The performance for the whole year has increased significantly. The company released its annual report in 2019, with annual revenue of 3.351 billion yuan, an increase of 384.10% over the same period last year. The net profit of returning to the mother was 872 million yuan, an increase of 132 times over the same period last year. The profit distribution plan is to pay out 16 yuan (including tax) for every 10 shares converted to 8 shares.
Profitability and cash flow levels have reached a new level. 1) on the cost side, thanks to the substantial increase in ETC RSU revenue compared with 2018, the proportion of revenue increased significantly, which led to an increase in the company's overall gross profit margin (11.16pct) compared with the same period last year. 2) in terms of expenses, sales expenses increased by 83.83% compared with the same period last year, management expenses increased by 111.66%, and R & D expenses increased by 70.73%.
3) in terms of cash flow, the net operating cash flow reached 471 million yuan for the whole year, the best level in history.
ETC harvest fruit + intelligent network couplet forward-looking layout peer. Benefiting from the comprehensive promotion of the cancellation of provincial toll stations on highways across the country, and the transportation department vigorously promoting the popularization of ETC construction, the company's ETC OBU shipments increased significantly over the same period last year, while RSU products gradually began to complete project construction and acceptance delivery in the second half of the year, leading to a substantial increase in overall ETC business revenue over the same period last year. Sub-plate point of view, 1) ETC business income of 3.018 billion yuan, of which OBU sales volume of 2863 million, RSU sales volume of 33945 sets. At the same time, according to the planning of the Ministry of Communications, the National Development and Reform Commission and the Ministry of Industry and Information Technology, we have continuously increased investment in research and testing of front-mounted ETC equipment, actively led the formulation of relevant standards, and provided high-quality products to automobile mainframe factories to make full preparations for the launch of the ETC market before 2020. With the popularity of ETC, the future application scenarios will be extended to cities, such as parking payment, automatic refueling payment, auto finance, maintenance and other payment scenarios. The company is seeking to work with partners to develop these types of markets. 2) the dynamic weighing business has achieved an income of 285 million yuan, and the company has actively promoted the market work of big data platforms such as the off-site law enforcement detection system for overload governance of freight vehicles and the national overload management information system, communicate with key provinces on the implementation details of the comprehensive solution for overload management, and expand more application scenarios of big data platform. 3) in terms of intelligent networking business, the company cooperated with Dongfeng Automobile to realize the road safety application scene through V2X on the Seventh CISM World Games, fusing early warning information, location information and 3D high-precision map into the vehicle integrated information system and displaying it through the central control screen, realizing a complete closed-loop demonstration of "car-road-cloud" for the first time, and formed a team with BAIC, Guangzhou Automobile and Chery to participate in the LTE-V2X safety demonstration and verification activities. At the same time, the Yutong driverless bus equipped with the company's 8-line lidar was unveiled at the Boao Forum for Asia, and the Dongfeng Pure Electric driverless bus equipped with the 8-line 3D lidar was unveiled at the Shanghai Auto Show.
Investment advice: in the short term, following the outbreak of the ETC OBU market last year, the RSU business will contribute significant performance in 2020. In the medium term, the market potential of the company's post-ETC application is huge; after the Wuxi 312 accident, the national out-of-limit management is strict, and the weighing business is expected to achieve high growth.
In the long run, the 5G V2X vehicle network relay, the market space is broad, the company intelligent network connection base station, lidar layout leading. It is estimated that the company's income from 2020 to 2021 is 5.789 billion yuan and 7.294 billion yuan respectively, and the return net profit is 1.043 billion yuan and 1.431 billion yuan respectively. The corresponding EPS is 9.48yuan and 13.01yuan respectively, and the corresponding PE is 8 times and 6 times respectively.
Risk hints: uncertainty of 5G-V2X technical solutions and applications; high collaborative complexity of the industrial chain; pressure on the supply of the industrial chain caused by the outbreak of demand; and intensified market competition.
