The company issued a forecast for the 2020 mid-term report, realizing a net profit of 62.39 million yuan to 7.799 million yuan, a decrease of 50 percent over the same period last year. Excluding the investment income factor, Q2 achieved a substantial increase in a single quarter, has a good outlook for the whole year, and maintains the buying rating.
Support the main points of rating
Revenue increased at the same time, and net profit increased by 52% excluding investment income. Based on the median, 2020H1 achieved a net profit of 70.19 million yuan, while Q2 made a net profit of 55.11 million yuan in a single quarter. Excluding the investment income of Valin electronic equity in the same period last year, Q2 net profit increased by 51.8% compared with the same period last year. At the same time, the company said that revenue achieved year-on-year and month-on-month positive growth, which means that domestic growth is strong on the basis of fluctuations in foreign markets.
Logistics and financial services have highly flexible opportunities. The company announced that since the second quarter, "accelerate the delivery of products and installation acceptance, increase the domestic market business development efforts, seize new opportunities, and actively promote new products." Referring to our previous company's in-depth report, this year, there are business development opportunities in the field of financial equipment such as logistics intelligent sorting system (mainly for logistics customers such as Shun Feng, JD.com, Santong Yida, etc.) and sorting machines, as well as new product opportunities in areas such as food delivery cabinets, medicine cabinets, intelligent charging piles and so on.
The outlook for the whole year is good. Q2 net profit is close to last year's Q3 level (as mentioned above is actually much higher than last year's Q2 level). Considering the epidemic, some of the business is synchronized back by one quarter, and delivery can be completed within the year by speeding up the implementation. At the same time, the company announced a positive resumption of exports, which means that the negative impact of the subsequent overseas situation may be better than expected. The annual performance growth rate can be based on the revenue growth rate of H1.
Valuation
The net profit of 2020-2022 is 400 million, 500 million and 640 million, EPS is 0.60,0.76 and 0.95 yuan, corresponding to PE is 19x, 15x and 12x. The company's business improvement is better than expected, the valuation advantage is greater, and the buy rating is maintained.
Main risks faced by rating
Follow-up orders are lower than expected; overseas influence is increasing.
