First, the leading Internet of things platform service provider
The company is a provider of intelligent Internet of things data platform. The intelligent Internet of things data platform and UWB application are combined to provide customers with a multi-in-one industry comprehensive solution with the Internet of things development platform as the core, intelligent sensing terminal as supporting and big data operation as the service, which is widely used in financial couplet of things, public safety, intelligent justice and other industries. The main products include Internet of things platform, UWB products and public security big data products.
In terms of overall revenue and homing net profit, the company's income grew at a compound growth rate of 13.92% in 2015-2019. In the first three quarters of 2020, the company achieved 308 million yuan in revenue, down 20.93% from the same period last year, and the net profit attributed to the parent company was 7 million yuan, down 78.77% from the same period last year. The company's 2020Q3 revenue in a single quarter was 182 million yuan, an increase of 45.61% over the same period last year; the net profit attributed to the parent company was 50 million yuan, an increase of 200.32% over the same period last year. Affected by the epidemic in the first half of this year, business recovered rapidly in the third quarter, and business is expected to maintain recovery in the fourth quarter.
From the perspective of R & D investment and new products, R & D investment in 2019 increased by 42.82% compared with the same period last year, accounting for 8.81% of revenue. As a new business area of the company in recent years, the performance of UWB products and solutions has achieved rapid growth. In 2019, UWB achieved revenue of 63.41 million yuan, an increase of 222% over the same period last year.
2. UWB: the next trillion-level application market of the Internet of things
Compared with other positioning technologies, Ultra Wideband (UWB) wireless positioning technology has become the hotspot and first choice of wireless positioning technology in the future because of its low power consumption, good anti-multipath effect, high security and low system complexity, especially it can provide very accurate positioning accuracy.
The field of enabling is broad, and a variety of application scenarios are created. In the second half of 2019, Apple Inc launched iPhone11 with UWB chip, which became its key innovation technology of the year. In the future, UWB can be widely used in smart factories, logistics warehousing, smart buildings, smart parks, public security bureaus, procuratorates, courts and other scenarios to help B-end customers operate efficiently and safely in production. UWB is oriented to 2C areas of smart access control, location services and D2D applications, and can be used in smart home smart consumption industry, smart city smart transportation, smart retail and intelligent building industry and other fields.
The enterprise application market is huge, and the potential scale of UWB in the domestic enterprise application market can reach more than 128 billion yuan. It mainly includes judicial prisons, tertiary hospitals, mines, chemical plants, factories and warehouses and other application scenarios with high demand for material or personnel management. According to data from IoT Media, the market size of UWB positioning enterprise applications in China is 1.09 billion yuan in 2018, and is expected to reach 12.15 billion yuan in 2022, with a compound growth rate of 82.72 percent from 2018 to 2022.
Third, the company's product advantages
1, low-code intelligent Internet of things data platform: the application of advanced "low-code" technology to create dozens of business generation engines to achieve light development; an open platform with strong attributes of the Internet of things to achieve a comprehensive Internet of things; 2, the platform extends IoT management to business management and process management, opening up some light applications such as OA and ERP. 3. UWB series products: from the perspective of product categories, the company provides customers with all kinds of products, such as UWB mobile phones, UWB bracelets, tags and other intelligent terminal products; from the perspective of technology extensibility, the company has the advantage of the layout of the whole industry chain. The company joined the FiRa Alliance of UWB International Alliance in the first half of 2020, and invested in domestic enterprises involved in UWB chips, realizing the layout of the whole UWB industry chain from "chip-module-product-platform-application".
Fourth, profit forecast and valuation
It is estimated that the company's net profit from 2020 to 2022 is 1.68,2.12 and 275 million yuan respectively, corresponding to 48,38 and 30 times. Comparable company has an average valuation of more than 60 times in 2021, giving the company a valuation of 50 times PE in 2021, corresponding to the target price of 15.50 yuan, covering the "overweight" rating for the first time.
Risk hint: low-code Internet of things platform development is not as expected; UWB industry development is not as expected; competition intensifies
