The performance was in line with expectations and was briefly under pressure in the first quarter: the company's operating income in 2019 was 701 million yuan, an increase of 1.7% over the same period last year; the net profit belonging to shareholders of the listed company was 78.126 million yuan, an increase of-15.63% over the same period last year The net cash flow generated by business activities was-3.2236 million yuan, an increase of-106.35% over the same period last year, mainly due to a decrease of 17.5513 million yuan in the same period as "cash received from the sale of goods and services". The proportion of bills receivable in the current period increased over the previous year, and the bills receivable at the end of the period increased by 14.1616 million yuan compared with the same period last year, while the final bills could not be reflected in the cash flow statement. Overall performance maintained rapid growth in 2019, in line with expectations. The company's gross profit margin for 2019 was 33.40%, up slightly from the same period last year. At the same time, the company's annual expenses increased compared with the previous quarter, mainly due to an increase of 112.58% in financial expenses. The company's export business accounts for about 18.50%, and the company's main business income in the international market reached 129.7329 million yuan, a decrease of 19.27% over the same period last year. At the same time, in order to share the operating results with shareholders, the company announced a profit distribution plan of 0.52 yuan for every 10 shares. Affected by the epidemic, the company achieved operating income of 89.018 million yuan in the first quarter of 2020, a decrease of 35.55% over the same period last year, mainly due to the impact of the epidemic, which affected the company's project acceptance in the first quarter and delayed the recognition of income; the net profit attributed to shareholders of listed companies was 18.6654 million yuan, an increase of 29.74% over the same period last year, and short-term performance was under pressure; the net cash flow generated by operating activities was 12.9348 million yuan, down 126.95% from the same period last year. The company's gross profit margin in the first quarter of 2020 was 31.95%, the same as the same period last year. At the same time, the company's expense rate in the first quarter of 2020 increased by 6.33pct compared with the first quarter of 2019. The sales expense rate, management expense rate, R & D expense rate and financial expense rate were 10.48%, 11.07%, 5.35% and-0.43%, respectively, and the year-on-year growth rate was-1.43pct, 7.23pct, 1.25pct,-0.72pct. The decrease in sales expenses was mainly due to the impact of the epidemic and the decrease in sales-related expenses. The increase in sales expenses is mainly due to the increase in rental payments of the holding cold chain operating company, while the decrease in financial expenses is mainly due to the receipt of interest income in the current period.

The growth rate of the automatic warehousing system has slowed down, and the service income has increased rapidly: in 2019, the total amount of social logistics maintained a steady growth, with a total social logistics volume of 298 trillion yuan, an increase of 5.9% over the same period last year at comparable prices. The growth rate was 0.5% lower than that of the same period last year, including 6.4% in the first quarter, 6.1% in the first half of the year, and 5.7% in the first three quarters. It rebounded slightly in the fourth quarter. In 2019, the total income of the logistics industry maintained rapid growth, and the total income of the logistics industry in 2019 was 10.3 trillion yuan, an increase of 9.0% over the same period last year. In 2019, the domestic market demand for automatic warehousing system is still growing, but compared with the previous year, the growth rate has slowed down and the quality of development has improved as a whole.

The operation of the company is stable and there is no big fluctuation. In 2019, the company achieved main business income of 694.8581 million yuan, an increase of 1.73% over the same period last year, including high-precision shelf income of 323.2356 million yuan, a decrease of 2.64%, a gross profit margin of 31.24%, an increase of 0.55pct over the previous year; automation system integration income of 364.7519 million yuan, an increase of 5.05% over the same period last year, and a gross profit margin of 33.85%, an increase of 0.21pct over the previous year Service revenue was 6.8706 million yuan, an increase of 79.76% over the same period last year, and the gross profit margin was 68.11%, an increase of 24.9pct over the previous year. In 2019, the company's shelf / automation system integration sales of 84078.05 tons, an increase of 0.16% over the same period last year, inventory of 33479.11 tons, a decrease of-10.31%.

The actual controller was changed to Jingdezhen SASAC and coordinated development to build the ecological circle: in March, the company announced that controlling shareholder Sheng he Investment and concerted Action Shanghai Beili and Tao Wen Travel Group signed an agreement to transfer 29.99% of the shares. After the transfer, the actual controller was changed to Jingdezhen SASAC. After being reviewed by the State Administration of Market examination, the program is expected to give full play to its synergy. The real controller has strong financial strength and has launched a number of local intelligent manufacturing industry support policies, which is expected to fully expand the warehousing and logistics business in ceramic industry, tea products and agricultural products related areas in the future. In 2019, the company's R & D expenditure totaled 29.2862 million yuan, all expenses, accounting for 4.18% of operating income. The company has 123 R & D personnel, accounting for 14.25% of the total number of the company. During the reporting period, the company set up a wholly-owned subsidiary Yinfei supply chain (raw material supplier), set up a shareholding company Yingfei Fengyun (a technology company developing intelligent software), and participated in two cold chain operating companies. Hefei Jingsong (technology company and integrator for developing smart devices), Shanghai Fast Rui (technology company for developing smart devices) and Nuode shares (car-free transportation platform company) Through equity participation, joint venture and other ways, the company will bring high-quality enterprises into the company ecosystem, drive the company's business, meet the needs of different types of customers, and provide a variety of solutions.

Investment suggestion: the company's annual report and quarterly report are in line with expectations and are expected to give full play to the synergy with major shareholders to create the company's intelligent warehousing and logistics industry ecosystem. We predict that the EPS of the company from 2020 to 2022 is 0.28,0.34 and 0.39 yuan respectively, and the corresponding PE is 31.19,25.95,22.66 times respectively. Maintain the recommended rating.

Risk tips: macroeconomic cyclical risk; orders are lower than expected; risk of raw material price fluctuations; epidemic impact on downstream demand; bad debt risk of accounts receivable.