Main points of investment
Event: on April 30, 263 disclosed its annual report in 2019 and Q1 performance in 2010. the operating income in 2019 was 1.014 billion yuan, an increase of 9.13% over the same period last year, and the net profit was 175 million yuan. an increase of 102.94% over the same period last year Q1 realized operating income of 247 million yuan in 2020, down 5.84% from the same period last year, and the net profit was 36 million yuan, down 3.46% from the same period last year.
The operating income decreased slightly, and the long-term revenue capacity was not affected: mainly due to the epidemic, some orders were delayed to pick up and the current order decreased, and the company's sales revenue fell sharply compared with the same period last year, resulting in a decline in operating income. Although the profit has declined, it does not affect its long-term profitability.
Pay attention to technological research and development and improve the technical capability of communications business: in 2019, R & D investment of 125 million yuan, R & D revenue ratio of more than 13%, R & D personnel accounted for 56.13% of the total staff. Combined with business development goals, the company reduces staff and increases efficiency as a whole, while maintaining a certain scale of investment in research and development, mainly in webcast, overseas MVNO, enterprise mobile phones, Internet of things and so on.
The "video +" strategy leads the overall entry into the cloud video conference main track: in the video conference business of the company's cloud video business, the company puts forward the "video +" strategy and begins to enter the cloud video conference main track in an all-round way. Through the model of "cloud + end + industry", video technology is deeply integrated with the inside and outside of the enterprise to empower the upstream and downstream ecological chain of the industry and the enterprise. Video conference can solve the problem of north-south interconnection between domestic multi-operators, ensure the quality of high-definition and smooth video communication, video conference has comprehensive compatibility, it can be interconnected with mainstream video conference terminals in the market and has multiple advantages such as stability, high definition and easy to use, so it has become a necessary enabling tool for modern enterprises facing the Internet.
Profit forecast and investment rating: we expect the company's EPS from 2020 to 2022 to be 0.16,0.21 and 0.27 yuan, respectively. The current share price corresponds to a PE of 43,333,26X, respectively, maintaining a "buy" rating.
Risk tips: the easing of Sino-US trade frictions is lower than expected, the progress of video technology research and development is not as expected, and the risk of core customer loss.