Hanwang Technology achieved revenue of 1,555 billion yuan in 2020, +40.80% compared to the previous year. The interactive business showed strong vitality, and market development results were remarkable. 1) By business, the company's brush-touch interactive business achieved revenue of 1,112 billion yuan in 2020, +107.12% compared to the previous year; the big data business achieved revenue of 191 million yuan, +1.25% year on year. 2) The share of overseas business revenue increased dramatically, further seizing overseas markets. In 2020, the share reached 62.30%, +30.39pct over the same period last year. 3) The company achieved net profit of 104 million yuan to the mother in 2020, +177.83% year on year.
The Group continues to promote the improvement and optimization of internal management. By continuously deepening resource sharing and business cooperation between the group and subsidiaries, and between subsidiaries and subsidiaries, management and operation efficiency has been improved, and the achievement of the company's overall strategic goals has been guaranteed. Among them, the subsidiary Han Wang Pengtai (mainly responsible for the company's digital painting business) achieved revenue of 1.08 billion yuan in 2020, +121.15% year on year, and net profit of 172 million yuan, +1072.65% year on year.
Pay attention to sales layout and R&D investment. 1) The company's global marketing network is becoming more and more mature. The company's digital painting products are sold to more than 100 countries and regions around the world through mainstream cross-border e-commerce platforms such as Amazon, e-Bay, Lazada, and Shopee, and 15 self-built websites, and many products have entered the “Bestseller” list by Amazon. In 2020, the penetration rate of overseas online shopping increased further, and the company's global marketing strategy was initially verified. 2) The company further increased investment in R&D, transformed technological advantages into product advantages, and launched new products. In 2020, R&D investment reached 155 million yuan, +24.11% year on year, and the number of R&D personnel reached 621, +6.52% year on year. By the end of 2020, the company had 899 valid patents, accounting for nearly 60% of the total number of invention patents, reaching 524.
Investment advice: We forecast that Hanwang Technology's revenue from 2021 to 2023 will be 24.12, 3.01, and 4,032 billion yuan respectively, while the net profit of the mother will be 205, 239 and 272 million yuan respectively, and the corresponding EPS will be 0.84, 0.98, and 1.11 yuan respectively, maintaining the purchase rating.
Risk warning: Overseas market expansion falls short of expectations; market demand changes; technology research and development falls short of expectations.