Key points of investment:
The Institute's core assets were injected, high growth development began, and the company's major asset restructuring has been completed, and development has entered a new stage. On the one hand, the business has expanded from railway vehicle inspection systems and intelligent equipment systems to the field of high-end electronics and special robots, and the business potential and development space have been greatly expanded; on the other hand, the injection targets are high-quality assets with strong profitability. The total promised performance in 2020 and 2021 was 106 million yuan and 124 million yuan respectively. In the context of a new round of infrastructure construction gaining momentum and the traditional main business ushered in new opportunities, the injection of high-growth target assets will enable the company to enter a new stage of rapid growth.
Aerospace equipment core package. Xuanyu Space benefits from the development of the aerospace industry. Xuanyu space products mainly include microsystems and control components, intelligent testing and simulation systems; microsystems and control components mainly include on-chip microprocessors, memories, inertial navigation sensors, motors, etc., which are the core components of spacecraft control systems, with high technical barriers and high value content; Xuanyu space products have the advantages of high integration, miniaturization, high reliability, etc., and are widely used in aerospace equipment, occupying a large market share. The test and simulation system is mainly used to provide simulation and testing methods for the development and debugging of complex equipment. It is an important supporting equipment for equipment development. Xuanyu space products have the characteristics of platformization, generalization, and miniaturization, and can provide simulation and testing for complex systems such as space control systems. On the one hand, aerospace is an important strategic industry. With technological progress and development, the number of space launches and spacecraft launches will continue to increase. The number of space launches in China is expected to exceed 40 in 2020, an increase of 18% over the previous year. On the other hand, microsystems and test simulation technology are important supporting technologies for high-end equipment and have a certain degree of scalability. While supporting space equipment, it is expected to expand horizontally in the future to develop more application fields.
Special robots have high barriers and high added value. Xuanyu Intelligence will grow rapidly. Xuanyu Intelligence's main products are special robots, specifically including emergency robots, sleep-walled robots, power robots, etc., which are mainly used in the nuclear industry and other fields. The nuclear industry environment has characteristics such as high temperatures, high radiation, and high corrosion. On the one hand, the harsh operating environment makes the demand for machines to replace humans more urgent, and robots will penetrate faster than ordinary industries; on the other hand, stricter performance and reliability requirements also make special robots have higher technical barriers and higher added value. Xuanyu Intelligence leads the industry in overall design, automated design, and localization of core components. With the serialized development of Xuanyu smart products, expansion of production capacity, and further exploration of customer needs and horizontal expansion in military, marine and other related fields, Xuanyu Space will achieve rapid growth.
Profit forecasting and investment ratings: After the restructuring of purchased and rated assets was completed, the company's business expanded from railway vehicle inspection and intelligent equipment to the field of high-end electronics and special robots, adding high-quality high-tech and high-growth businesses. In the context of traditional main businesses benefiting from a new round of infrastructure construction, the injection of high-growth target assets will enable the company to enter a new stage of rapid growth. Net profit attributable to the mother in 2019-2021 is estimated to be 143 million yuan, 228 million yuan, and 323 million yuan respectively. The corresponding EPS is 0.20 yuan, 0.32 yuan and 0.45 yuan respectively. Corresponding to the current stock price PE is 63 times, 40 times and 28 times, respectively. It is covered for the first time and given a purchase rating.
Risk warning: 1) space launch falls short of expectations; 2) demand for robots in the nuclear industry falls short of expectations; 3) company profits fall short of expectations; 4) systemic risk
