According to the semi-annual report released by the event company, the revenue in the first half of 2021 was 75.8626 million yuan, an increase of 123.65% over the same period last year, and the net profit was 12.5762 million yuan, an increase of 378.99% over the same period last year.
The rapid growth in performance is mainly due to the pull of the demand for military products downstream. The company's 2021H1 revenue is 76 million (YOY+123.65%), Q2 revenue is 47 million (YOY+141.73%), 2021H1 return net profit is 13 million (YOY+378.99%), Q2 return net profit is 3 million (YOY+212.05%). The good performance is mainly due to three reasons: first, the military market demand is strong, and the business of the company's wholesale products (mainly guidance systems) and R & D products (mainly simulation systems) is growing rapidly, growing by 100% and 204% respectively; secondly, the company's profitability has improved significantly, including a comprehensive gross profit margin of 55.22%, an increase of 19.16pct, a year-on-year expense rate of 41.57%, a sharp decline in 46.11pct compared with the same period last year. Thirdly, the production and operation activities of the company were affected by the epidemic in 2020, with a low base. It should be pointed out that the company's civil product revenue in the first half of the year was 111.64 billion, down 57.6% from the same period last year. Among them, the sales of human body temperature measurement equipment decreased by 22.97 million yuan compared with the same period last year, while the sales of electric power testing products increased by 9.0322 million yuan compared with the same period last year. We believe that the demand for missiles, simulations and other equipment is expected to continue, and the rapid growth of military revenue will still be the main driving force for the company's future development. In addition, the company's inventory increased by 28.6% compared with the beginning of the period, which may effectively cope with the rapid growth of orders in the future.
Optical guidance subdivision leader is expected to blossom and bear fruit in many fields in the future. During the reporting period, the mission of the company's imaging guidance project progressed smoothly, and foreign trade TV guidance and low-cost infrared guidance products were successful with the overall unit flight test, and the mass production of optical guidance products could be realized in a short period of time. and is expected to become a new performance growth point of the company in the future. At the same time, the company has the ability to undertake batch production of laser products, aircraft optoelectronic detection equipment, calibration equipment has been continuously optimized, has entered a small batch supporting stage. In addition, combined with its own R & D advantages and market demand in the field of optoelectronics, the company has explored forest fire prevention, electric power, railway, security, agriculture and other civilian fields, and the prelude to the development of civilian products is slowly opening.
Implement equity incentives to demonstrate confidence in development. On January 21, the company awarded 800000 restricted shares to 31 incentive subjects at 14.80 yuan per share. The revenue target from 2021 to 2023 is 260 million (YOY+109.7%), 340 million (YOY+30.8%) and 440 million (YOY+29.4%) respectively, with a three-year compound growth rate of 52.5%. The total amortization of equity incentive expenses is 30.54 million yuan, of which from 2021 to 2024 is about 12.16 million yuan, 10.72 million yuan, 5.63 million yuan and 2.04 million yuan respectively. We believe that this time, the company regards the technical backbone as the core personnel of motivation, which demonstrates the importance the company attaches to R & D and innovation, as well as the company's confidence in future development.
Investment advice. It is estimated that the company's revenue from 2021 to 2023 will be 265 million, 348 million and 445 million, the net profit will be 75 million, 104 million and 142 million, the EPS will be 0.75, 1.04 and 1.42 yuan, and the stock price will be 62x, 45x and 33x corresponding to PE. According to the comparable company's valuation, the company's valuation does not have an advantage, but as key missile models are finalized, the company's business development is expected to accelerate, with a CAGR of about 80.5% over the next three years. Cover for the first time and give a "recommended" rating.
Risk hint: the risk of product development and technical research and development and the progress of product finalization are not as good as expected.