Event

In the first half of 2021, the company's income, net profit and net profit after deducting non-return were 21703.02 yuan, 4412.69 yuan and 38.4703 million yuan respectively, an increase of 156.54%, 989.18% and 861.24% respectively over the same period last year. The performance is beautiful, and the R & D investment for many years has finally come to fruition.

Brief comment

Accumulated strength: years of R & D investment in the phoenix software platform, now mature companies from around 2015 began to build a unified Phoenix software platform, the ultimate goal is to achieve that all operation and control products are based on this unified platform, this platform is different from the traditional CNC closed architecture, using an open motion control software architecture. From 2015 to the first half of 2021, the company invested 346 million of its R & D expenses, accounting for 26.19% of its operating income in the same period. both the absolute value of R & D expenses and the rate of R & D expenses are higher than those of similar companies, which shows that the company attaches great importance to the underlying common software platform.

After polishing in the past few years, the Phoenix platform is basically stable, new products can be developed on the Phoenix platform, the old platform products will gradually be phased out, and the low efficiency and high consumption of the new and old platforms in dual-front operations will come to an end. It can be expected that: 1 the R & D expenditure rate is gradually downward, which helps to increase the net interest rate. The 2021H1 R & D expenditure rate is 18.90% lower than the same period last year, 18.87 pct lower than the same period last year, and 1.67pct lower than the previous year. 2021H1 net interest rate 20.33%, year-on-year increase 26.20pct, month-on-month than 2021Q1 increased 1.53pctX 2 based on Phoenix unified platform to build a CNC system / controller suitable for many industries, giving the company more stamina for development

Forces are generated in many fields, such as laser cutting and turn-milling compound machine tools.

Laser field: in the first half of 2021, the company's laser cutting CNC system increased significantly, equivalent to the whole year of 2020, the highest level in history, obvious volume, customers including Bond, Heim Star, Hongshan and so on. The company's more than 10,000-watt laser cutting control system has been put into the market; this year, it has also launched CAD/CAM plug-ins and nesting software; in short, all aspects are narrowing the gap with the domestic laser numerical control system leader. In the future, it is planned to launch laser welding and ultra-fast laser numerical control system.

In the field of turning-milling composite machine tools: through the acquisition of 100% equity in Nanjing Kaikai, the company quickly cut into the lathe field, enabling the Phoenix unified platform to open in Nanjing to help its products upgrade, better adapt to the trend of lathe customer upgrading, and strive to enter the first echelon of the domestic industry within a few years, and complete domestic substitution in the high-end turning-milling compound field. Since its opening in February, Nanjing has contributed 6668 million in revenue and 13.4 million in net profit in the first half of the year, substantially exceeding the annual performance bet of 8 million in half a year alone.

Woodworking: the contribution income in the first half of the year exceeded 30 million, exceeding the level of the same period in 2019, but there is still a gap compared with the highest level of 90 million in 2017. with the trend of automated production in the furniture industry becoming more and more obvious, the corresponding numerical control system income in the woodworking field is expected to exceed 100 million in the future.

3C field: in 2020, the price war of CNC system in this field (mainly used for engraving, milling and engraving) is relatively fierce. In 2021, it has benefited from 5G and new technology, and the price has rebounded somewhat, and it has also achieved good growth.

Investment suggestion

It is estimated that the company's net profit from 2021 to 2023 is 9852.69 yuan, 14900.22 yuan and 207.7091 million yuan respectively, an increase of 238.79%, 51.23% and 39.40% respectively over the same period last year, and the corresponding PE is 33.49,22.15,15.89 times respectively, covering the "buy" rating for the first time.

Risk hint

The domestic epidemic situation is repeated; the investment in the manufacturing industry is lower than expected.