Wuhan Citms Technology Co.Ltd(688038) (688038. SH), which is mainly engaged in urban public safety management information services, landed on the science and Innovation Board on July 13, 2021. The company’s annual performance express announcement disclosed on February 25 showed that the company’s operating revenue and net profit attributable to the owners of the parent company were 430 million yuan and 37.3293 million yuan respectively, a decrease of 13.25% and 32.61% respectively over the previous year. It should be noted that in the three years before listing, the company’s performance maintained positive growth every year.
Public information shows that Wuhan Citms Technology Co.Ltd(688038) is mainly engaged in providing professional information services for urban public security management through new generation information technology means. The company provides the public security department with the design, development, construction and subsequent operation and maintenance services of public security management information system through big data, cloud computing and other information means, so as to realize the visualization and maintenance of urban public security Network and intelligent management to improve the governance level and management efficiency of urban public safety. The customers are mainly the public security departments of provinces and cities.
According to the 2020 annual report, the top five customers of Wuhan Citms Technology Co.Ltd(688038) are China Telecom Corporation Limited(601728) , Hubei Radio & Television Information Network Co.Ltd(000665) , Nanjing fenghuoxingkong Communication Development Co., Ltd., Hubei Provincial Public Security Department and the traffic police detachment of Jinan Public Security Bureau. The suppliers are Beijing Digital China Group Co.Ltd(000034) Co., Ltd., Hangzhou Hangzhou Hikvision Digital Technology Co.Ltd(002415) Technology Co., Ltd., Zhejiang Dahua Technology Co., Ltd., Wuhan Sixing Technology Development Co., Ltd Wuhan ruikede Technology Co., Ltd.
Wuhan Citms Technology Co.Ltd(688038) in the 2021 semi annual report, it is pointed out that in terms of product classification, the public safety management information service provided by the company mainly includes two parts: (1) development and construction of information system; (2) Information system operation and maintenance services. In addition, the company will provide customers with independent software development services or sell software products separately according to customers’ information application needs. In addition, China’s public security information industry has a large number of enterprises, full market competition and low overall market concentration. Due to the obvious regional characteristics in the field of public security information services, the market competition in different regions is mainly concentrated among a small number of enterprises with strong comprehensive service capabilities such as scheme design, software development, project implementation, operation and maintenance services.
According to the introduction, Wuhan Citms Technology Co.Ltd(688038) core product application platforms are based on the self-developed “x-data center data center” and micro service architecture. It realizes unified data resource management and effective intensive data support, improves the integration and application ability of public security big data, has the technical advantages of high development efficiency, strong scalability, high stability and low maintenance cost, and can quickly realize the application needs of customers in various customized scenarios.
From 2018 to 2020, Wuhan Citms Technology Co.Ltd(688038) realized net profits of 36.6625 million yuan, 50.298 million yuan and 55.3954 million yuan respectively, with annual growth rates of 312.72%, 37.19% and 10.13% respectively.
From the above introduction, Wuhan Citms Technology Co.Ltd(688038) should have certain advantages in some regions, and the customers are relatively stable. Even in 2020, when the epidemic in Hubei is more serious, the company’s net profit still maintains positive growth. So why did the company have negative performance growth in the first year of listing? In the performance express, the company explained that the company’s business in 2021 was greatly affected by the repeated covid-19 epidemic and the reduction or postponement of project budget by some regional governments. In order to enhance the company’s comprehensive competitiveness and expand its business scale, the company has increased market development and R & D investment.
From the perspective of the secondary market, or just because the performance is not ideal, Wuhan Citms Technology Co.Ltd(688038) since its listing, the share price has been declining all the way, and the total market value hovers around 2 billion yuan.
