The company released its semi-annual report for 2021: revenue of 169 million yuan, an increase of 42.73% over the same period last year; net profit of 48 million yuan, an increase of 45.44% over the same period last year; and net profit of 43 million yuan, an increase of 30.60% over the same period last year. From a quarterly point of view, 2021Q2, the company achieved revenue of 149 million yuan, an increase of 44.10% over the same period last year, an increase of 650.43% month-on-month, and a net profit of 47 million yuan, an increase of 20.62% over the same period last year and 5020.87% over the same period last year.
In terms of products, during the reporting period, the company's satellite navigation business income reached 126 million yuan, an increase of 118.72% over the same period last year, accounting for 74.41% of the company's total revenue; satellite communications realized business income of 43.3273 million yuan, a decrease of 29.00% over the same period last year, accounting for 25.59% of the company's total revenue.
During the reporting period, the company's overall gross profit margin was 61.10%, a decrease of 11.37pct over the same period last year, including a gross profit margin of 61.25% in the second quarter, a year-on-year decrease of 12.59pct, a slight increase of 1.25pct over the first quarter, and a net profit rate of 28.37%, an increase of 0.62pct over the same period last year.
During the reporting period, the company's expenses during the period were 51.4338 million yuan, an increase of 22.03% over the same period last year, and the proportion of expenses in revenue was 30.38%, a decrease of 5.15pct over the same period last year. Of this total, sales expenses were 9.6392 million yuan, down 24.84 percent from the same period last year; management expenses were 21.5546 million yuan, up 90.24 percent from the same period last year; financial expenses were-5.4355 million yuan, compared with 586300 yuan in the same period last year; R & D expenses were 2567.56 yuan, an increase of 47.50 percent over the same period last year, and R & D investment accounted for 15.16 percent of business income, an increase of 0.49pct.
During the reporting period, through industry development and market demand analysis, the company took electronic countermeasures as the strategic development direction of the company's business, set up the electronic countermeasures division, and increased the investment of resources in market development, technology development and talent introduction, so as to make a good layout for the company's new business growth points in the future.
During the reporting period, the company's receivables totaled 552 million yuan, an increase of 13.86 percent over the beginning of the period; inventory was 194 million yuan, a significant increase of 52.7 percent over the same period last year, and a significant increase of 58.16 percent over the beginning of the period. During the reporting period, the company's accounts receivable turnover rate was 0.39 times, 0.06 times lower than the same period last year; inventory turnover rate was 0.41 times, an increase of 0.13 times over the same period last year.
We adjust our profit forecast according to the latest earnings report. We expect the company's net profit from 2021 to 2023 to be 1.53 and 2.17 billion respectively, and its EPS will be 1.33 to 2.17 and 3.74 yuan per share respectively, corresponding to the closing price of PE on August 16, which is times that of 58-36-21, maintaining the "prudent overweight" rating.
Risk hint: the progress of military delivery is not as expected; overseas customers are single and geographically concentrated; and the development of the domestic satellite communications market is slow.