Geovis Technology Co.Ltd(688568) (688568)
The leading manufacturer of “Digital Earth” maintains the “buy” rating
We maintain that the company’s net profit attributable to the parent company from 2021 to 2023 is predicted to be 215, 305 and 420 million yuan, EPS is 0.98, 1.38 and 1.91 yuan / share, and the current share price corresponds to 76.0, 53.7 and 38.9 times of PE from 2021 to 2023. Considering the company’s outstanding advantages in data, technology and brand in the field of “Digital Earth”, we maintain the “buy” rating.
Signed 507 million large orders in special fields, laying a good foundation for subsequent performance growth
The company announced that the company signed a sales contract with a unit related to business in special fields, with a contract amount of RMB 506847000, involving software development, hardware procurement and system integration. The performance period is from the date of signing the contract to December 31, 2023 (about 2 years). The signing of large orders is conducive to improving the company’s ability to undertake major projects, consolidating the company’s market position in special fields, and is expected to actively promote the company’s future performance.
It is proposed to raise 1.55 billion yuan to build a Chinese version of “Google Earth”
The company plans to raise 1.55 billion yuan, It mainly invests in geoisonline online digital earth construction project (1.3 billion yuan) and replenishes working capital (250 million yuan). The construction objectives of “geoisonline online digital earth construction project” are as follows: (1) realize the localization and substitution of digital earth products and build online digital earth products with international competitiveness; (2) Realize the online operation of the company’s digital earth products and provide global services and operation capabilities; (3) By the end of 2028, the company will have no less than 200 million registered users and become the online digital earth service portal with the largest user scale and the best experience in China. The company is expected to expand new business models and product matrix through the implementation of the project, and expand from special fields, governments and enterprises to the mass customer market.
Risk warning: the risk of tight government expenditure; Market competition intensifies risks.
