The performance was in line with expectations, with explosive growth in revenue and profits, ranking first in the industry.
The company released its 2019 results on the evening of February 28, KuaiBao, with a total operating income of 2.86 billion yuan (373.48%) and a net profit of 881 million yuan (3971.65%). 2019Q4 achieved revenue of 1.609 billion yuan (+ 504%) and net profit of 494 million yuan (+ 1947%) in a single quarter. The company's performance is in line with expectations, in the middle of the performance forecast range, ETC-related business revenue and profit level is higher than other companies in the same industry. The main reason for the explosive growth of the company's performance is that the state has vigorously promoted the cancellation of the national highway provincial boundary toll station project, and promoted the popularization and application of ETC electronic tags, and the market demand for ETC-related equipment such as roadside antennas and electronic tags has increased significantly compared with the same period last year. In addition, government subsidies increased sharply compared with the same period last year.
In 2019, the ETC task was overfulfilled, and the future ETC market led to a sustained boom in the construction and promotion of ETC in 2019, which led to a substantial increase in the demand for ETC products such as OBU and RSU equipment. Looking to the future, the company, as the leader of the ETC industry, is expected to achieve sustained prosperity in incremental scenarios such as high-speed RSU densification, parking fees, gas station charges, passenger car front loading and so on.
The landing of the vehicle-road coordination policy is accelerated, and the company is expected to make a deep profit.
On February 24, 11 ministries and commissions jointly issued the "Intelligent vehicle Innovation and Development Strategy", which further accelerated the trend of vehicle networking construction, and the outbreak of the vehicle networking market became a deterministic opportunity. As the leader of the intelligent vehicle-road collaborative technology and equipment industry research center, the company participates in and guides the formulation of industry standards, and has a solid cooperative relationship with upstream and downstream enterprises of the industry. at present, the company's V2X products have been deployed in national demonstration zones and urban open roads. with the full start of V2X construction, the company is expected to achieve in-depth benefits.
Risk hints: the epidemic situation has an impact on the company's delivery and acceptance; downstream V2X and other construction investment may not be as fast as expected.
Investment advice: raise earnings forecasts and maintain "overweight" ratings.
According to the situation of KuaiBao, we raised the profit forecast for 2019-2021. The net profit of homing in 2019-2021 was raised from 306 yuan to 1.10 billion yuan in 881, which was 3967% higher than the same period last year, diluted by EPS=7.48/8.93/9.42 yuan, and maintained the "overweight" rating.