China report results in line with expectations: significant improvement in the second quarter
The company reported that in the first half of the year, the operating income was 650 million yuan, up 17% over the same period last year; the net profit was 93 million yuan, up 12% from the same period last year; and the non-net profit was 86 million yuan, up 13% from the same period last year. The performance of the second quarter was significantly better than that of the first quarter. In the second quarter alone, revenue increased by 42% over the same period last year, up 118% from the same period last year. The net profit returned to the home increased by 48% over the same period last year, an increase of 173% compared with the previous quarter. The net cash flow of operation was 10 million yuan, which was greatly improved compared with the previous quarter. The company's reported results are in line with the previous performance forecast range.
Intelligent manufacturing: the main business of parking equipment continues to benefit from the demand release brought by the policy dividend the company realized intelligent mechanical parking equipment business income of 420 million yuan in the first half of the year, accounting for 64% of the company's total revenue, an increase of 19% over the same period last year. The COVID-19 epidemic in China slowed down the progress of project construction in the first quarter, which had a great impact on the revenue recognition and operating cash flow of the company's equipment business. The pace of infrastructure real estate construction accelerated in the second quarter, and the release of downstream demand brought new orders. With the continuous improvement of China's economic growth and urbanization rate, the urban parking industry is in the rapid growth stage of market demand and policy dividend release. The construction of urban parking lots has become an important part of the "new infrastructure" and "make-up boards" projects, and smart parking has stepped into the "new infrastructure" fast track. The company has outstanding growth and advantages in the gradually mature three-dimensional garage industry.
Investment and operation: integrated layout of parking industry, acquisition of Changan parking benefits the company acquired Changan parking through industrial funds last year, creating parking operation brand "Maypark parking", trying to build parking investment and operation industry chain. In the first half of 2020, the company realized parking lot operating income of 30 million yuan, accounting for 4.54%, 10 times the scale of the same period last year. The company's "intelligent manufacturing" and "investment and operation" two-wheel drive strategic layout is really formed, driving the sustainable and healthy development of future performance.
Additional issuance successfully completed: power equipment capacity expansion and smart cloud parking development in the first half of this year, the company completed the additional issuance, raised 760 million yuan of funds, and plans to invest nearly 300 million in Dongguan and Xuzhou bases for production expansion and construction. the production capacity of about 40,000 sets of three-dimensional parking equipment is added. At the same time, it is planned to invest 280 million yuan to build an intelligent parking system platform to promote the company's "intelligent building + parking resources + Internet" whole industry chain development strategy.
Profit forecast
From 2020 to 2022, the company is expected to achieve a net profit of RMB 2.2 million, up 39% and 36% over the same period last year, corresponding to a PE of 25-18-13. Maintain the company's "buy" rating.
Risk hint
Investment in infrastructure real estate fell short of expectations; raw materials fluctuated sharply; the impact of the epidemic exceeded expectations.
