Torch Electronics (603678) 2019 Semi-annual Report Review: High-speed Growth in Military Revenue and New Product Market Expand

Torch Electronics (603678) 2019 Semi-annual Report Review: High-speed Growth in Military Revenue and New Product Market Expand

Investment Highlights The company announced its semi-annual report for 2019: the company achieved operating income10.

61 ppm, an increase of 12 in ten years.

70%; realized operating profit 2.

63 ppm, an increase of 22 in ten years.杭州夜网论坛

42%; net profit attributable to mothers2.

13 ppm, an increase of 21 per year.

22%; net profit after deduction to mother 2.

10,000 yuan, an increase of 25 in ten years.

72%; net cash flow from operating activities was 86.41 million, an annual increase of 86.

44%; estimated average return on net assets is 7.

40%, increasing by 0 every year.

67 units.

The company’s self-produced business realized operating income3.

0.94 million yuan, an increase of 38 in ten years.

59%, accounting for 37% of total operating income.

11%, an increase of 6 per year.

93 units; agency business achieved operating income6.

62 ppm, an increase of 0 in ten years.

81%, accounting for 62% of total operating income.

39%, a decline of 7 per year.

36 units.

In the self-produced business, the income of military products2深圳桑拿网.

71 ppm, an increase of 49 in ten years.

59%, income from civilian products1.

23 ppm, an increase of 19 in ten years.


The growth rate of military product income is higher, mainly driven by multiple factors such as the acceleration of national defense informatization construction, non-main battle equipment compensation procurement and the acceleration of domestic substitution of electronic components.

In the first half of 2019, the company’s net profit margin was 20.

50% increase by 1 each year.

There are 82 single ones. The first is the increase in comprehensive gross profit margin and the decrease in expenses during the period.

The company’s comprehensive gross profit margin is 37.

52%, an increase of 1 each year.

The 85 averages are firstly the increase in gross margin of self-produced business; the second is the increase in the proportion of revenue of self-produced business with high gross margin.

The company’s self-produced business gross margin was 71.

59%, increasing by 0 every year.

79 units, gross margin of agency business 18.

15%, down 2 every year.

42 averages.In the past three years, the company’s comprehensive gross profit margin and net profit margin have shown an overall upward trend.

The self-produced business is the company’s core business, and the revenue growth rate is relatively high. In fact, the ceramic capacitor business with a relatively high revenue share maintains a high level of growth, and ceramic capacitors achieve operating income3.

26 ppm, an increase of 31 in ten years.

46%; Second, the company continued to strengthen the development of new products in its self-produced business. The growth of new products such as thin-film components, single-layer capacitors, and interconnect capacitors and ceramic materials also maintained steady growth.

In 2018, the company acquired Guangzhou Tianji to achieve complementary advantages and formed a good synergy effect.

The company’s new product business continued to grow, which strongly promoted the company’s self-produced business to continue to grow rapidly.

We adjust our profit forecast and expect the company’s net profit attributable to its parent to be 4 in 2019-2021.



40,000 yuan, EPS is 0.



55 yuan, corresponding to the closing price of PE on August 9 is 24/19/15 times, maintaining the level of “prudent increase”.

Risk Warning: The expansion of self-produced new products is less than expected, the procurement of military products is less than expected, the gross margin of the agency business is shifted, and the development of new material product applications is less than expected