Report guide

According to the 2019 annual report, the company achieved a total operating income of 1.291 billion yuan, an increase of 28.87% over the same period last year. The net profit belonging to shareholders of listed companies was 155 million yuan, an increase of 18.63% over the same period last year, which is in line with the forecast range.

Main points of investment

The annual performance has increased steadily, and the equipment and operation sectors have developed in coordination.

In 2019, all business sectors of the company continued to make efforts. Relying on the industry status of Weichuang Automation and Tianchen Intelligence in the core business plate intelligent mechanical three-dimensional parking equipment industry, the company has made great progress in giving full play to its capital and technical advantages, and its sales have achieved sustained and rapid growth; the company has full orders on hand and the proportion of revenue has increased.

The parking lot operation is growing rapidly, but it accounts for a relatively small proportion of the total revenue, and there is a broad space for the future. The company makes an overall acquisition of Changan parking through the industrial fund, taking this as an opportunity to build Wuyang parking investment and operation plate. The company also disclosed a quarterly forecast that due to the impact of the epidemic, the resumption of work of the company and its upstream and downstream customers was delayed and logistics was disrupted. The net profit of returning home in the first quarter is expected to be 23 million-28 million, down 21-35% from the same period last year. However, with the acceleration of resuming work and production, the company's performance in the second quarter will be marginally improved.

The countercyclical policy stimulus will continue, and the deficiency board of infrastructure construction will increase the demand for parking equipment.

In recent years, the state has issued a series of policies to encourage and support the development of parking industry from the aspects of financing, planning, construction, management and so on. As an important direction of the deficiency board project, "urban parking lot" is expected to improve the level of intensive utilization of urban land resources and effectively alleviate the problem of "parking difficulty" in the city. The company fully resumed work on February 10, and the delay in civil construction caused by the epidemic in the first quarter had an impact on equipment installation confirmation, but as monetary policy stimulus increased, the countercyclical structural replenishment board industrial policy may catalyze the demand for parking equipment in the second quarter. Parking garage as an important direction of local new infrastructure, urban parking and charging industry chain is in the stage of dividend release of market demand and policy.

Profit forecast and valuation

From 2020 to 2022, the company is expected to achieve a net profit of 216 million yuan, 299 million yuan and 408 million yuan, an increase of 38.69%, 38.63% and 36.48% over the same period last year. Considering that the urban parking industry is in the rapid growth stage of market demand and policy dividend release, and the company has outstanding advantages in the gradually mature three-dimensional garage industry, has a strong growth, and maintains the "buy" rating.

The stock price catalyst: 1) continuously strengthen the three-dimensional parking equipment manufacturing plate, consolidate and enhance the position of the industry; 2) the continuous growth of car ownership enlarges the gap between supply and demand of parking spaces; 3) the application and development of intelligent manufacturing and industrial Internet of things enhances the company's ability and quantity to obtain parking resources; 4) the parking industry policy is conducive to promoting the development of the industry.

Risk hints: the epidemic continues to affect the supply and circulation of the industrial chain, and the macroeconomic downturn brings risks such as the deterioration of capital liquidity, major changes in industrial policy or a sharp rise in the price of raw materials.