Event: the company released its annual report in 2019 and its first quarterly report in 2020. In 2019, the operating income was 928 million yuan, an increase of 19.17% over the same period last year, and the net profit was 143 million yuan, an increase of 14.35% over the same period last year. 2020Q1 business income was 89 million yuan, an increase of 16.22% over the same period last year, and the net profit was 8 million yuan, an increase of 1.35% over the same period last year.
Comments:
The restructuring of major assets ended smoothly, and the scale and efficiency were significantly improved. After the completion of major asset restructuring, the company has become the core of intelligent control technology, oriented to rail transit, aerospace, nuclear industry and other high-tech fields of intelligent equipment manufacturers, asset quality and operating efficiency have been significantly improved. In 2019 and 2020Q1, operating income increased by 19.17% and 16.22%, respectively, and net profit increased by 14.35% and 1.35%, respectively. In 2019, the company's original business income was 315 million yuan, and the total income of new business in the aerospace and nuclear industries was 613 million yuan, accounting for about 2% of the total income, with a total net profit of 78.14 million yuan. The new business significantly improved the company's operating scale and efficiency.
Barriers in the aerospace and nuclear industries are extremely high, and the new injection of business will drive the company's rapid growth.
The newly injected measurement and control simulation equipment, chip products and nuclear industry robot business are in a leading position in China, and the related business technical barriers and market barriers are very high. In 2019, the business revenue of measurement, control, simulation and microsystems was 460 million yuan (+ 29.34%), and that of the nuclear industry and special environment intelligent equipment systems was 154 million yuan (+ 42.6%), both of which were significantly higher than the overall level of the company. The amount of products sold by the company to related parties in 2020 increased by 65.39% to 1.558 billion yuan compared with the same period last year, reflecting that Xuanyu Space and Xuanyu Intelligence have sufficient orders on hand, and will promote the rapid growth of the company's overall performance for the whole year.
The positioning of the company's development platform is clear, and high-quality assets in vitro are expected to continue to be injected. After the completion of major asset restructuring, the company is clearly defined as the industrial development platform, system and mechanism innovation platform and asset securitization platform in the field of intelligent equipment of the Fifth Aerospace Academy. The company indirectly controls the fifth aerospace institute is the main construction force in the field of domestic space technology, with assets of close to 60 billion yuan at the end of 2017, and has a large number of high-quality assets in the field of system-level, component aerospace product development and intelligent industrial equipment. The fifth aerospace institute is the first batch of pilot units for the restructuring of scientific research institutes. As a listed platform with a clear status under the development of the company, the company is expected to benefit from the in-depth promotion of the restructuring of the fifth aerospace institute.
Profit Forecast and Investment suggestion: the revenue in 2020-2022 is estimated to be 1.403 billion yuan, the net profit of return to the mother is 2.28 million, and the EPS is 0.32, 0.45 and 0.65 yuan, respectively. The current stock price corresponds to PE in 41-29-20, covering it for the first time and giving it a "buy" rating.
Risk hint: the progress of dedicated market promotion is not as expected; the expansion of commercial market is not as expected.