Event
The company released its annual semi-annual report on August 27, 2020, with operating income of 196 million yuan, an increase of 26.02% over the same period last year, a net profit of 32 million yuan, an increase of 84.01% over the same period last year, and a net profit of 30 million yuan, an increase of 93.48% over the same period last year.
The impact of the epidemic is small, and the order reserve is abundant.
The company Q1 realized operating income of 102 million yuan, an increase of 145.36% over the same period last year, and a net profit of 16 million yuan, an increase of 559.89% over the same period last year. Q2 realized operating income of 94 million yuan, down 17.50% from the same period last year, and realized net profit of 16 million yuan, an increase of 7.56% over the same period last year. We speculate that the reason for the substantial increase in Q1 revenue is the lag of orders at the end of 1919, and the reason for the slight decline in Q2 revenue is that the impact of the Q1 epidemic in the past 20 years is reflected in Q2. In addition, the advance payment of the company H1 increased by 119.53% year-on-year, and the inventory increased by 75.45% year-on-year, which means that the company has sufficient order reserves, and the performance in the second half of the year is worth looking forward to.
The operating structure has improved and the gross profit margin has increased substantially.
It is worth noting that the company's 20-year gross profit margin of H1 was 45.69%, an increase of 5.08pct over the same period last year, while the 20-year gross profit margin of Q2 was 52.88%, compared with 38.97% of Q1, an increase of 13.97pct from the previous year.
We believe that the reason for the sharp rise in the company's gross profit margin is that the company's operating structure has been optimized and downstream customers have shifted from traditional third-party IDC data centers to direct industry customers and government disaster preparedness centers.
During the reporting period, the data center (disaster preparedness center) industry achieved sales revenue of 142 million yuan, an increase of 60.24% over the same period last year, while the company's accounts receivable increased by only 15.03% over the end of the year, and accounts receivable were effectively controlled.
Increase investment in research and development to find new growth points
The company's H1 R & D investment cost was 24 million yuan, an increase of 43.25% over the same period last year, and R & D expenses accounted for 12.22% of business income. The company increases its R & D investment to find new growth points, focusing on the layout of underlying optical storage devices (high-capacity optical discs and optical drives), new scene applications (C-terminal optical storage, smart city video storage) and next-generation optical storage. The specific products are smart home data storage products of home hardware + cloud storage, optical drive hardware, smart city video storage, holographic optical storage, Feiteng platform magneto-optoelectronic fusion storage system and high-capacity Blu-ray disc.
Profit forecast
The company is the underlying technology independent innovation, scarce optical storage target, maintain the company's profit forecast, forecast the company's operating income of 7.26 billion yuan in 20-22, net profit of 1.99max 2.70 / 374 million yuan, maintain the "overweight" rating.
Risk hints: macroeconomic fluctuation risk; market competition aggravating risk; technology leakage risk