Events:
The company released the third quarterly report of 2020: the company realized operating income of 1.01 billion yuan in the first three quarters, + 15% of the same period last year, and net profit of 135 million yuan, + 12% of the same period last year. Among them, the net profit of Q3 is 44 million yuan, + 12% compared with the same period last year.
Comments:
Q3's performance grew steadily. Q3 achieved revenue of 360 million yuan, + 12% year-on-year, 320 million yuan in the same period last year; Q3 net profit was 44 million yuan, + 12% year-on-year, and 39 million yuan in the same period last year. Q3 currency funds were 270 million yuan, a sharp increase of 117% over the same period last year, mainly due to the fixed increase of funds raised and the substantial optimization of the company's cash flow.
Joint venture to set up Wuyang Wisdom (Chengdu) to expand the business area deeply. In September, the company's board of directors passed a motion allowing the company to invest 210 million yuan to jointly establish Wuyang Wisdom (Chengdu) with Sichuan Bozhong, with a 70% stake in the company. The joint venture company mainly carries out related parking investment and operation business in Chengdu and related areas, focusing on city-level smart parking projects, which will help the company to dig deep into the Chengdu market, and is expected to further expand the southwest market in the future.
With the increase of policy, smart parking is on the fast track of "new infrastructure". In recent years, the state has issued a series of policies to encourage and support the development of parking industry from the aspects of financing, planning, construction, management and so on.
In 2019, at a series of meetings of the Central Committee and the State Council, the construction of urban parking lots became an important part of the "new infrastructure" and "deficiency board" projects. Since 2020, Heilongjiang, Shandong and other provinces have issued smart parking support policies; in the first three quarters, a total of eight parking special bonds have been issued nationwide, while a large number of special bonds such as infrastructure and park infrastructure have been invested in parking projects. Leading companies are expected to concentrate their advantages and develop rapidly in the industry wave.
Pay close attention to the green development trend and reserve new energy charging technology. In September, the National standing Committee adopted the Development Plan of New Energy vehicle Industry, proposing to strengthen the construction of infrastructure such as charging and recharging, and give financial support to the construction of charging piles as public facilities. In order to cope with the development trend of new energy vehicles, the company has developed the charging technology of three-dimensional garage of new energy vehicles, which can match the carrying board of the company's intelligent three-dimensional garage, and is expected to enhance the parking demand of new energy vehicles for three-dimensional garages.
Investment suggestion: we expect the 20-22 net return to be 210 million yuan, 270 million yuan and 330 million yuan respectively, corresponding to 30 times, 24 times and 19 times of PE, respectively.
Risk hint: the development of the parking industry is not as expected, the company's parking space business is not as expected, and the policy support is not as expected.
