[investment points]
The company released three quarterly reports, with revenue of 1.47 billion yuan in the first three quarters of 2020, down 32.1% from the same period last year, and net profit of-120 million yuan, down 290.2% from the same period last year. The deduction of non-net profit was-150 million yuan, down 437.6% from the same period last year. In addition, the company estimated its annual operating performance because of the outbreak of the COVID-19 epidemic and fluctuations in the economic environment at home and abroad since 2020. as a result, the company's production, sales and customer delivery have been greatly affected, and the cumulative net profit for the whole year of 2020 is expected to be a loss.
In the period of strategic adjustment, the performance continues to be under pressure. Affected by COVID-19 's epidemic situation and the company's strategic adjustment, the company achieved revenue of 530 million yuan in the third quarter, down 3.4% from the same period last year and 5% from the previous quarter. The net profit of returning home in the single quarter was-58.626 million yuan, up 52.9% from the same period last year and down 2846.7% from the previous quarter. There is some pressure on the company's performance in the short term, so it is suggested that we should continue to pay attention to the overall profitability of the enterprise.
The gross profit margin has declined, and the rate of R & D expenditure has increased steadily. During the reporting period, the company's gross profit margin was 26.1%, down 3.5 pct from the same period last year; in terms of expenses, the company's sales expense rate / management expense rate / financial expense rate / R & D expense rate in the first three quarters of 20 years were 12.2%, respectively, 11.1%, 1.2%, 16.9%, respectively, and YOY was + 3.61pctmax, 3.99pctlead, 1.22pctpct, 2.68pct; overall, the company's expense rate was 39%, an increase of 11.5pct over the same period last year. Under the influence of gross profit margin and expense rate, the company's net profit rate in the first three quarters was-8.6%, down 11.37pct from a year earlier.
Reach a cooperation with Tencent Cloud to further focus on vehicle networking business. Signed the Tencent Cloud and Gao Xinxing Strategic Partnership Agreement with Tencent Yun in Guangzhou, and reached a strategic partnership in the fields of intelligent network connection of new infrastructure, intelligent travel, intelligent transportation, smart city, intelligent inspection robot and so on. The company will carry out long-term technical and business cooperation with Tencent Cloud in the above areas by jointly opening up local regional markets, technical cooperation, joint declaration of science and technology projects, etc., give full play to the respective advantages of high-tech Internet enterprises and senior enterprises in the transportation industry, and combine to form an effective technical alliance, which will help the company to build ecological cooperation with Internet companies and accelerate the business landing of the company's car networking, intelligent Internet connection and other sectors. Enhance the company's comprehensive competitiveness and promote the further focus of the company's vehicle networking strategy.
The release of the fixed increase plan will enhance the company's core competitiveness. During the reporting period, the company issued a plan for Dingzeng to issue shares of no more than 30% of the total share capital before the issue and raise no more than 1.828 billion yuan for intelligent manufacturing base, intelligent rail transit industrial base and other projects. At present, the company is mainly engaged in production and processing, and the construction of an intelligent manufacturing base will help to strengthen the integration of the supply chain, match the needs of future business expansion, enhance the overall production and R & D level of the company, and enhance the core competitiveness.
[investment advice]
The company has been committed to the research and development of core technologies of the Internet of things and the expansion of industry applications, such as perception, connection, platform, etc., and is currently in the stage of further focusing on strategy and resources, focusing on the two vertical application areas of networking of focus vehicles and standardization of law enforcement, starting from the downstream industry application of the Internet of things, based on general wireless communication technology and ultra-high frequency RFID technology, integrating big data and artificial intelligence technology. Realize the strategic layout of vertical integration of "terminal + application" of the Internet of things. In recent years, the company has been greatly affected by the epidemic, and its short-term performance is under pressure. in the future, the company is expected to return to the growth track through strategic integration and focus. It is estimated that the company's revenue from 2020 to 2022 will be 2.45 billion yuan, 2.360, 2.595 billion yuan, respectively, and the net profit will be-2.05, 0.42 and 115 million, respectively, and the EPS will be-0.12, 0.02, 0.07 and corresponding to PE, respectively, which will be 71 times of the company's future performance. We are cautious about the company's future performance and will be given the rating of "overweight".
[risk Tip]
The development of car Internet industry is not as good as expected.
The development of intelligent transportation is not as expected.
The effect of the company's strategic adjustment is not as good as expected.