Events:
The company issued a forecast of the results of the report: in the first half of 20 years, the company is expected to achieve a net profit of 90 million yuan to 105 million yuan, an increase of 10.85% over the same period last year, 29.32%, exceeding market expectations.
Comments:
The net profit in the second quarter hit an all-time high. Affected by the epidemic this year, the company achieved a net profit of 25 million yuan in the first quarter, down 31% from the same period last year. According to the performance forecast, the net profit of 66 million yuan to 81 million yuan will be realized in the second quarter, a substantial increase of 43% and 75% over the same period last year. The lower limit of the performance forecast, the corresponding Q2 net profit will reach 66 million yuan, setting a record high for a single quarter. According to the median forecast, the net profit of Q2 was 73 million yuan, an increase of 59% over the same period last year. The company's second-quarter results exceeded market expectations, which we believe is mainly due to the rapid recovery of business activities in the second quarter, steady growth in the garage sector, and continued improvement in profit margins.
With the increase of policy, smart parking is on the fast track of "new infrastructure". In recent years, the state has issued a series of policies to encourage and support the development of parking industry from the aspects of financing, planning, construction, management and so on.
In 2019, at a series of meetings of the Central Committee and the State Council, the construction of urban parking lots became an important part of the "new infrastructure" and "deficiency board" projects. With the accelerated pace of the construction of the standard system of the parking industry and the continuous improvement of relevant laws and regulations, three-dimensional intelligent parking is not only conducive to solving urban planning problems such as parking difficulties and land scarcity, but also further activate market vitality and promote investment. Leading companies are expected to concentrate their advantages and develop rapidly in the industry wave.
With the help of fixed increase, the company's operation and R & D capabilities will be further improved. In May 20, the company completed a fixed increase, raising 760 million yuan through a non-public offering of 143 million shares to no more than 35 specific investors. This fundraising will help the company focus on the strategic positioning of "intelligent building + parking resources + Internet", improve and extend the industrial chain layout of the parking industry, improve the layout of production bases and the application of Internet technology.
Investment advice: the company continues to improve, the second quarter results exceeded expectations, we raised the company's 20-22 performance expectations to 210 million, 270 million and 330 million (previously expected to be 180 million, 220 million, 270 million), corresponding to the PE of 29 times, 23 times and 18 times, respectively, the company will be given a 21-year 30 times PE, corresponding to the target price raised to 9.30 yuan (previously 7.80 yuan), maintaining the "buy" rating.
Risk hint: the development of the parking industry is not as expected, the company's parking space business is not as expected, and the policy support is not as expected.
