China Airlines photoelectric difficult to continue high send to military orders stability 40% gross margin worry-free

Even in an ordinary household car, it probably requires 80-120 electrical connectors. As the most basic component of electronic manufacturing, the technical content of connectors is not high. At present, domestic manufacturers of connectors, up to more than 1000.　　According to China Electronic Components Industry Association Information Center Forecast data, 2010 annual industry production of various types of connectors will reach 46.8 billion. However, the number of manufacturers with military standard electronic components, such as AVIC (002179.SZ), is rare.　　As the largest military connector manufacturing enterprises, AVIC photoelectric by virtue of the annual stable growth of military orders, can guarantee that the product has a 40% gross profit margin; however, the company's annual increase in military orders on the stability, but also makes it almost difficult for the company in the performance of the ultra-expected growth.　　As the military has not yet seen the super expectations, so for the company's upcoming 2010-year results, market analysts think it will still be more stable.　　Back to the tree good shade every year from the military orders, for the performance of the aerospace photoelectric contribution is enormous. A military industry analyst in an interview, said, compared to the industry many of the same type of product manufacturers, AVIC photoelectric the most important competitive advantage is the company relies on the China Aviation Industry Group Corporation. As a professional connector manufacturer of AVIC industry, the company not only has a stable production and marketing relationship in military products, but also becomes the largest military connector manufacturer in China. "The income of the company from the military industry accounted for about 50%."　　"And according to the China Aerospace Optoelectronics 2007 IPO Prospectus Disclosure, the company is the core of Costind enterprises, navy weapons equipment units, Air Force units. "At present, the company in the aerospace, weapons market share of about 20%, in the industry although not to say is a monopoly, but still have absolute competitive advantage."　　The analyst said. According to the results of the release of China Aviation Optoelectronics, the company's average gross margin of the connector increased markedly during 2010, from 32.82% in the end of 2009 to 36.27% in the middle of 2010, and in the third quarter, with the rise in the proportion of military products, the gross margin rose to 36.41%, Rose 5.54% Year-on-year.　　Among them, in the company's leading product electrical connectors, the single product gross profit margin also from the same period of 37.7% to increase to 39.7%.　　Three years to rebuild one's own relative to military products, civilian market has a broader market space, but for AVIC photoelectric, want to from the competition white-hot market of the civilian products to share a cup of soup, still have to go through a long period of development. In order to improve the company's competitiveness in the civilian market, as early as August 2009, the company plans to use its own funds in Luoyang high-tech zone to build a photoelectric technology industry base project, April 2010, the project began to officially start construction. According to the investment plan previously disclosed by the company, the total investment of this project is 5.4.6 billion yuan, based on the 3-year construction cycle, will be put into production by the end of 2012.　　By then, the new project will add 1.525 billion yuan a year to the company's income, of which the profit of 263 million yuan.　　And if compared with the company in 2009 to obtain 1.2 billion yuan operating income and 130 million yuan operating profit, this new project is undoubtedly equivalent to the construction of a newly-Avic optoelectronics. "At present, the company's progress on this project is very smooth, it is expected to be able to complete the project by the end of the infrastructure project."　　"said the staff of the company Dong-ban.　　For the new project, market analysts in an interview with reporters, because the project before the investment, the capital market has been digested, as the end of next year, whether the project will be able to maintain the company's previous 17% profit margin, it depends on the next year's downstream market boom.　　High send turn difficult this year because of the company in the market for civilian products, and the continued stability of military orders, so that China aerospace photoelectric for its own performance growth full of self-confidence. Reporter noted that since the company's listing at the end of 2007, from the beginning of 2008, for three consecutive years have been a high transfer, and in the Provident Fund to increase the equity program, but also consistent "10 send 2 to increase 3" plus 0.5 yuan to 1 yuan unequal dividend.　　So, based on the performance of 2010 years, whether the company will be on schedule to carry out the high transfer this year?　　In this regard, the company director of the secret office said that, as the current annual report issued in the early stage, the company's position is inconvenient. And the reporter in the review of the Sino-Aviation photoelectric years notice that the company from 2007 to 2009 three years of the distribution of the unallocated profit of 0.69 yuan, 0.85 yuan and 0.71 yuan, and each share of Provident Fund is 4.29 Yuan, 2.53 yuan and 1.5 yuan respectively.　　And as of last year released three seasons, the company on the book of the unallocated profit and each share of Provident Fund is 0.56 Yuan and 0.81 yuan respectively. It is clear that the per-Share Provident fund that can be transferred to the company has been reduced over the year.　　The company's net profit growth in 2010 will be less than 30% per cent, according to a forecast by China Aerospace in the three quarterly reports. "The company is still expected to continue to launch the Shang program this year for the projects it has been implementing over the years, but given the current status of the company, the distribution may be lower than in previous years," he said.　　The analyst said in an interview with reporters. Company Profile December 25, 2010, the launch of a geostationary satellite launch vehicle in India, in less than a minute after the launch of the collapse in the air, eventually led to the failure of India's space launch.　　After the initial analysis of the Group of Experts, the reason for the failure of the rocket was the accidental break of 10 connectors in the rocket. In fact, as the most basic components of the electronic system, in the connector Terminal application area, the largest demand is the automotive industry, relatively speaking, military aerospace applications in the field is not very high. However, due to the demand for connectors in the Military aerospace field,Product, durability, precision, seismic, anti-interference and other aspects of the standard requirements are very high.　　Therefore, as early as in 1999, the Costind Group of experts had a domestic electric connector manufacturers conducted a comprehensive investigation, and finally only selected 9 as the core backbone enterprises, and AVIC Optoelectronics is one of them. Avic Optoelectronics in the military industry is called the 158 plant, is the largest domestic scale, can also have light, electricity, cable components connector product development and production capacity of leading enterprises.　　AVIC Photoelectric XC round electric connector National military standard production line, rectangular electric connector national military standard production line, optical fiber cable connector National military standard production line and environment-resistant high-density circular electric connector national Army standard production line, have passed the acceptance of the general Equipment department. Behind the scenes to pay off the top 25% institutions 58 million of all quilt cover in the second half of 2010, when the aerospace military sector appeared a strong trend of the time, AVIC photoelectric share price almost doubled, once from July 5, 2010 the lowest price of 10.45 yuan/stock up to November 2 of the highest price of 24.59 yuan/share　　, up to 135%.　　However, not all institutions in China Aerospace's circulating shareholders are able to seize the opportunity to profit from it. As of June 30, 2010, the proportion of the fund's holdings has slipped from 18.16% in the first quarter to 15.98%, including King Shun Great Wall Ding Yi, Southern excellent growth and long Shengtong theme growth of three funds, are invariably in two quarters retreat instead Ta Kong. On the contrary, it is precisely this time, the Chinese fund under the steady growth of the 4.24 million shares of the discerning to buy, profitable. Into the three quarter, with the company's share price rose, many funds to choose to reduce the cash.　　Among them, add rich balanced growth, on the investment Morgan Alpha and China steady growth of three funds total reduction of nearly 2.7 million shares. However, the November 2 China Aerospace photoelectric hit the highest point of this round of gains, once again, institutional investors buy high. According to Billboard data shows that on October 29 on the same day, the agency seats to buy 11.33 million yuan, on November 3, and three more institutions have bought 46.72 million yuan, two trading days institutions accumulated more than 58 million yuan buy.　　Since November 2, when the share price hit the peak, the stock has been all the way down, by the end of the year, the institutions bought the shares on the book loss of nearly 25%. China's active fighter jet leopard flying leopard fighter is the 70 's China began its own design and development of All-weather multi-purpose fighter bombers, by the XI ' an aircraft manufacturing company, Xi ' an Aircraft design institute jointly developed. The aircraft is mainly equipped with naval aviation, is the PLA combat aircraft dazzling star, early known as 7. At present, the retrofit of the machine has a all-weather precision of the -7a attack capability, and with the PLA in recent years to its continuous improvement, a variety of models of the Flying Leopard variant is also constantly appearing, greatly enhance the effectiveness of the flying leopard.