Core ideas:
1. Event
The company released the 2020 annual report, achieving revenue of 1.76 billion yuan, an increase of 13.93% over the same period last year, and a net profit of 262 million yuan, an increase of 23.6% over the same period last year, deducting 254 million yuan of non-return net profit, an increase of 23.99% over the same period last year.
2. Our analysis and judgment
(1) performance growth is in line with expectations, and revenue is expected to grow faster next year. For the whole of 2020, the company's operating income and home net profit increased by 13.93% and 23.6% respectively compared with the same period last year, and the performance growth rate was basically in line with expectations. We believe that the high growth of the company's performance is due to the rapid growth of the consumer electronics, logistics sensor and military business, of which the military business revenue has increased by 34.45% and the logistics sensor revenue has increased by about 6 times compared with the same period last year.
In addition, benefiting from the company's meticulous management, in the case of high R & D expenditure rate, the company's expenditure rate decreased year by year, and decreased 2.48pct in 2021 compared with the same period last year.
Looking forward to 2021, we believe that with the gradual release of production capacity, the company's consumer electronics business and logistics sensor business will continue to maintain rapid growth, with an estimated growth rate of 62% and 100% respectively. In addition, the release of downstream military models will drive the company's military business to maintain rapid growth, which is expected to reach 30%. The company's revenue growth rate is expected to increase to 18.86% in 2021, which will lead to faster growth in performance.
(2) domestic mechanical sensor leader, multi-point blooming and generating income with the accelerated installation of new aircraft and the acceleration of the professional development of aviation airborne equipment, the company's intelligent power distribution system, cockpit control subsystem and helicopter suspension delivery system and other business will usher in broad development prospects, and is expected to maintain a high growth rate in 2021.
As a leading enterprise in the field of strain measurement and control, the company pays equal attention to "endogenesis and extension" in recent years, and has been committed to the transformation and upgrading of traditional business in order to achieve coordinated development in many fields. At present, the company is comprehensively developing in the direction of Internet of things and intelligence, actively expanding the application areas of consumer electronics, intelligent logistics, Internet of things, intelligent manufacturing and environmental protection, and has made breakthroughs in the first two fields. In addition, in order to enhance the supporting level of business and bargaining power, the company has actively expanded to the lower reaches of the industrial chain, contingency measurement and control business has been gradually transformed and upgraded to system-level product suppliers, and the future growth space has been further opened.
(3) employee stock ownership shows confidence and contributes to the long-term development of the company
On July 22, 2020, the 545.8 million shares repurchased by the company have been transferred to the special account of the first phase of the employee stock ownership plan, accounting for 0.92% of the total share capital. The transfer price is 9.25 yuan per share, and the ban will be lifted in July 2021. We believe that the successful implementation of the employee stock ownership plan is an important exploration for the company to further improve the corporate governance structure, improve the corporate incentive and restraint mechanism, and ensure the sustainable development of the company during the critical period of business transformation and upgrading. At the same time, the measure also reflects the core staff's affirmation of the intrinsic value of the company and their firm confidence in the future development, and the enthusiasm of investors is expected to increase.
3. Investment advice
It is estimated that the return net profit of the company from 2021 to 2023 is 351 million, 443 million and 556 million respectively, and the EPS is 0.59,0.75 and 0.94 yuan, respectively. The current stock price corresponds to 20.9x, 16.5x and 13.2x.
The company's military and civilian business has made concerted efforts, showing a good situation of multi-point flowering and going hand in hand as a whole, the sustainability of the company's future performance growth has been enhanced, and the "recommended" rating has been maintained.
Risk Tip: the risk that business orders for military and civilian products are not as expected.