There has been a big increase in performance. The company released the mid-2020 report that the revenue in the first half of the year was 762 million yuan, an increase of 134.93% over the same period last year, and the net profit was 327 million yuan, an increase of 2995.95% over the same period last year.
Of this total, Q2 achieved an income of 611 million yuan in a single quarter, an increase of 194.95% over the same period last year, and a net profit of 246 million yuan, an increase of 5052.43% over the same period last year.
Profitability increased significantly compared with the same period last year. 1) on the cost side, the gross profit margin increased by 28.14 pctt over the same period last year. 2) in terms of expenses, the rate of expenses during the period decreased 14.57pct compared with the same period last year, in which the rate of sales expenses decreased by 7.71pct, and the rate of management expenses decreased by 5.75 PCT. 3) in terms of cash flow, the net operating cash flow in the first half of the year was 19.61 million yuan, an increase of 111.44% over the same period last year.
ETC pre-installed OBU+RSU+ after the application of joint effort. In terms of business, the revenue of short-range communication service (ETC) in the first half of the year was 658 million yuan, an increase of 214.49 percent over the same period last year. The revenue of dynamic weighing business was 79.05 million yuan, down 9.27% from the same period last year. In ETC business, RSU and post-application relay, the company promotes ETC-related products and solutions for highway applications and urban applications, and makes efforts in the OBU front market: 1) RSU, based on the company's RSU "anti-adjacent road interference", "spatial positioning technology" and other technical advantages, actively cooperate with highway owners to replace and transform their old RSU applications, and at the same time for high-speed stations with large traffic flow Independent research and development of the new ETC mode of "free flow + dual antennas", by adding RSU devices with high transaction success rate and no adjacent channel interference, solved the problem of congestion at some owners' high-speed entrances due to large traffic flow, and helped highway owners to further improve the efficiency of highway billing and optimize the ETC experience. 2) in terms of post-application, we have actively carried out business cooperation with provincial ETC issuers, large property groups and national system integrators, and have successively launched ETC smart parking, ETC refueling, on-road parking and other solutions, which have been tested in Beijing, Guangdong and other provinces. 3) with regard to the front OBU, referring to the announcement, the company has become a first-class supplier to nearly 40 vehicle enterprises, including a number of international well-known mainframe manufacturers.
Short-term, medium-and long-term investment logic. 1) in the short term, following the outbreak of the ETC OBU market last year, the RSU business will contribute significant performance in 2020. 2) in the medium term, we are optimistic about the post-ETC application market represented by urban parking and other areas, as well as the front equipment of OBU. In addition, after the Wuxi 312 accident, the national out-of-limit control is strict, and the weighing business is expected to achieve high growth. 3) in the long run, with the 5G V2X vehicle networking relay, the company takes the lead in the layout of C-V2X intelligent network connection base station and lidar, and aims at a broader market.
Investment suggestion: the company's income from 2020 to 2021 is expected to be 5.789 billion yuan and 7.294 billion yuan respectively, and its net profit is 1.043 billion yuan and 1.431 billion yuan respectively, corresponding to EPS 5.27 yuan and 7.23 yuan respectively, corresponding to PE 10 times and 7 times respectively, maintaining the "Buy-A" investment rating.
