Event

The company released the third quarter of 2020 report, Q3 in 2020 single-quarter revenue of 91.09 million yuan, an increase of 18.87% over the same period last year; net profit of 22.09 million yuan, an increase of 24.12% over the same period last year, has basically got rid of the adverse effects of the epidemic.

Comment

The adverse effects of the epidemic are gradually eliminated.

In the face of the global epidemic and complex international situation in the first half of the year, the company's short-term operation was affected to a certain extent, but the company actively responded to it in a variety of ways. at present, the adverse effects of the epidemic have been basically eliminated, and the revenue of various products and the net profit of returning home have increased steadily. In 2020, Q3 achieved operating income of 81.09 million yuan in a single quarter, + 18.87% of the same period last year, deducting 21.38 million of non-return net profit, and + 31.59% of the same period last year.

The company's orders maintained rapid growth. In the first three quarters, the domestic market grew by more than 6%, while the international market grew by 1.3% year-on-year in the first three quarters, of which orders increased by 15% in the third quarter compared with the same period last year. With the full resumption of work at home and the effective response to the epidemic abroad, it is expected that revenue will continue to grow at a high speed in the fourth quarter, offsetting the adverse effects of the first half of the year.

Persisting in R & D and Innovation to build the Company's Core Competitiveness

Under the adverse effects of trade frictions and the epidemic situation, the company persisted in a high proportion of R & D investment, with R & D investment of 46.8 million yuan in the first three quarters, accounting for 24.9% of the total revenue.

The company's fund-raising project-Intelligent Calibration Product R & D Center project is about to be launched, which will further strengthen the company's R & D strength, expand product application scenarios, enhance market share and product added value, and build the company's core competitiveness.

Capacity expansion, revenue scale of temperature products is expected to grow rapidly

With the continuous expansion of market demand and the diversification of the company's products, the company's production capacity is in a state of full capacity. In 2019, temperature calibration products accounted for 13.63% of the company's operating income, an increase of 39.29% over the same period last year, showing a rapid growth trend. There is a huge space for the development of temperature calibration products, and it has a synergistic effect with pressure testing products in production, R & D and sales. The pressure and temperature testing instrument manufacturing project of the company's fund-raising project is expected to be put into use in 2021, when it will realize the large-scale production of temperature testing products, further enrich the company's product structure, improve the industrial chain, and give full play to the characteristics of product differentiation. to meet diversified market needs. Effectively enhance the business scale of the company and drive the rapid growth of the company's performance.

Investment suggestion: the company's operating income from 2020 to 2022 is expected to be 300 million yuan, 376 million yuan and 451 million yuan respectively; the net profit returned to the mother is 81 million yuan, 97 million yuan and 114 million yuan respectively; the EPS is 0.38,0.45 yuan and 0.54 yuan respectively, corresponding to 45x, 38x and 31x respectively.

Risk tips: 1, production expansion and MEMS project construction are not as expected; 2, the global epidemic control is not as expected.