Event: the company released the mid-2020 report: during the reporting period, revenue of 931 million yuan was reduced by 4.81%, and the net profit of 65.59 million yuan belonging to shareholders of listed companies was reduced by 57.95%. The net profit of 56.57 million yuan after deducting non-recurring profits and losses belonging to shareholders of listed companies decreased by 42.37%, and the net cash flow generated by operating activities was-97.03 million yuan.
Q2 revenue increased by 20.9%. Logistics and new retail sectors were under short-term pressure. Q2 achieved revenue of 515 million yuan and increased by 20.9%, returning to positive growth after Q1 fell by 24.6%. During the reporting period, the sales expense rate increased by 9.4% 2pcts, mainly due to the expenditure of 25.51 million yuan on financial equipment maintenance fees compared with the same period last year; the management expense rate was the same as that of the same period last year; the R & D expense rate increased by 17.9% 1.2pcts, and the company continued to increase R & D investment to expand new application areas. Overseas income of 231 million yuan decreased by 13.6%, which is expected to be mainly affected by the epidemic.
In terms of business, the income of strategic emerging industries, including finance, logistics, and new retail, reached 662 million yuan, with a drop of 1.63%. Financial business is expected to maintain a relatively high demeanor, and the demand for logistics cabinets is expected to decline with the increase in permeability. the logistics automation market expanded smoothly; due to the strategic adjustment of major customers, the single customer income contribution of the new retail business decreased significantly, but the intelligent slightly exceeded achieved better growth. The income of the traditional industry sector fell by 11.79% with 269 million, which is expected to be mainly caused by the impact of the epidemic.
Waiting for the weakening of the impact and the expansion of new growth points
Self-service is the trend of the times, but under the long-term growth trend of the industry, due to the greater contribution of important customers in the company's logistics and new retail sectors, due to the influence of customer bidding arrangements and market promotion progress and other factors, downstream demand must be volatile, which will have an impact on the company's current revenue and profits. However, what can not be ignored is that, on the one hand, companies in the field of logistics actively expand the logistics automation market, winning bids in the first half of the year for procurement projects by companies such as Post and SF Fung, and the amount of orders and contracts increased significantly compared with the same period last year; new retail business, on the one hand, expand Chao play and other new application directions, on the other hand, release the "City Partnership Program" for small and medium-sized operators, increase the promotion and application of intelligent sales cloud platform, and achieve good results.
At the same time, the company pays close attention to the demand and market opportunities of all kinds of new infrastructure and intelligent terminals triggered by the epidemic, focusing on application scenarios such as contactless distribution, intelligent recycling, intelligent recharging, intelligent medical care, and convenient government affairs. New growth points are expected to be expanded in the future.
Investment suggestion: considering the impact of the epidemic and the shrinking demand of logistics and new retail customers, the company's EPS will be reduced from 0.78,0.94 yuan per share to 0.52,0.59 yuan per share in 2020-2021, and the EPS is expected to be 0.68 yuan per share in 2022. Optimistic about the company's accumulation in the field of self-service equipment, as well as the current low expectations, maintain the "buy" rating.
Risk hint: the promotion of new products in the logistics industry is not up to expectations, and the competition in the vending machine market intensifies.
