The company released its mid-2021 report. In the first half of 2021, the company achieved revenue of 206 million yuan, an increase of 27.56% over the same period last year, a net profit of 23.72 million yuan after deduction, a decrease of 37.08% over the same period last year, and a net cash flow of 8.77 million yuan from operating activities, down 85.73% from the same period last year.
Revenue is growing steadily and orders on hand are abundant. Revenue growth was mainly due to the expansion of the company's product line, increased marketing network coverage and increased market demand, while net profit declined. this is mainly due to the recognition of interest on convertible bonds, the settlement and payment of corporate income tax, the increase in chip purchase costs and labor costs. The company's newly signed orders in the first half of the year increased by 51% compared with the same period last year, of which the number of channels for 4K UHD products increased by 98%. In the first half of the year, the company's newly signed orders increased significantly, the product categories continued to enrich, the self-developed chips were progressing smoothly, the sales channels were further improved, and the increase in operating costs was mainly due to increased investment to ensure the company's sustainable development. the company will promote all kinds of work in an orderly manner in accordance with the established strategic objectives and constantly improve the company's operational efficiency.
Continuous R & D investment, product category expansion, high revenue growth of distributed products. In the first half of the year, the company invested 31.3 million yuan in R & D, accounting for 15% of operating income. The company has added 5 new patent applications, and a total of 49 patents have been authorized, including 22 invention patents. The company's product category continues to enrich, and distributed products have increased by 144% compared with the same period last year, making it one of the company's main products. In the future, the company will continue to increase R & D investment and comprehensively enhance the product dimension to serve users of integrated video application systems based on 5G communications, network security, "cloud" services, big data and AI intelligence.
Policies and demand promote the prosperity of the industry. With the landing of policies such as the 14th five-year Plan, "New Infrastructure" and Ultra HD Video Planning, there is a strong demand for national defense industry, government departments, emergency management, medical and health, big data Center, Smart City and other industries. Based on the industry's magnificent demeanor and the company's established strategic goals, the company will continue to increase the introduction of R & D and sales talents, further expand the company's product line and enhance the company's sales network coverage. Continuously improve the company's revenue scale and management quality.
Profit forecast. We estimate that the company's revenue from 2021 to 2023 is 6.27,8.16 and 1.06 billion yuan respectively, the net profit is 1.89,2.46 and 330 million yuan respectively, and the EPS is 1.01,1.32 yuan and 1.77 yuan per share respectively. With reference to the valuation of the comparable company and considering the valuation premium brought by the full autonomy of software and hardware, we give the dynamic PE25-30 times in 2021. The reasonable value range of the six-month stock price is 25.25-30.3 yuan, which is rated as "better than the big market".
Risk tips. The promotion of new products is not up to expectations, and the demand of the industry is declining.