The company released its quarterly report for 2020: in the first three quarters, the company achieved revenue of 2.795 billion yuan, an increase of 5.07% over the same period last year; net profit of 363 million yuan, up 24.34%; and net profit of 344 million yuan, up 1618.50% over the same period last year; basic income per share was 0.52yuan per share, up 7.95% over the same period last year; and the weighted average return on net assets was 5.84%, down 1.22% from the same period last year.
The growth accelerated in the second and third quarters, and the results showed greater flexibility. Affected by the epidemic in the first quarter, the company and its subsidiaries stopped work and production in accordance with the epidemic prevention requirements of local governments, resulting in the postponement of the projects originally scheduled to bid after the Spring Festival and the projects tracked in advance. At the same time, due to the reform of the price review and pricing model, the new pricing approval process is being gradually implemented, so that the contract prices of many new research equipment of the company have not been determined. Although the company has delivered its products, it cannot meet the conditions for revenue recognition for the time being, thus affecting the progress of revenue realization in the first half of the year.
From a quarterly point of view, 2020Q1 achieved a revenue of 307 million yuan, a decrease of 52.08% over the same period last year, and a net profit of-32.267 million yuan. After the resumption of work and production in the second quarter, the company achieved steady growth. 2020Q2 achieved an operating income of 1.44 billion yuan, an increase of 12.00% over the same period last year, and a net profit of 255 million yuan, an increase of 30.13% over the same period last year. 2020Q3 achieved an operating income of 1.047 billion yuan, an increase of 42.99% over the same period last year, and a net profit of 141 million yuan, an increase of 93.45% over the same period last year.
Gross profit margin fell slightly and net profit margin increased slightly. In the first three quarters of 2020, the company's comprehensive gross profit margin was 32.72%, down 0.84% from the same period last year; and the net profit rate was 13.00%, an increase of 0.97% over the same period last year. On a quarterly basis, 2020Q3's quarterly gross profit margin was 30.78%, an increase of 0.22% over the same period last year, and the quarterly net profit rate was 13.45%, an increase of 2.58% over the same period last year.
The costs of the three items have all decreased, and a large amount of investment in R & D has been maintained. In the first three quarters of 2020, the company's period expenses were 488 million yuan, a decrease of 2.04% compared with the same period last year, and the period expenses accounted for 17.45% of revenue, a decrease of 1.27% over the same period last year. The R & D expenditure was 219 million yuan, an increase of 33.52% over the same period last year, accounting for 7.83% of the operating income, an increase of 1.67% over the same period last year.
Profit forecast and investment advice. We maintain our profit forecast for the company. We estimate that the net profit from 2020 to 2022 will be $770,000,000, $912,000,000, respectively, and the EPS will be $1.081,28pm per share, corresponding to the closing price of PE on October 30, which is times that of 32-27-23, maintaining a "prudent overweight" rating.
Risk tips: equipment procurement demand is not as expected; the progress of asset integration is not as expected.
