In 2020, the company achieved operating income of 577 million yuan, an increase of 22.38% over the same period last year, a net profit of 80.61 million yuan, an increase of 1657% over the same period last year, and a net profit of 50.6 million yuan, an increase of 356% over the same period last year.
In a single quarter, Q4's operating income was 255 million yuan, an increase of 50.10% over the same period last year, and its net profit was 29.74 million yuan, an increase of 921% over the same period last year.
The completion of Bei San promotes upgrading, and Beidou navigation terminals and operations are growing at a high speed. In July 2020, the Beidou 3 satellite navigation system was officially launched, with breakthroughs in coverage, positioning accuracy, timing accuracy and other key indicators, and the satellite navigation market ushered in the opportunity of upgrading. The company seized the opportunity of development, broke through a number of key technologies of Beidou No. 3 core products, achieved the first results in the evaluation of various models of terminals, and achieved growth in sales of vehicle, handheld, airborne, shipborne equipment and Beidou modules. new products such as emergency terminals and intelligent monitoring terminals have been launched. In 2020, the company's revenue from Beidou navigation terminal and operating business was 251 million yuan, an increase of 60.3% over the same period last year.
Focus on breaking through the core technology of integrated circuits and seize the opportunity of localization. According to the statistics of the Semiconductor Association, the average compound growth rate of China's integrated circuit industry from 2015 to 2020 is about 20%, which is three times the global growth rate. Localization has brought development opportunities for domestic enterprises with core technologies.
In 2020, the company focused on breaking through the core technologies such as radio frequency transceiver, high-speed signal, interface and converter, and realized basic circuit business income of 208 million yuan, an increase of 26.44% over the same period last year.
The income structure was adjusted and the gross profit margin increased. In 2020, there were some adjustments in the company's revenue structure, first, because integrated circuits, Beidou terminals and operating businesses with relatively high gross margins in the main business achieved rapid year-on-year growth of 26.44% and 60.30%, respectively. Second, due to the impact of the epidemic, the company concentrated its efforts on ensuring the progress of key security monitoring projects and developing high-quality projects, and its business gross profit margin increased to 34.22% from 23.63% in 2019. As a result, the company's overall gross profit margin increased to 53.99% from 50.35% in 2019, contributing to performance growth.
Profit forecast: the company's operating income in 2021-2023 is expected to be 6.93,8.45,1.044 billion yuan, the net profit returned to the mother is 1.04,1.28,157 million yuan, EPS 0.19,0.23,0.28 yuan, and the corresponding share price PE is 84.12,68.52,55.96 times. The company has Beidou Navigation complete industrial chain layout and integrated circuit core technology, benefiting from the development of Beidou Navigation and integrated circuit market, covering for the first time, giving "overweight" rating, with a six-month target price of 17 yuan.
Risk hint: systemic risk, Beidou navigation business expansion is not as expected, company shareholder litigation risk, profit depends on government subsidy risk.
