Event: disclosure of the company's three quarterly reports
In the third quarter of 2020, the company realized operating income of 919 million yuan, an increase of 38.20% over the same period last year, and the net profit attributable to shareholders of listed companies was 42 million yuan, down 8.70% from the same period last year. In the first three quarters of the company, the net profit attributed to shareholders of listed companies totaled 106 million yuan, an increase of 3622% over the same period last year, in line with growth expectations. In the third quarter, the company continued to focus on its main business and further implemented measures to reduce costs and increase efficiency to tap growth potential. The "IC+ Cloud" segment focuses on strategic customers and business development needs, continues to increase investment in core key technologies, highlights the company's competitive advantages, and products are widely used in high-precision and special applications; microwave ceramic business keeps pace with market changes, optimizes the allocation of resources, and maintains steady growth; automotive intelligent network connection plate business integration benefits gradually present, continue to reduce losses.
Main points of investment:
Domestic Beidou chip leader: the company is one of the largest R & D, manufacturing and suppliers of navigation and positioning products and services, and one of the enterprises with the most obvious advantages in domestic Beidou chip research and development and the most outstanding ability of independent innovation. The subsidiary and Xingtong mainly develop Beidou chip board, which has won the championship in navigation, high precision and baseband RF integrated chip comparison over the past 10 years. It has created large-scale applications in the fields of vehicle preloading, drones, self-driving and robots. In 2016, the company introduced the National Integrated Circuit Industry Fund, and it is also the only listed company in the Beidou industrial chain that has a stake in the national integrated circuit fund, with a shareholding ratio of about 12%.
The networking of Beidou 3 has been completed, and the trend of localization of basic devices is obvious: on June 30, 2020, the networking of Beidou 3 was completed, so far, the "three-step" strategy of Beidou system has been fully realized. The company provides basic devices for Beidou 3. In this process, the company gives full play to its core scientific and technological advantages and promotes the localization of Beidou 3 chip with excellent scientific and technological strength. After 6 years of research and development, the chip technology has been rapidly upgraded to 22nm. In December 2019, a new generation of 22nm Beidou / GNSS chip supporting Beidou No. 3 new signal is the industry's leading RF baseband integrated navigation and positioning chip, which has the market application conditions and is about to enter mass production.
5G + Internet of things promotes the development of satellite navigation and positioning products for civilian use: the development of 5G and the Internet of things is closely related to satellite navigation systems. The company actively grasps the development trend of "intelligence, networking and electrification" of automotive electronics, which not only provides strong support for the development of China's satellite navigation and location service industry, but also produces remarkable economic and social benefits in the fields of transportation, public safety, weather forecast, disaster relief and disaster reduction. Wenchuan earthquake, Malaysia Airlines search and rescue and other emergency search and rescue work can not be separated from the company's technical support. At present, the company has accumulated the customer resources of SAIC-Volkswagen, Changan, Geely and other domestic first-tier automobile manufacturers, and the rich customer resources are expected to provide important support for the "Beidou car network".
Profit forecast and investment suggestions: in 2020, 2021 and 2022, the company is expected to achieve a net profit of 136 million yuan, 180 million yuan and 272 million yuan respectively, with a corresponding EPS of 0.28,0.37 yuan and 0.55 yuan respectively, and the PE of the corresponding stock price is 208.04 times, 157.4 times and 105.9 times respectively, maintaining the "overweight" rating.
Risk factors: the risk that the market penetration of Beidou is lower than expected, the risk of further increasing economic and trade and geo-friction between China and the United States, and the risk of declining net profit.
