Event: short-term performance transition, deducting non-net profit to achieve growth. During the reporting period of the third quarterly report, the company achieved operating income of 1.628 billion yuan, down 33.19% from the same period last year, and realized a net profit of 145 million yuan, down 28.84% from the same period last year.
Comments:
Gross profit margin rose sharply, deducting non-net profit to achieve growth. In 20 years, the gross profit margin of Q1-3 company was 45.72%, which increased 16.4pct and 1.3pct compared with the same period last year. While the income declined, the deduction of non-net profit was 116 million yuan, an increase of 3.75% over the same period last year. We believe that the short-term pressure on the company's performance is mainly due to the delay of traditional business orders such as public security informatization caused by the epidemic, while the demand for emerging projects with high profit margins in data Lake is still strong, and is optimistic about the company's long-term development potential.
The business of the data Lake is progressing smoothly, and the amount of data entering the lake is increasing rapidly. As of October 2020, the company has launched 30 data lake projects in 20 provinces and cities across the country. The data lake storage space 2200PB built / under construction by the company currently enters the lake data 120PB, and the intended storage data volume exceeds 200PB, while the lake data volume is 45PB and 80PB by the end of 19 and the first half of 20 years, respectively, and the lake data is growing rapidly. We believe that with the accumulation of technology in the field of Blu-ray storage, the company has reached strategic cooperation with China Mobile Limited, Xinhua and other mainstream manufacturers, and there is a huge market space for data lake-related business.
The data ecology of "collection, storage and analysis" is gradually established. Up to now, the company has accumulated 50.64 million pieces of data collection and 21.9 million data labels, added more than 180 cases of self-developed algorithms and accumulated 415 cases of self-developed and ecological algorithm products in the first three quarters. We believe that the company is evolving from a single data storage service provider to a data intelligent service provider, and is expected to gradually form a closed loop of "data collection, storage and analysis" in the future, constantly opening up new requirements.
The construction project of the key vehicle networking pilot area that won the bid, Baidu, Inc. Capital-increasing vehicle networking subsidiary. In September 2020, the company and China Institute of Information and Communication jointly won the bid for the construction of a Sino-German intelligent network joint automobile test site, with a winning amount of 337 million yuan. The construction demand of vehicle network demonstration zone in China is still increasing, and according to the plan, it will be gradually popularized in typical cities and highways from 2022. On October 27th, the company examined and approved the letter of intent of Baidu, Inc. 's capital increase subsidiary Hualu Yiyun. The equity transaction is expected to bring about 300 million yuan of non-recurrent income to the company in Q4. After the capital increase, the two sides will carry out in-depth cooperation in the field of vehicle networking. We believe that the key benchmarking projects in which the company wins the bid are expected to establish a corporate brand, which has played a good role in promoting bidding for subsequent related projects. at the same time, it has entered Baidu, Inc. 's intelligent transportation ecological circle, and the intelligent transportation field will become another growth pole of the company in the future. The company is a leading domestic Blu-ray storage company, the performance of short-term pressure, but the data lake business shows a trend of development, data integration services ecology, is expected to continue to benefit in the future, it is recommended to pay attention to.
Risk factors: 1. The international trade environment has further deteriorated. two。 Transportation business is greatly influenced by national policy. 3. Big data import data lake did not live up to expectations.