Performance summary: the company achieved revenue of 680 million yuan in 2020, an increase of 32.4% over the same period last year, and the net profit belonging to the parent company was 180 million yuan, an increase of 48.9% over the same period last year.
The business of digital intelligence transformation continues to make efforts, and the company's revenue maintains a high growth trend. Year 2020: 1) Revenue side:
The company's revenue increased by 32.4% over the same period last year; from the perspective of orders, the company signed 1 billion yuan in new orders in 2020, an increase of 65.5% over the same period last year; as of December 31, 2020, the company had orders in hand of 820 million yuan, an increase of 23.7% over the same period last year. From the perspective of business, the revenue of the company's smart environmental protection business was 410 million yuan, an increase of 35.1% over the same period last year, while that of the smart city business was 260 million yuan, an increase of 46.3% over the same period last year. 2) profit side: the company's home net profit increased by 48.9% compared with the same period last year; the company's gross profit margin was 43.6%, which decreased 4.6pp compared with the same period last year, mainly because the state recently advocated new infrastructure, which led to the rapid growth of the perception of the main business and the construction of the platform. Most of the new infrastructure projects were general contracting business, and there were more acquisition and access costs of third-party smart equipment, resulting in a reduction in project gross profit margin. The company's net interest rate was 26.1%, an increase of 3.0pp over the same period last year. 3) in terms of expenses: the company's sales expense rate was 4.9%, up 0.5 ppm from the same period last year; the management expense rate was 8.0%, down 1.1 ppm from the same period last year; and the R & D expense rate was 9.0%, little change compared with the same period last year.
Smart environmental protection business continues to benefit from the high prosperity of the industry, and technological advantages provide long-term driving force for the company's growth.
The company's intelligent environmental protection business has become an important driving force for the company's performance growth. Because the environmental protection data is externalized naturally, and the solution of environmental protection problems involves many departments such as environmental protection, housing construction, transportation and sanitation, the company chooses intelligent environmental protection as the flow entrance. and then gradually achieve the goal of extending from smart environmental protection to smart city.
According to the data of forward-looking Industrial Research Institute and China Business Industrial Research Institute, the market size of China's intelligent environmental protection industry reached 58.5 billion yuan in 2019 and is expected to exceed 65 billion yuan in 2020. We believe that the company is expected to continue to benefit from the boom in the industry. The company attaches importance to R & D investment, makes use of the accumulation and technology accumulation of big data application industry of the Internet of things, seizes the policy opportunity of new infrastructure, and continues to expand R & D investment, which forms a strong guarantee for the company's future market expansion and business development.
Profit forecast and investment advice. The company has accumulated a wealth of industry experience and technology in the field of the Internet of things, deeply ploughing intelligent environmental protection, and extending from intelligent environmental protection to smart city. With the promotion of the company's smart environmental protection and smart city business, we believe that the company may continue to maintain rapid growth, and the compound growth rate of homed net profit will remain more than 38% in the next three years. We estimate that from 2021 to 2023, the company's EPS will be 3.48,4.67,6.09 yuan respectively, maintaining a "hold" rating.
Risk hints: the macroeconomic downturn may lead to lower-than-expected demand for downstream applications of the Internet of things; risks of new technology research and development and new product development of the Internet of things; and intensified competition in the industry.