This report is read as follows:
The company is a front-line supplier of Internet of things modules, extending to downstream terminals and solutions. The company has the advantages of product technology and customers, and is expected to benefit from the smart meter replacement cycle and the expansion of the vehicle networking market to restore the high revenue growth stage.
Main points of investment:
For the first time, the target price is 52.25 yuan, which is rated as "overweight". It is estimated that the operating income from 2020 to 2022 is 676, 1343, 1.935 million yuan, and the net profit is 0.09, 0.87 and 1.25 million, corresponding to the EPS of 0.10, 0.94 and 1.36, respectively. Considering the average valuation of the same industry and the company's core competitive advantage, it will be given 55 times PE in 2021, corresponding to the target price of 52.25 yuan.
Based on the wireless communication module, the company actively expands the downstream terminal + solution field. At the initial stage of the development of the company, the main business is mainly wireless communication module, and the business income of the module accounts for more than 90% before 2017. As the company cuts into other Internet of things scenarios such as the Internet of things, the company's business gradually extends to the lower reaches of the industrial chain, with a significant increase in terminal revenue, which reached 28.67% at the end of 2019. It is expected that the company will continue to make breakthroughs in terminal products on the basis of steady growth of module business in the future.
With the rapid development of the Internet of things industry, the company focuses on the layout of smart energy and vehicle networking. The global Internet of things market is expected to grow to US $1.7 trillion in 2020, with a compound annual growth rate of 17% and rich application scenarios. The company mainly focuses on smart energy and vehicle networking. From 2016 to 2018, the product revenue of the company applied to the smart grid is 131 million yuan / 357 million yuan / 307 million yuan respectively, and the shipments of 4G wireless communication modules account for more than 50% of the total tender procurement of the State Grid.
The company's 4G intelligent OBD products are rapidly expanding in the overseas vehicle networking market, covering many overseas power grid industry customers and vehicle networking customers, such as Harman, CPON and so on.
Catalyst: smart meter replacement cycle, on-board OBD permeability increase
Risk tips: the company's product research and development and industrialization are not as expected, the risk of the loss of core technical personnel and the loss of core technology, and the risk of intensified competition in the industry.
