Honghe Technology (002955): 19H1 income +11.7% to 2 billion lawsuit settlements eliminate short-term repression

Honghe Technology (002955): 19H1 income +11.7% to 2 billion lawsuit settlements eliminate short-term repression
Revenue increases by 11 every year.67%, net profit attributable to mother increased by 6.58%. The company released a semi-annual report on August 15th, achieving revenue of 20 in 19H1.25 ppm, an increase of 11 years.67% (19Q1, 19Q2 exceeded the growth rate of 6 respectively.48%, 14.08%); realizing net profit attributable to mother 1.13 ppm, a six-year increase of 6.58% (19Q1, 19Q2 exceeded the growth rate were -10.16%, 10.47%); net profit after deduction is 0.93 ppm, a ten-year increase6.73%.The EPS is 1.04 yuan.The reason for the increase in performance in this period is that market demand has increased steadily, business growth has increased, and operating income has increased. Settlement with CV Sources Litigation. On August 14, the company announced that during the company’s IPO, the company received the Civil Appeal Notice and 深圳桑拿网 4 related patent disputes related to the five internal lawsuits filed by CV Sources.”Civil Action”, the court has not yet heard the above five lawsuits on the date of the previous announcement. In April 19, the State Intellectual Property Office conducted an oral trial on the invalidation request of the four patents involved. In July 19, the company received a notice from the Guangzhou Intellectual Property Court, which led to a trial in September 19 in this case. On August 12th, the Company has settled the “Reconciliation Agreement” with CV Sources through friendly negotiation. CV Sources shall sue against the intellectual property rights of the company and its affiliated companies outside all territories. Honghe Air Force’s filing of an IPO will reflect its adherence to innovation-driven, technology-led development strategies and the competition strategies of its own brands. Maintain profit forecast and give Buy rating. Since 2000, the company has cultivated “Honghe Hitevision” brand products, mastering key technologies in the industry, huge market sales channels, and market share in domestic market share.The company has been cultivating the international brand “Newline” since 2012, actively participating in international competition, and gradually increasing its overseas market share, which has become a force for international competition.We expect 2019-2020 net profit to be 4.09 billion, 4.8.7 billion, PE is 19x, 16x. Risk reminder: the penetration of education interactive big screen increases, sales growth rate declines, and the risk of core talent loss