The company Q3 maintains steady growth, strengthens research and development efforts to consolidate the leading edge of the traditional port information business, and actively promotes the business layout of smart airports and other new areas. Smart port leader, deep competition barriers, maintain the "highly recommended-A" investment rating.
Event: the company released its quarterly report for 2020, Q1-3 achieved revenue of 635 million yuan, YoY + 24.13%; net profit of 154 million yuan, YoY + 13.54%; deduction of non-return net profit of 140 million yuan, YoY + 9.35%. The performance is in line with expectations, and the investment in R & D has increased. The company Q3 achieved revenue of 197 million yuan in a single quarter, YoY + 26.31%, net profit of 38 million yuan and YoY + 4.54%. The growth rate of net profit is lower than that of income, which is due to the slight decline in gross profit margin (down 3.61 pct from the same period last year) and the increase in R & D investment (YoY + 45.26%, 1.49 pct higher than the same period last year). The decline in the company's single-quarter gross profit margin is due to the revenue recognition of large-scale projects at Guangdong-Hong Kong-Macau Greater Bay Area Wisdom Port (generally speaking, the gross profit margin of large-scale projects is lower than that of small and medium-sized projects). The company always adheres to the independent research and development of basic technology and core technology, and the increase of R & D investment is conducive to the further polishing of leading products and the iterative and large-scale landing of new products.
We will strengthen the leading advantages of smart ports and promote the layout of smart airports and other new areas. The company has steadily expanded in the field of smart ports, undertaking many projects in the first half of the year, including Sichuan Luzhou Airport Port and Xinjiang Yining Airport Port, further consolidating its leading position in the market. In addition, the company continues to launch new products according to the pain points of port customers, and a number of products landed in the first half of the year have been highly recognized by customers, and it is expected to achieve large-scale sales at national ports in the future. In the field of smart airport, the company has made business breakthroughs in a number of application scenarios. In the first half of the year, the core product independent security check system was approved for use at Kunming Changshui Airport, with the largest scale of the civil aviation airport; the transit system was officially put into use in the Capital Airport T3, while the Shanghai Pudong International Airport T2 construction project was undertaken; and the Hong Kong Airport passenger Inspection Corridor project was put into use.
Maintain the "highly recommended-A" investment rating. It is estimated that the net profit of return to the mother in 20-22 will be 2.57 pounds 3.37 / 466 million yuan. Smart port navigator, with deep competition barriers, deeply benefits from port informatization and intelligent airport industry development dividend, and maintains a "highly recommended-A" rating.
Risk hint: the new business expansion is not as expected, and the industry competition aggravates the risk.