The results of the three quarterly reports were in line with expectations, and the effect of reducing fees and improving efficiency was remarkable. The "increased holding" rating company announced its results in the third quarter of 2020, with revenue of 6.237 billion yuan in the first three quarters, up 3.30 percent over the same period last year, and net profit of 298 million yuan, up 12.35 percent over the same period last year. The net profit after deduction was 249 million yuan, up 0.64% from the same period last year. In the third quarter of 2020Q3 alone, the company achieved revenue of 2.353 billion yuan, an increase of 17.34% over the same period last year, which was further expanded compared with 2020Q1 and 2020Q2. The net profit of returning home was 119 million yuan, an increase of 25.10% over the same period last year. The company's gross profit margin continued to rise in the first three quarters of 2002, reaching 14.73% from January to September 2020, and the net profit margin rose 0.32pct to 5.03% compared with the same period last year. The expense rate during the single quarter of 2020Q3 has been significantly reduced, of which the management expense rate decreased by 1.81pct to 1.84% compared with the same period last year, the sales expense rate decreased by 0.62pct to 1.77%, and the R & D expense rate decreased by 1.06pct to 3.88% compared with the same period last year. On this basis, we maintain the forecast that the company 2020, 2021, and 2021 will achieve a net profit of 4.39, 571, 000. On this basis, we maintain a forecast that the company's net profit will be 4.39 cusp 5.71 million yuan in 2022, with an increase of 41.3 percent, 30 percent, 17.3 percent, 0.57 percent, 0.74 percent, 0.86 yuan and 13.5 times, respectively, with a certain valuation advantage, maintaining the "overweight" rating.
5G+WIFI-6 demand pull up, the company as the head of the communications terminal enterprise priority income, the company's performance is expected to improve marginally
The company is a full-range broadband access equipment ODM business, and develops EMS services and small base station services. The main communication terminal business accounts for more than 80% of the company's operating income, and the production line is rich. The company began to lay out the construction of 5G small base stations in 2017, and worked closely with China Mobile Limited in 2018 to complete the research and development of millimeter wave integrated hardware prototype of 5G small base stations in 2019, and entered the prototype debugging stage. The company actively promotes 10GPON products combined with WiFi-6 and has been steadily shipped at home and abroad. As 5G puts forward new and higher performance requirements for communication equipment, the communication network, platform and terminal equipment will achieve a new round of large-scale upgrading, superimposed with the promotion of Wifi-6 and the rapid construction of 5G new infrastructure, the scale of broadband communication terminals and mobile communications will usher in further growth, and the company will usher in new development opportunities. According to data from the Ministry of Industry and Information Technology, China's base station construction plan in 2020 was reached one quarter ahead of schedule. With the acceleration of 5G construction process and increasing commercial certainty, the market space for small base station products with deep coverage is expected to usher in a golden period of development. With the continuous expansion of the company's 5G and WIFI-6-related products, the company's operating performance is expected to exceed expectations.
Risk hint: raw material price fluctuation risk; innovation transformation and development is less than expected risk