The company released its three-quarter report in 2020, with revenue of 599 million yuan in the first three quarters, an increase of 28.65% over the same period last year, net profit of-13 million yuan, down 322.94% from the same period last year, and net profit of-25 million yuan, down 3401.30% from the same period last year. Of this total, revenue in the third quarter was 225 million yuan, up 30.37 percent over the same period last year; net profit returned to the mother was 17 million yuan, up 240.78 percent over the same period last year; and 14 million yuan was deducted from non-return net profit, an increase of 334.19 percent over the same period last year.
The company's quarterly performance is eye-catching, and its cash flow continues to improve. According to the company's three quarterly reports, the company achieved 30.37% revenue growth and 334.19% non-return net profit growth in a single quarter, indicating that the company has gradually got rid of the impact of the epidemic in the first half of the year. At the same time, the company achieved a net operating cash flow of 12 million yuan, a year-on-year growth rate of 227.45%, proving that the company's performance is gradually back on track under the background of resuming work and production.
Tongxin revenue is much higher than expected, and Xinchuang business is sowing or near harvest. According to the company's third quarterly report, the participating company UniCredit Software achieved operating income of 145 million yuan in the first three quarters, of which 101 million yuan in the third quarter. Tongxin Software is a leading domestic operating system enterprise in China, which is currently expanding its business nationwide. Its revenue shows that Xinchuang business is gradually landing, and the company's Xinchuang business harvest season may be approaching.
The core product UOS continues to iterate, and Xinchuang sets sail in the war industry. According to the company's website, Uni-Credit Software has been shortlisted for the procurement projects of organs directly under the central government, the personal version and server version of UOS have been continuously updated, and the industry version of server version has been launched. On September 4, Unified Information Software held a launching meeting of the Industry Division with the theme of "setting sail". It plans to achieve key breakthroughs and rapid growth in China's industry market in three years, and finally establish its dominant position in the industry market, achieving Xinchuang's market share first, Xinchuang's market sales first, and customer satisfaction first. Unified letter operating system has maintained a leading market share in the party and government and other industries, and has been widely used in the party, government and military, finance, electric power and other fields. We believe that unified letter software is expected to further develop and grow with the industry.
Investment suggestion: the company is the leader in the domestic operating system industry, and the revenue of UniCredit Software in the third quarter fully shows that China's Xinchuang market has been started in an all-round way. With the gradual completion of the initial investment, the harvest season of the company's Xinchuang business may be approaching. We are optimistic about the development prospect of the company, and it is estimated that the EPS in 2020 and 2021 will be 1.34 yuan and 1.88 yuan respectively.
Risk hint: the progress of UOS promotion is lower than expected, and the risk of gross profit margin decline due to intensified competition in the industry.
