Event

On April 30, the company released its annual report for 2019, with operating income of 852 million yuan, down 5.99% from the same period last year, and net profit of-234 million yuan. The company released the quarterly report for 2020, with operating income of 130 million yuan, down 30.46% from the same period last year, and net profit of 18.6 million yuan, down 19.61% from the same period last year.

Comment

The traditional business declined, the satellite big data business made a breakthrough, and the provision of goodwill led to losses.

In 2019, the company achieved operating income of 852 million yuan, down 5.99% from the same period last year, and achieved a net profit of-234 million yuan. The loss is mainly due to the impairment provision of about 219 million yuan for the goodwill generated by the acquisition of Platinum and about 61 million yuan for the impairment of goodwill from the acquisition of Intelligent Construction Company.

The company's traditional business such as integrated circuit, security, surveying and mapping, big data operation and maintenance declined, and satellite big data business made a breakthrough. In 2019, the satellite big data business achieved 72.45 million yuan in revenue, a substantial increase over the same period last year.

Draw up additional layout artificial intelligence chips and other fields

The number of shares to be issued by the company will not exceed 210 million shares, and the total amount of funds raised shall not exceed 1.729 billion yuan, which will be used in the development and industrialization of artificial intelligence chips, high reliable data storage chip projects, artificial intelligence detection, detection equipment development and intelligent drainage management and control platform production projects. After the implementation of the above projects, it will help the company to integrate internal resources, optimize the industrial structure and layout, realize the upgrading and transformation of the main business, enhance the comprehensive efficiency of the company's products, and enhance the company's core competitiveness.

Zhuhai SASAC has become the actual controller of the company, which is expected to promote the business development of the company.

On November 22, 2019, Gree Capital signed a share transfer agreement with Xinyu Investment, Golden Eagle Fund and Jinyuan Shun'an respectively, transferring 53071522 shares of listed companies held by Xinyu Investment, Golden Eagle Fund and Jinyuan Shun'an, accounting for 7.56% of the total share capital of the listed company. The share transfer price is 15.47-15.63 yuan per share. At the same time, Yan Jun gave up some of his voting rights. Gree Golden Investment has become the controlling shareholder of the company, and Zhuhai SASAC will become the actual controller of the company. In the follow-up, Gree Capital Investment will further consolidate its control over listed companies by exercising shareholders' rights and adjusting the company's board of directors, board of supervisors and senior executives.

After GLJI becomes the controlling shareholder of the company, it will help to further enhance the company's industry status and competitiveness, enhance the company's profitability and anti-risk ability, and achieve a good situation of common development of the mixed ownership economy of state-owned capital and private capital, which is expected to promote the development of the company's satellite remote sensing and other businesses.

Profit forecast and investment suggestions: Zhuhai State assets Holdings promotes the business development of the company. Satellite big data has a wide application space and maintains the "overweight" rating.

As the flagpole enterprise of China's high-end aerospace processor SoC and the pioneer of three-dimensional packaging SIP aerospace module / system, Obit has a leading position in the industry; the company aims at the future industrial development trend and national policy guidance, the layout of remote sensing satellite big data business, the future market space is broad. It is estimated that the return net profit of the company from 2020 to 2022 is 1.51,2.18 and 294 million yuan respectively, and the corresponding EPS for 20 to 22 years is 0.21,0.31 and 0.42 yuan respectively, and the corresponding share price PE is 51,36 and 26 times respectively.