Main points of investment:
The project acceptance and workload settlement were postponed due to the epidemic situation. The company's revenue in the first half of this year was 244 million yuan, down 44.96% from the same period last year, and the net profit was 34 million yuan, down 62.27% from the same period last year. The net profit from non-parent was 34 million yuan, down 61.63% from the same period last year, and the operating net cash flow was-73 million yuan. The gross profit margin in the first half of the year was 53.41%, an increase of 9.91pct over the same period last year, and accounts receivable totaled 1.252 billion yuan. In the first half of the year, R & D investment totaled 44.8902 million yuan, an increase of 12.84% over the same period last year, mainly focused on self-controllable BIM key technologies and cloud business-related product research and development.
Power grid life cycle SaaS service provider. The company provides SaaS products and services covering the whole life cycle of power grid planning and design, infrastructure management, operation management, maintenance management and marketing management, as well as user-oriented integrated energy management information products. Mainly for power grid companies, power design enterprises, local power companies, power distribution companies, smart parks and energy-using enterprises and other users. In the business system, the company's core business is divided into three major business systems: design plate, infrastructure management plate and distribution power plate.
BIM+ 3D design opens a new space. The design plate business mainly provides online information services such as transmission line design, substation design, cable design, distribution network design software products, online design institute SaaS products and power grid engineering cost compilation software products for power grid companies and design enterprises; at the same time, it provides offline technical services such as power network planning, consulting, main network, distribution network design and so on. In terms of design software products, with the industry development trend of comprehensive application of 3D design in power grid transmission and transformation engineering, relying on the self-developed BIM underlying technology platform, the company has launched a series of products, such as 3D transmission line design software, 3D substation design software, 3D cable design software, 3D distribution network design software, etc., covering all professional 3D power grid design and deeply meeting the needs of power grid design enterprises. Fully support power grid design enterprises to carry out 3D design work.
The introduction of state-owned assets to help make it bigger and stronger. The actual controller of the company signed a share transfer agreement with Zhongjiao Information in September 2019. For the first time, 81.8156 million shares of the company were transferred to China Communications Information, accounting for 13.50% of the company's total share capital, and the transfer price was 14.27 yuan per share. Mr. Jiang Chunhua, Mr. Fang Wen and Mr. Luo Xinwei waived the voting rights of their combined 200 million shares of the company. If the transaction is implemented smoothly, China Communications Information will become the controlling shareholder of the company and SASAC of the State Council will become the actual controller of the company. The net profit promised by the performance in 2019, 2020 and 2021 is not less than 353 million yuan, 424 million yuan and 508 million yuan respectively. If the registration of the transfer of shares involved in the initial share transfer is not completed before December 31, 2019, the profit commitment period will be extended accordingly, and the subsequent promised net profit shall be determined by the parties through separate consultation. We believe that the introduction of state-owned capital shareholders will help the company to optimize its shareholder structure and improve its ability to undertake large-scale projects, and Zhongjiao Information will give full play to its resources and experience accumulated at home and abroad for many years. Further help the company to expand domestic and foreign sales channels of related products and services, innovate business models and maximize synergy. The two sides will give full play to their respective advantages and strive to build the company into a service provider with independent controllable BIM technology in the future.
Large-scale repurchase shows confidence. The company disclosed the buyback announcement on September 24 and intends to use its own funds to buy back the company's shares through centralized bidding, all for the follow-up implementation of equity incentives or employee stock ownership plans. The total amount of repurchase funds shall not be less than 100 million yuan (inclusive) and shall not exceed 200 million yuan (inclusive); the price of repurchased shares shall not exceed 15.00 yuan per share (inclusive); the implementation period of the repurchased shares shall be no more than 12 months from the date of consideration and approval of the repurchase plan at the shareholders' meeting.
Profit forecast and investment advice. We believe that the arrival of state-owned assets will bring obvious coordination, the degree of cloudization of the company's products will continue to improve in the future, and the three-dimensional BIM+ will bring new space. We forecast that the operating income of the company from 2020 to 2022 is 1.214pm 13.48pm, respectively, and the net profit returned to its mother is 3.41pm 405max, respectively, and the corresponding EPS is 0.56pm 0.67max 0.83 respectively. Refer to the comparable company, give the dynamic PE25-30 times in 2020, the reasonable value range of 6 months is 14.0-16.8 yuan, and give the rating of "better than the big city" for the first time.
Risk tips: electricity distribution reform is lower than expected; SaaS progress is slow; accounts receivable and cash flow deteriorate, and so on.