This report is read as follows:
The company's business structure adjustment has achieved results, and operating efficiency and profitability have improved significantly; under the company's innovation industry-university-research model, strong power barriers have been strengthened, consolidating the leading position of private communications planning, and the performance is expected to usher in an upward inflection point from 19 to 20.
Main points of investment:
Maintain the "overweight" rating. In 2019, H1 achieved revenue of 255 million yuan and net profit of 73 million yuan, down 60.17% and 29.21% from the same period last year. The company maintained a forecast of net profit of 3.50,4.46 and 576 million yuan for 19-21 years, and an EPS forecast of 0.35,0.44,0.57 yuan. It maintained 40 times the 19-year valuation, maintained the target price of 13.98 yuan, and maintained the "overweight" rating.
The pain of structural adjustment has passed, and profitability and operating efficiency continue to rise. After the divestiture of non-strategic and low gross profit business since 18 years, revenue and profit have declined, Q2 quarter revenue and net profit have slowed down, net profit has increased for two consecutive quarters, gross profit margin and net profit have reached a five-year high, leading the industry; under efficiency improvement and cost control, the company's cost level has dropped to a new low in the same period of 5 years, the capital structure is reasonable, and the financial position has become more robust.
The innovative industry-university-research model of "Silicon Valley + Stanford" and "Guomai Science and Technology + Fuzhou Institute of Technology" builds the core barrier and is full of motivation. Fuzhou Institute of Technology is not only the "internal stabilizer" of Guomai staff, but also provides R & D support for N businesses with the Internet of things as the strategic core, bringing good synergy; the industry-university-research model constructs the core barriers of talent, R & D and scene to support the company's strategic development, and also feeds the discipline construction of Fuzhou Science and Technology.
5G construction is expected to accelerate, performance ushered in an upward inflection point. Under the policy requirements and joint construction and sharing with Unicom Telecom, it is expected that the construction of 5G will be further accelerated. At present, the 19-year planned orders of operators have been gradually increased, and iron tower companies have joined the market to contribute additional increments. Planning and design is the core link in the early and middle stages of the industrial chain. As the leader of private communications planning and design, it is expected that revenue and profits will achieve peak growth along with 5G construction at the end of 2019 and usher in a real upward inflection point.
Risk hint: 5G investment is lower than expected; technology risk; business expansion risk