I. Overview of events
The company recently announced that Clearing Control Venture Capital intends to transfer its 43459615 shares in the company through public solicitation and transfer, accounting for 18.68% of the company's total share capital. The price of this publicly solicited transfer is not lower than the arithmetic average of the daily weighted average price for the 30 trading days prior to the suggestive announcement and the higher of the company's audited net asset value per share in the most recent fiscal year. The public solicitation and transfer needs to be approved by the competent institutions such as the supervision and administration department of state-owned assets.
II. Analysis and judgment
New shareholders are expected to inject new momentum, and the transformation of scientific research achievements will continue to promote the transfer of public solicitation and transfer accounting for 18.68% of the company's total share capital. Public solicitation and transfer is mainly in accordance with the relevant arrangements of the Central Committee for comprehensively deepening Reform Commission's "guiding opinions on Enterprise system Reform of institutions of higher Learning". If, after the successful transfer, Tsinghua Holdings still directly holds about 8.16% of the shares of the company and is still the third largest shareholder of the company, the company will continue to promote scientific research cooperation with Tsinghua University and actively carry out the transformation of scientific research achievements. At the same time, the management team of the company holds equity in the company through asset management and employee stock ownership plan, and there is no substantial change in operation and management.
Q3 quarter results are eye-catching, and the performance inflection point has been revealed.
The company achieved 509 million yuan in revenue in the third quarter, an increase of 145.52% over the same period last year, and its net profit was 90.76 million yuan, an increase of 244.27% over the same period last year. With the confirmation of project revenue in the third quarter, the company is expected to usher in a performance inflection point. Recently, the company won the bid for the "Foshan Phase I Project of Wisdom and Security" worth 220 million yuan. At present, the company still has a large number of unrecognized projects, and the high prosperity of orders and revenue recognition are expected to further improve future performance.
The advantages of the leading enterprises in the emergency platform are solid, the city lifeline business continues to promote the company to seize the policy dividend, and the government and industry emergency platforms have won new orders in many provinces such as Heilongjiang, Hubei and Yunnan. at the same time, the emergency platform at the prefecture, city, district and county level continues to expand, and with the successful operation of the Hefei project, the company has successfully replicated in Xuzhou, Huaibei, Wuhan, Foshan and other places. We believe that under the pressure of the policy of "opinions on promoting Urban Safety Development" and the frequent occurrence of urban accidents, the rigid demand for urban safety construction is strong, and there is a broad space for growth in the future.
III. Investment suggestions
As the leader of the emergency platform, the company's revenue in the third quarter is confirmed to usher in a performance inflection point. Considering that the company still has a large number of projects on hand, we expect the company's 19-21 net profit to be 2.17 million and 1.33 EPS respectively. The corresponding current price PE is 43-30-23, which is 50 times lower than the average PE of 19 wind software companies. We maintain the "recommended" rating.
Fourth, risk tips:
The transferee of this open solicitation transfer is uncertain, and the order verification is not as expected.
