\u3000\u3000 Piesat Information Technology Co.Ltd(688066) (688066)
Event review:
The company released the performance forecast on the evening of January 28. The company expects to realize the net profit attributable to the parent company of 190-210 million yuan in 2021, with a year-on-year increase of 47.47% to 62.99%; The net profit attributable to the parent company after deducting non recurring profit was 147-167 million yuan, with a year-on-year increase of 27.59% to 45.01%. The non recurring profit and loss of 43.49 million yuan was mainly a research project. Overall, the company’s performance forecast exceeded expectations, mainly due to 1) the continuous volume of local market business and the rapid growth of risk census business; 2) The competitiveness of special fields has been continuously improved, and the income in special fields has increased steadily.
The company’s orders continue to reach a new high. In terms of short-term performance safety, medium-term growth determination and long-term space huge risk survey, it is expected that the market space will be about 10 billion in 2022. The company will continue to make efforts to the local market and improve the marketing system. The orders of the whole year will reach a new high in 2021, which is expected to maintain a market share of 15% – 20%, and the follow-up business of Fengpu will also make a breakthrough; In terms of special fields, in the first year of the 14th five year plan, the national defense informatization construction mainly focuses on pre research projects. In the future, with the assembly of model equipment, the company is expected to accelerate the growth of revenue in special fields by virtue of its overall project capacity and channel advantages; In terms of self built constellations, unlike communication and navigation satellites, which can be put into operation after networking, remote sensing satellites can generate benefits after entering orbit. The company’s InSAR satellite constellations are scarce and have broad business prospects.
Investment advice
Looking ahead, Piesat Information Technology Co.Ltd(688066) takes the midstream data processing capability (PIE) as the core, expands to downstream applications and upstream data acquisition, and is expected to grow into a satellite application platform company. It is estimated that the company’s net profit attributable to the parent company from 2021 to 2023 will be RMB 189 million, RMB 269 million and RMB 381 million respectively, corresponding to EPS of RMB 113 million, RMB 162 million and RMB 2.29 million, and the current share price corresponding to PE from 2021 to 2023 will be 55.6x/38.9x/27.5x respectively. Maintain the “buy” rating.
Risk tips
1) the informatization construction in special fields is less than expected;
2) the follow-up, real 3D, cloud service and other business expansion of Fengpu are not as expected;
3) depreciation and amortization of the company’s InSAR satellite constellation is a drag on performance risk.
