Event: the company released its annual report for 2020 and quarterly report for 2021. The company realized revenue of 1.034 billion yuan in 2020, an increase of 40.5% over the same period last year. It realized a net profit of 104 million yuan, turning losses into profits over the same period last year. In the first quarter of 2021, the company realized revenue of 194 million yuan, an increase of 29.72% over the same period last year. Net profit reached 16 million yuan, an increase of 26.7% over the same period last year.
Comments:
Sufficient orders and steady growth in performance. In 2020, the company realized revenue of 1.034 billion yuan, an increase of 40.5% over the same period last year. From a business point of view, the revenue of intelligent logistics transportation system was 291 million yuan, an increase of 143.09% over the same period last year. The revenue of intelligent logistics warehousing system was 395 million yuan, an increase of 36.60% over the same period last year. Intelligent three-dimensional parking garage realized revenue of 71 million yuan, an increase of 20.29% The revenue of the intelligent painting production line reached 178 million yuan, down 32.14% from the same period last year. The decline in smart painting business is mainly due to the epidemic affecting the development of Hayden's overseas business. In 2020, the company developed a major customer strategy and signed 7 orders with a total value of more than 5000 million yuan, with a total amount of more than 710 million yuan.
Profitability is under short-term pressure, and the expense rate has decreased significantly. In 2020, the company's comprehensive gross profit margin was 29.27%, down 2.37pct from the same period last year; the gross profit margin of the intelligent logistics delivery system was 19.71%, down 11.56pct from the same period last year; the gross profit margin of the intelligent logistics warehousing system was 29.17%, an increase of 1pct over the same period last year; and the gross profit margin of the intelligent painting production line was 43.12%, an increase of 4.09pct over the same period last year. In 2020, the company's net interest rate was 10.6%, down 1.73 pct from the same period last year. With the improvement of economies of scale, the company's expense rate decreased significantly, with a total expense rate of 14.33% in 2020, a decrease of 3.0 pct over the same period last year. The sales expense rate increased by 0.02 pct compared with the same period last year, while the management expense rate and financial expense rate decreased by 1.94pct and 0.37pct respectively.
The strategic expansion of major customers is smooth, and sufficient orders ensure steady growth in performance. In 2020, the company developed key customer strategy, opened up strategic customers including German Daimler, Kouzi Wine Industry, Malaysia Fenn, and signed 7 new orders with a total value of more than 5000 million yuan, with a total amount of more than 710 million yuan.
As of the first quarter of 2021, the company's inventory was 417 million yuan, an increase of 7.19 percent over the same period last year; the contract liability was 359 million yuan, an increase of 63.18 percent over the same period last year and 2.64 percent month-on-month. The sharp increase in contract liabilities compared with the same period last year further shows that the company has sufficient orders on hand.
Profit forecast and investment rating: we expect the company's net profit from 2021 to 2023 to be 139 million yuan, 179 million yuan and 215 million yuan respectively, with a corresponding EPS of 0.51 yuan per share, 0.66 yuan per share and 0.79 yuan per share, respectively, and the corresponding share price PE is 29 times, 23 times and 19 times respectively. Maintain the company's "buy" rating.
Risk factors: downstream demand is lower than expected; M & An integration is not as expected; industry competition is intensified.