Event: the company intends to use its own funds to buy back the common shares of the company by means of centralized bidding. The price of A shares is no more than RMB 17.46 per share, and the total capital is not less than RMB 50 million and no more than RMB 100 million.
The company's promotion of buyback demonstrates its confidence in development, and its business performance in 2021 is expected to continue to improve. According to the maximum repurchase amount of 100 million yuan and the repurchase price ceiling of 17.46 yuan per share, it is estimated that the number of repurchased shares is about 5.73 million shares, accounting for about 2.65% of the company's current total share capital. In 2020, under the influence of COVID-19 epidemic, rising trade protectionism, exchange rate fluctuations and other factors, the company's annual income still achieved positive growth. In the second half of 2020, the company's performance recovered significantly, with revenue rising 18.87% in the third quarter and 8% in the fourth quarter compared with the same period last year. 2021 is the year of the company's products, the pace of promotion and listing of temperature products has been accelerated, and the company will actively open up the markets of medicine, universities and scientific research institutions.
Sustained high R & D investment will contribute to the company's long-term growth. The company's R & D investment continued to increase in 2020, accounting for more than 24% of R & D revenue, and the size of R & D team increased by 21% compared with the same period last year. The pressure and temperature testing instrument industry that the company is engaged in has certain technical barriers and requires continuous high R & D investment. We review the development process of global instrument leaders such as Thermo Fisher Scientific Inc and Danaher Corp. Through continuous R & D investment and establishing a strong market position and brand power in the corresponding subdivisions, we can build a broad moat for the company. win long-term growth space and stable cash flow.
The high-end customers of the company's products are of high quality, and the import substitution space is huge. The company's main competitors are Fluke, Druck, WIKA and other European and American enterprises, domestic high-end products import substitution space is huge. The company's customers are high-end, and domestic customers include provincial and municipal metrology institutes, automobile companies, railway groups, medical institutions, research institutions, food and beverage enterprises, etc., while overseas customers include BMW, Mercedes-Benz and other automobile enterprises. Pfizer Inc Pharmaceutical, Bombardier, Airbus, Shell, Coca-Cola Company and other leading enterprises.
Company profit forecast and investment rating: we expect the company's operating income from 2020 to 2022 to be 293 million yuan, 397 million yuan and 545 million yuan respectively; the net profit returned to the parent is 68 million yuan, 105 million yuan and 148 million yuan respectively; EPS is 0.31,0.48 yuan and 0.68 yuan respectively, corresponding to PE 35.70X, 23.03X and 16.20X respectively, maintaining the "highly recommended" rating.
Risk tips: 1, production expansion and MEMS project construction are not as expected; 2, downstream demand is not as expected.
