Event: in 2019, the company achieved revenue of 750 million yuan, an increase of 23.20% over the same period last year, and a net profit of 127 million yuan, an increase of 13.39% over the same period last year. In 2020, Q1 achieved 128 million yuan in revenue, an increase of 3.73 percent over the same period last year, and a net profit of 11 million yuan, down 6.03 percent from the same period last year. KuaiBao, the company's previously released performance, is expected to achieve an income of 734 million yuan and a net profit of 124 million yuan in 2019. The company's actual income and return net profit are slightly higher than KuaiBao's forecast.
The performance is growing steadily. In terms of business, the company's industrial automation business revenue in 2019 was 497 million yuan, up 14.01% from the same period last year, accounting for 66.21% of the company's revenue, and the gross profit margin was 42.38%, down 0.82 pct from the same period last year; industrial Internet business revenue was 242 million yuan, up 41.04% from the same period last year, accounting for 32.21% of the company's revenue and 42.88% of the gross profit margin, down 0.78pct from the same period last year The revenue of smart energy business is 9.8776 million yuan, accounting for 1.32% of the company's revenue. For the whole year, the company's overall gross profit margin was 42.50%, down 0.94 pct from the same period last year; the net profit margin was 16.69%, down 2.25pct from the same period last year. The net operating cash flow of the company in 2019 was 123 million yuan, compared with 75 million yuan in the same period last year. The company invested 80.4035 million yuan in R & D in 2019, an increase of 17.67% over the same period last year.
The "three nets" strategy continues to advance. The company continues to deepen the business layout of smart industry, smart energy and smart city, and further defines the 3i strategy of building the "three networks", that is, industrial Internet (IoI) + urban Internet (IoC) + energy Internet (IoE). 1. The sustainable development of industrial Internet business: the smart power plate has successively signed gas turbine power generation control systems such as Jingneng Yuhai 2 × 9F, Jiangyin 2 × 6F, Danyang Huahai 2 × 6F, CLP Changshu 2 × 6F, Henan Baililian 2 × 6F, etc., and the intelligent chemical plate has successively won the bid for Taian Yarong, Lianyungang Runmei, Hubei Kevin, Shaanxi Wright and other projects. In addition to continuing to dig deep into the traditional businesses such as intelligent warehousing and logistics and intelligent iron ladle tracking and dispatching in iron and steel enterprises, the intelligent metallurgical plate has also actively explored new areas and achieved a breakthrough in the first set of unmanned driving business. the unmanned driving products were successfully applied from the laboratory to the production site and put into operation in the No.2 Library of Jiulong Iron and Steel Logistics Park. At the same time, it successfully won the unmanned transformation project of 5 vehicles in the Yangtze River cold rolling raw material depot of Shagang Group. In addition, the company began to lay out the unmanned grab business and made use of the unmanned transformation of the grab truck in the dry material shed of the China Machinery Project. 2. Urban Internet: it mainly focuses on three major areas: smart urban management (sanitation, Jiefen, comprehensive law enforcement, waste soil, landscape lighting, etc.), smart water (water supply, drainage, city-level water), and smart parks (development zones, chemical parks). And in the relevant districts and counties of Nanjing city management departments intelligent sanitation, intelligent waste classification Jiangsu Changshu New material Industrial Park Intelligent Chemical Park, Jiangsu Taixing Economic Development Zone Intelligent Chemical Park and other projects have been applied. 3. Energy Internet business has been further developed: in 2019, the company successfully acquired and controlled Lingbi Guozhen Biomass Thermal Power Co., Ltd., and planned to put into production for power generation and heating by the end of 2020. Anhui Susongke far Green Energy Co., Ltd. plans to heat the Susong Linjiang Industrial Park by the end of 2020. Successfully acquired the biomass heating project of Nantong Keyuan Green Energy Co., Ltd. and the roof photovoltaic project of Hefei Changbingjiu Energy Co., Ltd.
Investment suggestion: from 2020 to 2022, the income of the company is estimated to be 9041182max 1.505m, EPS 0.660.88max 1.13 respectively, and the current price corresponding to PE is respectively 22-16-13 times. Maintain a "buy" rating.
Risk hint: the epidemic affects the speed of the company's business.