This report is read as follows:
The combination of strong and strong forces to enhance competitiveness, the company's products will accelerate to expand to more areas. There is expected to be a net profit inflection point in 2020, driving valuations higher. Maintain the "overweight" rating and maintain the target of 23.36 yuan.
Main points of investment:
Maintain the "overweight" rating and maintain the target price of 23.36 yuan. The company's acquisition of Jiabo technology complements the shortcomings of AIDC printing. In 2020, the company will not only continue to plough the market in the advantageous areas such as traditional logistics and retail, but will rely on the favorable environment of domestic substitution and accelerate its penetration into the fields of transportation, medical care, manufacturing, food, energy and power, and other giants such as zebras. Taking into account the impact of overseas epidemics, the 2020-2021 net profit is estimated to be 2.2 billion yuan (- 0.31 percent) and 3.00 billion yuan (- 0.16 percent), and the additional net profit for 2022 is estimated to be 370 million yuan. The corresponding EPS is 0.68 (- 0.10), 0.93 (- 0.05) and 1.15 yuan, respectively. The company's AIDC business layout is perfect, and it has become the leader of AIDC in China, maintaining the target price of 23.36 yuan, corresponding to 34xPE in 2020, and maintaining the "overweight" rating.
The synergistic effect of Youbo News and Jiabo science and technology is 1: 1 > 2, the competitiveness has been significantly improved, and the domestic AIDC leader has taken shape. In 2019, Youbo acquired Jiabo Technology to give full play to the advantages of both sides, combining collection products such as Uber PDA and intelligent POS with output products such as Jiabo technology labels and bill printing equipment. Based on the synergy in product, procurement and sales between the two sides, this restructuring will play a role of 1: 1 > 2 and significantly enhance competitiveness.
AIDC products have penetrated into many fields, and the net profit inflection point is expected to be ushered in in 2020. The traditional logistics express industry reduces costs and increases efficiency from off-site to on-site, which brings new growth space for the company in the field of traditional advantages. In the emerging fields of transportation, health care, manufacturing, food, energy and electricity, due to performance-to-price ratio, domestic substitution and other reasons, Youbo, which is integrated with Jiabo, has the strength to compete with overseas giants, and its share is expected to increase rapidly. The company is expected to usher in a net profit inflection point in 2020, driving valuations higher.
Catalyst: get big customer orders and new product launches
Core risks: exchange rate fluctuations, increased competition, higher-than-expected epidemic development