I. Overview of events
On March 29, 2021, the company released its 2020 annual report, with revenue of 1.555 billion yuan, an increase of 40.8% over the same period last year, and net profit of 104 million yuan, an increase of 177.81% over the same period last year.
II. Analysis and judgment
The high growth of the drawing board business led to a high increase in overall performance, and the profit margin significantly improved the company's intelligent interactive business income of 1.112 billion yuan in 2020, an increase of 107.12% over the same period last year. With the continuous improvement of overseas marketing capabilities, drawing boards and other businesses have achieved good performance overseas, selling in more than 20 third-party cross-border e-commerce platforms and 15 self-built stations, including Amazon and e-Bay, and a number of products have been rated as "Bestseller" by Amazon.Com Inc. From the situation of Han Wang Pengtai, a subsidiary mainly responsible for the drawing board business, we can see that Han Wang Pengtai achieved an income of 1.08 billion yuan in 2020, a growth rate of 221%; a net profit of 172 million yuan, a growth rate of 822%, and a good trend of overseas business development.
At the same time, the gross profit margin of pen intelligent interactive business was 58.71%, an increase of 18.08 percentage points over the same period last year, and the profit margin improved significantly.
Consumer electronics pens and other businesses are blooming at many points, which is expected to become a new driving force for the growth of capacitive pens. In 2020, the company's capacitive pens products and solutions gradually opened up the market at the B end, made continuous breakthroughs in the field of mobile phones, and won the recognition of domestic well-known first-class brands. In the aspect of paperless office, the company signed and approved products for online application in Jiangsu social security window, winning bid China Merchants Bank digital network 3.0 counter signature screen, Jiangsu government self-help all-in-one machine, China Mobile Limited wisdom business hall system software phase II and other projects. In terms of wisdom application, the electronic file generation center of Beijing higher people's Court, which is built and operated by the company as a whole, has been successfully completed, with more than 20 new medical big data clients. The intelligent reading system platform of K12 digital library and intelligent classroom has been applied in primary and secondary schools in nearly 30 counties and cities in 15 provinces. Based on artificial intelligence technology, the company has products in many fields and has important customers, and is expected to become an important driving force for the company's own growth in the future.
III. Investment suggestions
It is estimated that the return net profit of the company from 2021 to 2023 is RMB 1.75 million, EPS is 1.72 million, and PE is 28X, 19x and 16x, respectively. Select the computer industry company of Wind artificial intelligence plate, the related company's average PE in 2021 is 33X (Wind consensus expectation), the company's current valuation is slightly lower than the industry average, considering that the company's performance is expected to continue to grow high, and belongs to the leader in the field of artificial intelligence vision, maintain the "recommended" rating.
Fourth, risk tips:
Overseas business is not as expected, and the expansion of the traditional field of artificial intelligence is not as expected.