Event

On August 27, 2020, the company released its semi-annual report. The company achieved revenue of 341 million yuan in the first half of the year, a decrease of 14.47% over the same period last year, and a net profit of 31 million yuan, a decrease of 45.76% over the same period last year. Affected by the epidemic and the international situation, the company's production and operation has been greatly tested, but the company continues to strengthen its implementation and operation in accordance with the strategic deployment of the five major business sectors. The company expands the batch application of SIP products, continues to maintain its market advantage in the aerospace field, and the "Zhuhai-1" constellation developed by the company runs stably.

The company pays attention to the artificial intelligence market, and the functional verification of YULONG410 chips is in progress. The subsidiary company has made outstanding achievements in geographic information and intelligent surveying and mapping business, and its products have been put into "integration of real estate and land".

Project.

Main points of investment:

Satellite big data industry leader: based on the R & D and production of Soc, SIP, EMBC and other aerospace core components, the company has gradually formed an aerospace satellite business pattern with multi-card layout, supported by the acquisition, operation, processing and application of "Zhuhai-1" remote sensing micro-nano satellite constellation and satellite big data, and with artificial intelligence, geographical mapping and intelligent security as the strategic extension.

The "Zhuhai-1" constellation, with 12 satellites in orbit, is one of the largest and most capable commercial remote sensing constellations in China, filling in the gap in the hyperspectral field of China's commercial aerospace. The company has become one of the enterprises with the largest number of hyperspectral satellites in orbit and the most perfect data service capacity of hyperspectral satellites in the world. The company gives full play to the unique advantages of the "Zhuhai No.1" constellation, makes use of the characteristic hyperspectral data to create a new smart city model, and focuses on the product technology research, development and application promotion of "Green Water and Green Mountains". It has become a new benchmark for the application of remote sensing satellite data in China, and the corresponding proposal has been selected as an excellent proposal of the third session of the Ninth CPPCC Zhuhai Committee.

The company continues to invest in scientific research, and the series of achievements launched provide more solid technical support for the production of "Zhuhai-1" satellite standard data products and advanced data products.

The main business has developed steadily, and the technical advantages continue to be highlighted: subsidiary Picyu Intelligence has made outstanding achievements in pipe network detection, silt removal and the construction of information system platform, which has become a new bright spot of the company's performance; subsidiary Platinum Information has been affected by the executive director's guarantee incident, and its performance has declined, and it is still actively continuing to open up new markets. Guided by the 13th five-year Plan of Aeronautics and Astronautics, the company tamps the foundation of core technology, improves the product range, and keeps up with the market demand. committed to aerospace, industrial control and other fields to provide high-reliable, high-performance, self-controllable, low-cost aerospace electronic core components. The company deepens external cooperation, tackles key technologies, breaks through a number of technical difficulties in the research and development of SOC processors, and the new products successfully pass user trials and customer appraisal.

The artificial intelligence business market potential is huge: the company has established artificial intelligence as the new strategic direction, and the new generation of artificial intelligence processor chip "Yulong" has the ability to accelerate the processing of artificial intelligence algorithms and can be applied to a variety of intelligent scenes. AI distributed remote sensing image reasoning system is being built. The company's chip team spared no effort to carry out YULONG410 chip research and development, breaking through a number of technical difficulties. At present, the company has initially formed an algorithm system based on satellite remote sensing, satellite remote sensing, UAV aerial photography and video surveillance, and pays attention to the cooperation in the research and development of artificial intelligence technology, and the process is gradually standardized. relying on the resources of universities and research institutes to carry out key algorithm research provides a strong support for the construction of digital China.

Profit forecast and investment suggestion: in 2020, 2021 and 2022, the company is expected to achieve a net profit of 131 million yuan, 181 million yuan and 222 million yuan respectively, corresponding to 0.19,0.26 and 0.32 yuan respectively, and the PE of the corresponding stock price is 67.74,49.03,39.98 times respectively.

Risk factors: the speed of technological innovation is not as fast as expected and the progress of market expansion is not as expected.