Event: the company released a semi-annual report that its revenue in the first half of 2021 was 111 million yuan, an increase of 263.85% over the same period last year, and its net profit was 15.1309 million yuan, an increase of 266.02% over the same period last year.
Affected by the epidemic factors, the company gradually faded, and its performance turned from loss to profit. The company's 2021H1 revenue is 111 million yuan (YoY+ 263.85%), and its mother net profit is 15.1309 million yuan (YoY+266.02%). It lost 9.1142 million yuan in the same period last year and turned a loss into profit. From a business point of view, the company's signal processing platform business 2021H1 revenue was 101 million yuan, an increase of 248.41% over the same period last year.
The business revenue of Shuisheng big data and simulation system was 3.324 million yuan, an increase of 153.02% over the same period last year. From a quarterly point of view, the company's 2021Q1 gradually faded under the influence of the epidemic, and its revenue increased rapidly, achieving an income of 34.0775 million yuan (YoY + 76.58%), but due to multiple factors such as the reduction of tax rebate income and financial income from special products, the net profit returned to its mother was 453900 yuan (YoY-82.58%). Corporate delivery is concentrated in Q2 and Q4, showing a certain quarterly nature, usually Q2 has a more obvious impact on corporate performance. The company's 2021Q2 realized revenue of 77.5215 million yuan (YoY + 581.58%) and net profit of 14.677 million yuan (YoY + 225.22%), and its performance continued to improve. Throughout the year, with the improvement in operational efficiency brought about by the company's increased economies of scale and the delivery schedule as scheduled, we believe that the company is expected to achieve 110.5% revenue growth and 140.1% profit growth.
The company has plenty of orders on hand and is in good condition. The company's business model is to fix production on the basis of sales, and inventory is formed by the normal operation of the company. Except for a small amount of prepared raw materials, inventory can correspond to orders.
2021H1, the company's inventory balance is 131 million yuan, an increase of 18.85% over the same period last year, and the contract debt is 29 million yuan, an increase of 50.94% over the same period last year, which may reflect the increase in current orders-on-hand of the company. In addition, the balance of the company's 2021H1 accounts receivable is 407 million yuan. Accounts receivable are mainly accounts receivable from units under the group of large-scale central enterprises, and customers have good credit, and there has never been a situation in which they cannot repay the goods. With the gradual recovery of accounts receivable, the company's operating cash flow will gradually improve.
The threshold of sonar equipment industry is high, the company layout for many years, the competitive advantage is obvious. Sonar equipment industry needs higher technology, personnel, qualifications and other threshold, less participants, the company's technology comes from the Institute of Acoustics of the Chinese Academy of Sciences, and then layout this field for many years, with a certain first-mover advantage, can provide various types of sonar system overall solutions. In addition, the company has strong ability of product design and system integration.
In terms of hardware design, the company's product design can ensure the high reliability, scalability and cooperation between modules in the harsh environment. In terms of software, all kinds of self-developed embedded software systems of the company have the characteristics of compatibility, openness, advanced algorithm and high processing efficiency. Through system integration, the software system can be embedded into the hardware system.
The company promotes the development strategy of "one body and two wings", and new growth points are expected to continue to emerge. On the one hand, the Beijing headquarters as the center to ensure the development of traditional signal processing platform business. On the other hand, with Qingdao and Wuhan as the key investment directions outside Beijing, we will speed up the layout of underwater Acoustic big data, simulation system and unmanned detection, so as to cultivate new performance growth points for the company, and future growth is expected.
Investment suggestion: the net profit of the company from 2021 to 2023 is expected to be 55 million, 70 million and 95 million respectively, and the EPS is 0.71, 0.89 and 1.21 yuan, respectively. The current stock price corresponds to 39x, 31x and 23x. With reference to the comparable company valuation, the company valuation has an advantage. The company has ploughed the field of sonar special equipment for many years and has obvious technical advantages. With the improvement of marine information demand, the company is expected to benefit from the downstream demand growth. Cover for the first time and give a "recommended" rating.
Risk hint: the risk that the company's R & D and capacity expansion is not as expected; the company's order landing is not as expected.