The promotion of Blu-ray storage model is smooth, and the company's performance is growing rapidly.
The company relies on the accumulated underlying core technology and the whole industry chain and other competitive advantages, along the "media-equipment-solution", in the rapid growth at the same time, actively develop the application of optical storage in data centers and various industries. In 2019, the company achieved an operating income of 516 million yuan, an increase of 28.57% over the same period last year, and a net profit of 138 million yuan, an increase of 31.35% over the same period last year. The net cash flow generated by business activities was 37 million yuan, an increase of 259.50% over the same period last year.
Vigorously lay out sales and R & D to lay the foundation for future business growth the company is vigorously laying out sales and R & D to consolidate the foundation for future business growth. The company's 19-year sales cost was 21 million yuan, an increase of 62.79% over the same period last year. At present, it has formed a double regional sales center of "Guangzhou + Beijing". In the future, it will realize the linkage between the north and the south based on the market in South China and form a national market layout; the R & D expenditure over the past 19 years is 49 million yuan, an increase of 74.81% over the same period last year. The company relies on its own industry experience and R & D strength to actively layout the research and development of holographic optical storage technology. We expect that with the completion of the future sales network, the development of the company will be on the fast track, and the research and development of holographic optical storage technology will lay the foundation for the company's long-term development.
The downstream demand is strong, and the company's raw material reserve has increased substantially.
At present, the downstream end users of the company are mainly government affairs, and applications in key industries such as data centers, medical care, and the Internet also continue to infiltrate. In 2019, the revenue of the above industries was 467 million yuan, accounting for more than 90.53%. With the continuous promotion of green data centers and the increasing demand for storage such as data archiving and disaster preparedness in government, medical, military and other fields, the demand in the lower reaches of the industry is very strong. In 2019, the company's optical storage equipment inventory increased by 250% compared with the same period last year, and the inventory increased by 31.20% over the same period last year, which also reflects the strong demand downstream of optical storage.
Investment suggestion
It is estimated that the company's operating income from 2020 to 2022 will be 10.05pm 1.383 billion yuan and its net profit will be 1.99max 270max 374m. The company is the target of scarce optical storage. Among the A-share listed companies, only Yi Hualu operates a similar optical storage business, while listed Huasheng Tiancheng provides big data storage solution and cloud data center. Dawning of China Science and Technology provides cloud computing storage solution and big data storage solution, so it also has some comparability with the company, considering the underlying technical information innovation of the company. It is the target of scarce storage with independent intellectual property rights, and enjoys a certain valuation premium. We give the company 40-46 times PE in 2021, the reasonable market capitalization of the company is 108-12.4 billion yuan, and the corresponding stock price is 57-65 yuan.
Risk tips: light storage enterprise market development is not as expected risk; mass production of large-capacity optical discs is not as expected risk; accounts receivable recovery risk; BDA certification risk.