Qi Xingchen (002439) 2018 Annual Report Comments: Waiting for insurance to be autonomous and controllable has not yet been reflected in expectations

This report reads: 2018 performance is in line with expectations, and there are many positive factors in the industry size in 2019, including policies, industry competition patterns, business model layout, and autonomous and controllable markets that may bring surprises, which deserves special attention.

　　Investment Highlights: Maintain Overweight rating.

Taking into account the incremental market brought by the policy, expanding the improvement of the competitive landscape and the independent controllable market space, the EPS for 2019-2021 is raised to 0.

81 (+0.

02) / 1.

11 (+0.

01) / 1.

42 yuan.

Taking into account the top of the company and the combination of multiple positive 杭州桑拿 factors, a certain estimated premium is given, 45 times PE in 2019, and the target price is raised to 36.

45 (+10.

45 yuan.

　　2018 performance was in line with expectations; the company’s 2018 revenue was 25.

2 billion, an increase of 10 in ten years.

68%, net profit attributable to the parent company5.

6.9 billion, an increase of 25 in ten years.

9%; deduct non-net profit 4.

3.6 billion, an increase of 35 in ten years.

8%.

R & D expenses and sales expenses remain 21% and 24%, and there is no pressure on expenses.

In terms of revenue, the gateway is partly affected by lagging orders in individual industries and the low-price competition of Huawei and Huasan in the operator industry, thereby achieving growth. In 2019, orders in individual industries are expected to bring surprises.

　　Most positive signals in 杭州桑拿网 2019, the future development will exceed market expectations.

Policy side, waiting for insurance 2.

0 will be implemented, and information security will be divided into the assessment scope of national enterprise leaders. In the industry competition pattern, three or sixty will rebrand, technology and data, and will be promoted to Qi’anxin operators.Reform, industry concentration and income certainty will be improved.

　　Autonomous controllability deserves special attention.

In 2019, Qiming released three domestically produced products. The first batch of autonomous and controllable products was targeted at server terminals and office use. The finalists for network security have not been disclosed. The current potential is large.A considerable share will be obtained.

　　Risk reminder: orders in individual industries continue to lag, and personnel costs rise