In 2020, the company achieved operating income of 2.71 billion yuan, down 0.87% from the same period last year; net profit from home was 489 million yuan, an increase of 9.49% over the same period last year; and projects under construction were 1.319 billion yuan, an increase of 1.222 billion yuan over the same period last year, mainly due to increased investment in five satellite construction projects such as Zhongxing 26. In a single quarter, the operating income of Q4 was 801 million yuan, down 0.15% from the same period last year, and the net profit was 153 million yuan, up 9.08% from the same period last year.
Domestic communications satellite operation industry leader, will increase the plan to enhance the core strength. The company is the only basic telecom operator with independent controllable commercial communication and broadcasting satellite resources in China, and has an absolute competitive advantage in the domestic market. The company currently operates 15 communications satellites, including 2 high-throughput satellites, and is expected to launch at least six new satellites between 2021 and 2023. The company has issued a plan to raise no more than 3.3 billion yuan for three of the newly launched satellites.
To transform to a service provider, the company develops marine and aviation Internet business. At present, the satellite communication industry is in the stage of profound adjustment and transformation, and satellite operators are changing from capacity wholesalers to service providers. The company actively develops ocean and aviation Internet business, realizes Ka+Ku resource fusion networking operation on ship-borne platform, launches "Hangxingtong" APP 2.0 version, and optimizes video surveillance and other application capabilities; and jointly invests with space investment to form a professional subsidiary of Xinghang Interconnection, which provides aviation Internet, and completes the maiden voyage of China's first Ka-band broadband satellite Internet aircraft. China's aviation Internet penetration rate is only 5%, which is far lower than the 80% penetration rate of the United States, and the domestic market is vast. In the future, marine and aviation Internet business will become an important growth point for the company's performance.
High-throughput business growth will improve the quality of the company's business. The communication satellite operation industry is developing to the traffic pricing mode, while high-throughput satellites can achieve several to dozens of times of data throughput of traditional satellites, increase revenue, gross profit margin and so on. In 2017 and 2020, the company launched two high-throughput satellites, China Star 16 and Asia-Pacific 6D, respectively, filling the gap in China's high-throughput satellite market. With the development of the market, the increase in the proportion of high-throughput business in the future will lead to the growth of revenue, gross profit margin and so on.
Profit forecast: the company's operating income in 2021-2023 is expected to be 27.65,28.75 and 3.048 billion yuan, the net profit returned to its mother is 5.55,6.16,678 million yuan, EPS 0.14,0.15,0.17 yuan, and the corresponding share price EV/EBITDA is 32.14,30.87,29.50 times. As a leader in the domestic communications satellite operation industry, the company has maintained a "buy" rating with a six-month target price of 20 yuan, benefiting from high-throughput satellite development and satellite Internet business development.
Risk tips: systemic risk, the risk of falling prices due to intensified competition in the international market, the risk of lower-than-expected high-throughput market expansion, satellite launch failure or major failure in orbit.