Event: the company released its three quarterly reports for 2020. From January to September 2020, the company achieved operating income of 353 million yuan (+ 75.30%), net profit of 82 million yuan (+ 1441.00%), and net profit of 75 million yuan (+ 16046.59%). At the same time, the company announced that it expects to achieve a net profit of 120 million yuan to 145 million yuan in 2020, an increase of 898.68% and 1106.73% over the same period last year.
The unmanned systems business continues to cash in and release performance, which is the main driver of the company's substantial growth in performance.
2020Q3, the company achieved a single-quarter revenue of 145 million yuan (+ 107.43%) and a net profit of 51 million yuan (+ 1322.07%), continuing the high growth since the mid-2020s. According to the 2020 interim report and the current quarterly report disclosed by the company, we expect the third quarter results to be mainly contributed by the delivery and acceptance carryover of the three major contracts disclosed earlier, with a total contract amount of 142 million yuan / 126 million yuan delivered for acceptance in the current period. among them, the total contract amount of a certain type of military UAV is 73 million yuan / 65 million yuan has been delivered for acceptance, and the contribution of drone orders accounts for more than 50%. The company's 20H1 unmanned systems business achieved revenue of 124 million yuan (+ 107.49%), accounting for about 60% of revenue, which is the main reason for the company's continued substantial growth.
There are plenty of orders on hand, and high growth is expected to continue throughout the year. The company is currently implementing a certain military drone product for a military customer, with a total contract amount of about 219 million yuan (including tax). Delivery is expected to be completed this year, which is expected to contribute significant performance increments to the company in the fourth quarter, and is expected to continue high growth throughout the year. From the balance sheet side, various indicators can also cross-verify that the company's current on-hand orders are sufficient, which is expected to support a high increase in annual performance: 1) prepaid: 20Q3 contract liabilities of about 29 million yuan (+ 81%); 2) prepaid: 20Q3 prepayment of 41 million yuan (+ 65%); 3) inventory: 20Q3 inventory of about 321 million yuan (+ 36%), mainly due to the increase of spare parts for on-hand orders. 4) other receivables: 20Q3's other receivables are about 32 million yuan (+ 138%), mainly due to the increase in tender deposits and transactions paid by the company in the current period.
The continuous optimization of internal management, the improvement of gross profit margin and the decline in the rate of expenses during the period led to a sustained rebound in profitability.
From January to September 2020, the company's net profit margin continued to recover to 24.09 per cent (+ 6.76 pct), with gross margin rising 2.62 pct to 53.32 per cent and period rates 28.96 per cent (- 4.17 pct). From the perspective of cost control, the company's management rate, financial rate and sales rate decreased by 2.48,1.10 and 0.59 pct respectively in the first three quarters, and the internal management optimization was effective.
Risk hint: the construction progress of the fund-raising project is less than the expected risk; the order is less than the expected risk; the "two gold" occupies a higher risk.