The performance is in line with expectations. The company released the mid-2020 report that the revenue in the first half of the year was 634 million yuan, an increase of 104.75% over the same period last year, and the net profit was-3.22 million yuan, an increase of 95.45% over the same period last year.
The cost control has been strengthened and the cash flow has improved significantly. 1) in terms of cost, as the proportion of hardware checked and accepted in this period is higher than that in the same period last year, the gross profit margin decreased by 11.08pct compared with the same period last year. 2) in terms of expenses, the rate of expenses during the period decreased 30.41pct compared with the same period last year, in which the rate of sales expenses decreased 9.26pct, and the rate of management expenses decreased 21.12pct. 3) in terms of cash flow, the net operating cash flow increased by 64.36% over the same period last year.
We will continue to consolidate the four major business sectors and actively expand emerging businesses. With reference to the bulletin, 1) the public safety and emergency platform section, the newly signed emergency command assistant decision-making system of the emergency management department (phase I), the basic business subsystem of the emergency command center of the emergency management department and other ministerial projects; the provincial platform has won new orders in Beijing, Hainan, Jiangsu, Jiangxi, Heilongjiang and other provinces; prefecture, district and county-level emergency platforms have newly signed projects such as Chengdu, Yantai, Huaian, Gusu, etc. 2) in the industry, new gains have been made in the environment and early warning business. Many projects such as the maintenance contract of the early warning information release system of Beijing Emergency early warning Information release Center, the operation and maintenance project of the nuclear and radiation emergency monitoring and dispatching platform of Northeast Nuclear and radiation Safety Supervision Station, and the construction of enterprise water quality fingerprint database of pollution early warning traceability supervision system of Luyang Industrial Park in Hefei were signed. 3) the urban safety plate has been replicated in Foshan, Xuzhou, Huaibei and other cities, and the information construction of Yantai urban public safety and emergency management construction project (phase I project) was newly signed during the reporting period. 4) Fire safety plate, newly signed Guangzhou Vicino 6th generation flexible AMOLED module production line project, China Cotton Storage Xuzhou Co., Ltd. Fire alarm system upgrade project, Harbin aircraft Industry Group fire remote control system and other fire protection projects. In addition, the company's innovative development of industrial safety, safety culture and education business has also achieved a breakthrough, newly signed Xuwei New District 2021 dangerous chemicals rescue technical competition consulting service agreement project, Wuxi Emergency Management Bureau Municipal Safety production examination Center renovation project and so on.
Investment advice: it is estimated that the EPS in 2020-2021 will be 0.78 yuan and 1.16 yuan respectively, maintaining the "buy-A" rating.
Risk hint: the progress of newly signed projects and repayment is lower than expected; overseas market risk
