭州桑拿 profit attributable to its mother in 19-21 is 11.
55 ppm, corresponding to 13/10/8 times the current sustainable PE.
The company focuses on the layout of the large telecommunications industry, actively expands new business areas, is optimistic about the company’s private network business prospects, and increases the gross profit margin brought by the increase in multi-direct product revenue. Quantum confidential communications products begin to contribute performance. Changes in the payment methods for raw material procurement will improve the company’s cash flow.
Considering that the company’s private network product structure adjustment is expected to be completed in 20 years, while considering the forecast of comparable companies, the company will be given 17xPE for 20 years, corresponding to a reasonable 杭州桑拿养生会所 value of 23.
63 yuan / share, maintain the company’s “Buy” rating.
Risk warning: Military orders and delivery cycles are uncertain; changes in the structure of private network orders lead to changes in gross profit margins; and the progress of national and local quantum secret communication network construction is beyond expectations.