Event: according to the company's report for the third quarter of 2020, Q1-Q3 achieved an operating income of 2.795 billion yuan, an increase of 5.06% over the same period last year; a net profit of 363 million yuan, an increase of 24.34% over the same period last year; and an increase of 42.99% over the same period last year, and a net profit of 141 million yuan, an increase of 93.45% over the same period last year. Dilute EPS 0.52, up 7.95% from the same period last year.
Get rid of the impact of the epidemic, the company's revenue to become a regular. In the first three quarters of 2020, the company realized operating income of 2.795 billion yuan, an increase of 5.06% over the same period last year, a net profit of 363 million yuan, an increase of 24.34% over the same period last year, and an operating income of 1.047 billion yuan in the third quarter, an increase of 42.99% over the same period last year. The net profit reached 141 million yuan, an increase of 93.45% over the same period last year Revenue in the third quarter increased significantly compared with Q1-Q2, realizing to get rid of the impact of the epidemic, and the overall revenue became regular.
Advance payments have jumped sharply, and projects under construction have confirmed the prosperity of the industry. At the end of the reporting period, the company paid 192 million yuan in advance, a year-on-year jump of 199.99%, mainly due to the increase in prepaid accounts for production and procurement, the long supply cycle of suppliers, and the need to pay in advance. Taking into account the industry's "fixed production by sales" model, the increase in prepayments shows the high demeanor of the industry. Projects under construction totaled 143 million yuan, up 145.68% from the same period last year, mainly due to the continued increase in investment in projects under construction by subsidiaries during the reporting period. The project under construction is the leading indicator of capacity expansion, and the company's growth potential is expected to rise further in the future.
With the completion of the injection of high-quality assets, the ship power platform is expected to be further integrated. The company is currently the listing platform for the electronic equipment and information defense sector of China Shipping Group. In December 2019, it completed the injection of 100% equity in Haisheng Technology, 100% equity in Liaohai equipment, 100% equity in Jerry Holdings, 54.08% equity in Jerry Electronics, 62.48% equity in Qingdao Jerry and 49% equity in China Shipping Yongzhi, thus controlling the underlying assets of the merger. In addition, the company also has the high-quality assets of 5 electronic information plates and 12 scientific research institutes of China Shipping Group in vitro, and the ship power platform is expected to be further integrated in the future.
Profit forecast. The company is expected to make a net profit of RMB 106pm / 121max in 2022, corresponding to a multiple of PE in 33-29-25, and maintain a "highly recommended-A" investment rating.
Risk hint: the order of the company is not as expected and the capital operation is not as expected.
