The company released its 2019 annual report, with operating income of 784 million yuan, an increase of 2.50% over the same period last year, and a net profit of 148 million yuan, an increase of 13.65% over the same period last year.
All kinds of business remained stable, and the investment in R & D increased. From the perspective of various businesses, the revenue of the financial business was 517 million yuan, up 7.39% from the same period last year; the income from the judicial business was 67 million yuan, down 2.87% from the same period last year; the income from the Ping an Judicial City business was 101 million yuan, down 26.51% from the same period last year; and 99 million yuan from other industries, an increase of 28.44% over the same period last year. The company's R & D investment was 69 million in 2019 and 48 million yuan in 2018, a substantial increase over the same period last year.
UWB service has the advantage of first mover. In the second half of 2019, Apple Inc launched UWB technology in iPhone11 mobile phone, which aroused the pursuit of UWB technology in the industry. Giants including Samsung, Sony Group Corp, NXP and Bosch joined hands to establish the FiRa Alliance. The company's UWB technology has been successfully landed in the field of judicial construction, and the application field is expected to continue to expand in the future.
Work with Huawei to create financial industry solutions. In 2019, the company's products and services were successfully shortlisted again in Bank of China Ltd. head office, China China Minsheng Banking Corp head office, Huaxia Bank head office and other units. As a partner of Huawei, the company makes full use of its high computing chip and Huawei cloud platform to build industry solutions in the financial sector.
Investment advice: we are optimistic about the future development of the company in the Internet of things industry. It is estimated that the EPS in 20-21 will be 0.25,0.31 yuan respectively, increasing the holding of-An investment rating.
Risk hint: competition in the financial security industry intensifies; business growth falls short of expectations.