Events:
The company released its third quarter report 2022 after the close on October 25, 2022.
Comments:
In the first three quarters, the company's revenue increased by 27.50% over the same period last year, and its net profit increased by 30.50% over the same period last year. In the third quarter of 2022, the company realized operating income of 85 million yuan, an increase of 21.31% over the same period last year; in the first three quarters, operating income reached 235 million yuan, an increase of 27.50% over the same period last year. The main reason is that the company focuses on mining business, and the related business has increased significantly over the same period last year. The company achieved a net profit of 6.6468 million yuan in the third quarter, an increase of 20.12% over the same period last year, and a total net profit of 24.8046 million yuan in the first three quarters, an increase of 30.50% over the same period last year. In terms of cash flow, the net cash flow generated by the company's operating activities in the first three quarters was 28 million yuan, an increase of 865.36% over the same period last year, mainly due to a substantial increase in cash received from the sale of goods and services; the net cash flow from fund-raising activities was 16 million yuan, down 86.74% from the same period last year, mainly due to the receipt of 148 million yuan of net funds raised from stocks issued to specific targets in the same period last year. The net cash flow generated by investment activities is-41 million yuan.
The demand for informatization in coal enterprises continues to rise, and the company seizes the opportunity to actively carry out related business in June 2021, the State Energy Administration, together with relevant departments, has successively issued the guidelines for Intelligent Construction of Coal Mine (2021 Edition) and the implementation Plan of 5G Application in Energy Field, proposing to carry out intelligent construction of coal mines in a scientific, standardized and orderly manner, and speed up the construction of a number of intelligent coal mines of various types and different modes. It is pointed out that in the next 3-5 years, we will expand a number of typical application scenarios of 5G around intelligent coal mines, make use of the technological advantages of 5G to build network basic systems, and build infrastructure such as intelligent coal mine fusion management and control platform. create a "cloud-edge-to-end" architecture of the Internet of things in the mining industry, and promote the construction of intelligent coal mines. Driven by the macro policy, the demand of coal enterprises for production safety and information construction continues to rise, which has played a positive role in promoting the development of the company's mining business. The company actively responded to the needs of coal enterprises, focusing on coal intelligent construction, comprehensive automation, accurate positioning and other business. In the first half of 2022, new orders totaled 253 million yuan, an increase of 55.97% over the same period last year, laying a good foundation for the future development of the company.
Selected as the "Top 20 Information Technology Enterprises in the 2022 Coal Industry", the brand image has been further enhanced to implement the spirit of the "14th five-year Plan for Digital Economic Development", promote the digital transformation and upgrading of the coal industry, cultivate the information technology plate of the coal industry, and build the industrial ecology of the coal digital economy. China Coal Industry Association has organized the honorary recognition of the "Top 20 Information Technology Enterprises in the 2022 Coal Industry". According to the company's official Wechat official account, recently, after the China Coal Industry Association conducted a special investigation and evaluation of all kinds of information technology enterprises serving the digital development of the coal industry across the country, the company was successfully selected into the "Top 20 Information Technology Enterprises in the Coal Industry in 2022" and won the honorary certificate.
Profit forecast and investment suggestion
With its solid mine products and sales service ability, the company has formed a first-mover advantage in the new track of intelligent mines and has a broad space for growth. Considering the operating situation of the first three quarters, the company adjusts its operating income forecast to 4.89,7.38 and 1.055 billion yuan from 2022 to 2024, adjusts its net profit forecast to 0.50,0.85 and 143 million yuan, EPS is 0.27,0.45,0.76 yuan per share, and PE is 44.90,26.48,15.75 times. In the past two years, the company's PE TTM (excluding negative values) is mainly between 55 and 95 times, adjusting its target PE to 60 times in 2022, with a target price of 16.20 yuan. Maintain a "buy" rating.
Risk hint
The risk of repeated COVID-19 epidemic; the risk of macroeconomic environment and periodic fluctuations in the coal industry; the risk of market development in new application areas; the risk of failure of technological innovation; the risk of bad debts in accounts receivable.