Liande equipment released the 2020 China report, the first-half income of 352 million increased 2.3% compared with the same period last year, and the home net profit was 37.69 million, down 12.3% from the same period last year. After deducting the influence of tax rate, the net profit is flat, and the net profit for the whole year is expected to be 90 million corresponding to 52 times. We are optimistic about the company's new business layout and maintain prudent recommendations.

1. The company's operation and production gradually resume Q2 single-quarter revenue growth of more than 352 million in the first half of the year, 2.3% growth in Q2 revenue over the same period last year. Q2 single fist income increased by 16.28% in 188 million year-on-year, down 1.65% from the same period last year. From a structural point of view, about 80% is the bonding fitting equipment of the company star, and the acceptance confirmation is affected by the epidemic. The proportion of AMOLED equipment in the first half of the income is still low, while AOI testing and automotive electronics have 10 million revenue recognition in the first half of the year.

2. Increased sales rate due to after-sales service increase in sales expenses waiting to be reviewed by high-tech enterprises during the period of Quaker review. 1) Management expenses 17.25 million yuan year-on-year increase of 6.92%. 2) sales expenses 18.23 million year-on-year increase of 38.2% is mainly due to the increase in after-sales service fees. The company has been sent to customers since 1919 for AMOLED equipment that won the bid, some of which have been checked and accepted, and the cost of commissioning and installation has increased. 3) R & D expenditure of 26.82 million yuan decreased by 11% compared with the same period last year. 4) Financial expenses of 5.15 million yuan decreased 11.8% compared with the same period last year.

The net profit of 20H1 is 37.69 million, down 12.3% from the same period last year. The decline in net profit is mainly due to the review of the qualification of national high-tech enterprises. The income tax paid on the basis of 138 million increased by 70.8% over the same period last year. If the income tax is refundable to about 5.8 million yuan, the net profit is about the same as the same period last year. The sales rebate decreased, and the cash flow from operating activities was 15.57 million.

3. Increase investment in Daxin business and contribute to new growth points.

The company submitted a fixed increase plan in June, which plans to raise 800 million yuan from no more than 35 specific objects, 240 million to invest in the construction of intelligent equipment for automobile electronic display, 160 million to invest in large-size TV module intelligent equipment construction project, 160 million to invest in semiconductor closed testing intelligent equipment project, and the remaining 240 million to supplement cash flow. The actual controller plans to subscribe for 15 million-30 million yuan. In January of 20 years, the supplier of Continental Group of Germany was formally integrated into its supply chain system, and the R & D and sales of large-size module binding equipment and TV module were successfully realized. The two businesses have accumulated 110 million orders and will increase the large input reserve capacity, which can contribute to the growth point in the future. The growth of the company's on-hand orders is good, but there is uncertainty in the acceptance confirmation affected by the epidemic. It is estimated that the annual revenue will increase by 760 million, and the return net profit of 90 million corresponds to PE52 times, maintaining prudent recommendations.

4. Risk hint: competition intensifies and technology renewal is accelerated.