Overview of events
On April 10, the company disclosed its 2020 annual report that the company realized operating income of 3.211 billion yuan in 2020, an increase of 45.57% over the same period last year, and a net profit of 315 million yuan, an increase of 191.95% over the same period last year.
The high growth of operating income + the decline of expenses during the period of high operating income + the rapid growth of the company's performance Dashi Intelligence's total revenue in 2020 was 3.211 billion yuan, an increase of 45.57% over the same period last year, and its net profit was 315 million yuan, an increase of 191.95% over the same period last year. The high performance increase is mainly due to the increase in operating income and gross profit margin, as well as the higher impairment loss of goodwill in 2019.
Operating income: the company's main composition is divided into products, services and solutions, accounting for 10% and 83% of the total revenue, respectively. Products and services are mainly independent products sold by the company to integrators or end customers. The solution is the overall solution that the company sells directly to customers. The overall solution will include independent products provided to customers.
Profitability: in 2020, the company's sales expense rate and management expense rate were 8.3% and 5.6% respectively, reducing 5.1pct and 1.7pct respectively. We speculate that the reduction in sales expenses is mainly due to the company's shift from project system to product type, while strengthening cooperation between head enterprises, resulting in an increase in customer unit price. in addition, the cost of sales activities such as travel, which was affected by the epidemic in 2020, has been reduced. The decrease in the rate of management expenses is mainly due to the strong management ability of the company, and the management expenses are the same as the previous year, so the expense rate is lower. In addition, the company's R & D expenditure rate is 2.5%, and R & D expenses increase by 54.3% compared with the same period last year. The company continues to invest in R & D of new products and new technologies.
Excluding the impairment loss of goodwill: the expense rate of achieving real intelligence in 2020 was 18.2%, a decrease of 7.5pct compared with the same period last year. The net interest rate is 9.74%. If the asset impairment loss in 2019 is excluded, the company's net interest rate in 2019 is 5.65%, which is higher than the same period last year. 4.09pct. The growth of operating income and the decline of expenses during the period are the core drivers of the company's performance.
Adhere to the SaaS + cloud platform model, take the reusable product business model, adhere to technological innovation to promote development: the company insists on innovation ability, on the one hand, through the establishment of an innovation division to provide services to key customers based on private cloud, to provide customized management of their building environment, extending from new projects to intelligent management and operation services of existing projects. On the other hand, a cloud technology subsidiary is set up to provide standardized, low-cost intelligent Internet of things construction and operation services for special standard application scenarios.
Future development direction: the company focuses on two points: 1) accelerate SaaS service for small and medium-sized customers, vigorously develop independent product business, accelerate cloud migration and SaaS service process, and provide standardized products and services for small and medium-sized customers. 2) accelerate the construction of cloud platform for group customers, increase the proportion of independent products in the overall solution, accelerate the construction of cloud platform, and provide intensive solution services for group customers.
At present, the company has launched AIoT intelligent Internet of things management and control platform v5.0, as well as operation and maintenance management platform. The company continues to upgrade its product structure, transform into a product company, and gradually realize the upgrading of enterprises from single projects to technology, products and service models. In the future, we will continue to build a cloud-based AIoT intelligent Internet of things management and control platform to support private deployment of cross-regional large group users and SaaS deployment of small and medium-sized customers.
There are plenty of on-hand orders and strengthen cooperation among leading enterprises in the field. The total amount of orders signed and won by the company in 2020 is expected to be 4.395 billion in 2021, an increase of 57.31% over the same period last year. The company will strengthen its cooperation with head company in subdivided fields in 2020: 1) data center, Shenzhen Lihe newspaper big data Center project with a contract of 325 million yuan; 2) Intelligent Transportation, Fuzhou rail transit project, Xiongan high-speed railway station intelligence project, Chengdu Metro Line 9 and other projects. 3) Smart Medical, signed the Suzhou Municipal Hospital project (234.9 million yuan), the Fifth affiliated Hospital of Sun Yat-sen University, West China Hospital, Meishan Hospital and other major intelligent medical projects. 4) Smart Building, signed by China Zun, Shang Bao Building, Ayre Ophthalmology and other projects. 5) Strategic cooperation, the company has successively signed strategic cooperation agreements with Shenzhen Investment Holdings Co., Ltd., Tencent Medical and other leading enterprises to promote the application and development of animal networking, cloud computing and other technologies in smart parks, smart medicine and other fields.
Development goal: in the future, the company will focus on commercial buildings, hospital buildings, subways and data center buildings, taking the lead in breaking through the commercial construction market and strengthening its own Internet of things solutions. Within three years, the goal is to focus on the development of the market in the Greater Bay area, strengthen the improvement and upgrading of independent products, comprehensively establish an intelligent benchmarking case for each market segment, start the SaaS service model, improve and upgrade the company's operation digital system; within ten years, form an independent product platform and project management platform, empower local integrators, comprehensively and rapidly cover the national market, and develop into a leading company in the building intelligence industry.
Investment suggestion
According to the booming AIoT of the company and the abundant orders on hand, we believe that the company's profitability will continue to grow, and the profit forecast will be updated as follows:
It is estimated that the company's revenue in 2021-2023 will be 440,000,000,000 yuan (compared with the previous estimate of $4.390.62 billion in 2022), the net profit of homing mother will be $450,000,000 ($435.8 million in 2022), and the earnings per share (EPS) will be $0.2332pm, which is highly recommended, corresponding to the PE of 16-12-9. Maintain a "buy" rating.
Risk hint
1) the advance of on-hand orders is not as expected; 2) the development demand of downstream industries is not as expected; 3) the downside risks of macro-economy.
