\u3000\u3000 Piesat Information Technology Co.Ltd(688066) (688066)
Event:
The company issued the announcement of annual performance increase in 2021 after the closing on January 28, 2022.
Comments:
It is expected that the net profit attributable to the parent company will increase by 47.47% – 62.99% year-on-year, and the new orders signed in the local market will reach a new high
In 2021, the company expects to realize a net profit attributable to the parent company of 190-210 million yuan, with a year-on-year increase of 47.47% – 62.99%; It is expected to realize a net profit of 147-167 million yuan, a year-on-year increase of 27.59% – 45.01%. The company’s performance maintained a sustained and stable growth, mainly due to the following aspects: 1) the company continued to build and improve the four-level marketing system of “headquarters – Region – Provincial Office – city node”, the local market continued to increase in volume, the downstream “pie + industry” product line revenue increased rapidly, and the new orders signed throughout the year reached a new high; 2) The company has continuously participated in the informatization construction of special fields, and has become one of the few units with the ability to undertake overall projects. Its competitiveness has been continuously improved, driving the steady growth of income in special fields; 3) According to the preliminary statistics of the company, the amount of non recurring profit and loss in 2021 is 43.49 million yuan, mainly subject research projects, and the technical reserves are constantly improving.
Phased achievements were made in the expansion of special fields, and 279 million yuan single source procurement contract was signed
Through the accumulation of technology in the civil field, the company has gradually expanded to special fields and achieved phased results. The company disclosed in the minutes of investor exchange on April 29, 2021: “in the past, the company’s private revenue accounted for about 70% and the special field accounted for about 20%. In 2020, the company achieved rapid development in special field business, with revenue of 320 million yuan, a year-on-year increase of nearly 150%, and the proportion increased from about 20% to 38%”. The company has a number of qualifications in special fields. It obtained the qualification of electronic navigation map in 2021. It is one of the few enterprises in China with the qualification of special fields and electronic navigation map at the same time. On December 23, 2021, the company announced that it had signed a single source procurement contract with a unit, with a contract amount of 279 million yuan. If the sales contract is successfully performed, it is expected to have a positive impact on the company’s performance.
Actively expand cloud services, and the pie engine remote sensing cloud service platform has more than 60000 registered users
The company began to expand cloud services in 2018 and officially released China’s first pie engine remote sensing cloud service platform in 2020. It has been successfully applied in the fields of natural resources, ecological environmental protection, emergency management, meteorology and ocean, water conservancy, agriculture and forestry, national defense and security, and is expected to replace foreign remote sensing cloud service platforms. In January 2022, the company released the annual report of PIE-Engine remote sensing cloud service platform in WeChat official account. According to statistics, in 2021, the number of registered users exceeded 60 thousand, the monthly number of new users exceeded 4000, the number of visitors to the platform reached 640 thousand, the number of new samples exceeded 1 million, the newly added remote sensing data set was nearly 70, and the total number of remote sensing data was nearly 150. There are more than 6000 monthly active users.
Profit forecast and investment suggestions
The company is committed to the localization of satellite application software, the industrialization of industrial application and the commercialization of application services, and has a broad growth space in the future. With reference to the announcement on the advance increase of annual performance in 2021, the forecast of the company’s operating revenue from 2021 to 2023 is adjusted to RMB 1.231, 1.722 and 2.364 billion, the forecast of net profit attributable to the parent company is adjusted to RMB 200, 268 and 364 million, and the EPS is RMB 1.08, 1.45 and 1.97/share, corresponding to 58.15, 43.39 and 31.93 times of PE. Since its listing, the company’s PE has mainly operated between 40-100 times. Considering the company’s competitive advantage, the company has been given 50 times of the target PE in 2022, and the corresponding target price is 72.50 yuan. Maintain the “overweight” rating.
Risk tips
Repeated covid-19 pneumonia outbreaks may affect the budget and investment progress of downstream customers; Pie and industry application promotion are not as expected; The revenue generated by the SAR remote sensing satellite project is lower than expected; Market competition intensifies.
