This report is read as follows:
The company is the intelligence port information leader, with the gradual recovery of the epidemic, the company will start high growth again.
Main points of investment:
Cover for the first time, give an overweight rating, with a target price of 179.04 yuan. From 2020 to 2022, the EPS of the forecast company is 2.08, 3.07 and 4.48 yuan respectively, and the target price is 179.04 yuan, corresponding to 15.42 times PS in 2021.
Overseas expansion superimposed domestic substitution, the company's development will exceed expectations. At the market level, look at overseas expansion; at the product level, look at domestic substitution. Overseas expansion is a big main line, which has been delayed by the epidemic and will be on the right track in the future. The developing regions such as Southeast Asia, the Middle East and South America, where the informationization of ports is not as good as that of China, will be the focus of future work. In terms of products, two years ago, Shengshi Technology began to lay out self-service security checks and began import substitution. At present, there have been landing cases.
Deeply ploughed the port market for 20 years. Founded in 1997, the company is one of the earliest enterprises to enter the port field in China. In the field of port passenger inspection, the company first created a passenger self-service inspection system in 2005 to achieve rapid self-help customs clearance and set a national precedent for port passenger self-service customs clearance; in the field of port health and quarantine, the company launched the intelligent quarantine inspection system to solve the problems of passenger temperature detection and precise interception for many years, realize self-service inspection, automatic early warning and interception, quickly isolate and intercept epidemic passengers, and ensure the safety of the country.
In addition to the impact of the epidemic in 2020, the company's revenue maintained a sustained high growth. The revenue growth rate of Shengshi Technology from 2017 to 2019 was 38.72%, 51.84% and 59.17%, respectively. Under the influence of the 2020 epidemic, revenue still maintained a growth rate of 24.13% in the first three quarters, verifying its business resilience. We believe that in the context of the recovery of the epidemic, the company's business will return to the high growth track.
Risk hint: the construction of Wisdom Port is delayed and overseas expansion is blocked.