Events:
The company released its annual report for 2020 on April 27 and its first quarterly report for 2021 on April 28.
In 2020, the company achieved an operating income of 5.581 billion yuan, an increase of 14.87% over the same period last year, and a net profit of 258 million yuan, an increase of 4.35% over the same period last year. In the first quarter of 2021, the operating income was 1.027 billion yuan, an increase of 83.60% over the same period last year, and the net profit was 27 million yuan, an increase of 62.72% over the same period last year.
Comments:
Out of the impact of the epidemic, the performance is growing at a high speed. Affected by the epidemic in 2020, the company failed to achieve its growth target in the first half of the year and accelerated business recovery. Q3/Q4 achieved operating income of 1.745 billion yuan, an increase of 33.91 percent over the same period last year, with a year-on-year increase of 41.87 percent, and a net profit of 1.11 million yuan, an increase of 21.25 percent over the same period last year. 19.63 percent and 2021Q1 achieved more than 50 percent growth, laying the foundation for full-year results.
Promote the strategy of science and technology transformation and enter IDC. In May 2020, the company acquired 60% equity of Guangdong Shunde Kuanyuan Electronic Technology Co., Ltd. through acquisition and capital increase, and planned to invest 1.5 billion yuan to build the big data Center of Wusha (Kuanyuan) in Shunde. In April 2021, Kuangyuan Technology and Huawei Technology Co., Ltd. signed a cooperation agreement, the two sides will cooperate in IDC intelligent data center industry construction, cloud computing, big data and other aspects, which will help to improve the company's competitive strength.
The implementation of equity incentives shows the confidence of the company. In December 2020, the company issued a restricted stock incentive plan (draft), which proposes to grant 7.2884 million restricted shares at a price of 3.64 yuan per share. The lifting of the restriction is divided into three periods and is linked to the company's performance. On the basis of operating income in 2020, the annual growth rate of operating income in 21-22-23 is not less than 25%, 56%, 95%. The equity incentive plan helps to enhance the cohesion of the company and demonstrate the company's confidence in the future.
Exceed the promised performance and be optimistic about future performance. In 2020, the company bought 100% equity of Shenzhen Jiazette investment, the transaction price is 168 million yuan, and signed a commitment agreement. The audited net profit of the promised target company 2020Universe 2022 will be no less than 1,291Accord 1446max RMB 1.601 million respectively, and the actual realization will be RMB 15.7618 million in 2020, with a completion rate of 122.09%. The target company is expected to continue to achieve steady development under the efficient governance of the company in the future.
Give the company a "buy" rating. Combined with the company's equity incentive target, and taking into account that the company's 2020 return net profit growth is lower than expected, the profit forecast is lowered. It is estimated that the EPS of the company in 2021-2023 will be 0.51-0.68-0.85 yuan respectively.
Risk hint: the risk that the payback of the order is lower than expected, and the performance forecast and valuation judgment fall short of the expected risk.
