Events: the company announced on December 7 that Zhenxin Technology and its holding subsidiaries Chengdu New Orange Beidou Zhaopian Co., Ltd., Chengdu Guoxing Communication Co., Ltd., Chengdu Guoyi Electronic Technology Co., Ltd., etc., received a total of 43.1611 million yuan in government subsidies from January 2020 to the date of disclosure of this announcement.
It has received more than 40 million government subsidies, and the total profit has increased significantly. According to the provisions of the Accounting Standards for Enterprises No. 16-Government subsidies, as of the date of this announcement, the total amount of government subsidies related to income received by the company as of the date of this announcement is 11124032.65 yuan, which will increase the total profit of the company by 11124032.65 yuan. The total amount of government subsidies included in deferred income is 32037100.00 yuan, and the company will carry forward and increase the total profits of the current period in accordance with the provisions of Accounting Standards for Enterprises No. 16-Government subsidies.
R & D innovation has achieved remarkable results, and the performance inflection point is gradually approaching. In 2020, the company continued to promote product development and technology, and achieved fruitful results in many fields. In terms of integrated circuits, the company focuses on breaking through the key technologies of radio frequency, high-speed interface, SDR, communication and so on. In the SOC direction, the anti-jamming design is completed, and the signal-to-noise ratio, integration and power consumption are further improved, which can meet the requirements of the future anti-jamming Beidou terminal. In the frequency synthesis direction, high-performance clock cleaning and buffer sample testing are completed, and the main performance jitter indicators reach the domestic advanced level. In the RF direction, the high linear RF front-end technology is broken, the anti-interference test is completed, and the output of the receiving channel and the linearity index are obviously improved; in the MMIC direction, the silicon-based MMIC design technology is fully mastered, and the sample development of a certain band silicon-based MMIC product is successfully completed, and the key indicators such as phase shift accuracy, noise figure and output power meet the user application requirements.
In the field of Beidou navigation application, the company launched Beidou No. 3 baseband signal processing products, receiving sensitivity, positioning accuracy and other indicators to achieve the engineering application requirements. In the aspect of Beidou application terminal, the Beidou SBAS and PPP algorithm verification is carried out based on the Beidou 3 multi-frequency verification terminal and the Beidou large system; based on the Beidou RDSS transceiver link, the Beidou 3 dual-mode handheld terminal independently developed by the company realizes picture and voice transmission functions. In the aspect of new products, a kind of airport Beidou intelligent monitoring terminal is introduced, which uses satellite positioning and inertial navigation module to realize the functions of voice broadcast, NFC identity recognition, Bluetooth transparent communication and so on.
According to the latest financial data released by Zhenxin Technology, the company's operating income from January to September 2020 was 322.183 million yuan, an increase of 6.78% over the same period last year. The net profit belonging to shareholders of listed companies was 50.8729 million yuan, an increase of 519.84% over the same period last year. We believe that vibrating core technology will fully benefit from the rapid growth of Beidou 3 global networking and integrated circuit industry, and since the beginning of the year that there is no actual controller, operational obstacles have been gradually resolved, and the company is expected to usher in a performance inflection point.
Profit forecast and investment rating: the company's net profit from 2020 to 2022 is expected to be 78 million yuan, 81 million yuan and 83 million yuan, and EPS is 0.14,0.15,0.15 yuan, corresponding to 91 times, 88 times and 86 times of PE, maintaining the "buy" rating.
Risk tips: Beidou application promotion is not as expected; new product development is not as expected.