\u3000\u3 Jointo Energy Investment Co.Ltd.Hebei(000600) 728 Pci Technology Group Co.Ltd(600728) )
Event overview
On March 4, Pci Technology Group Co.Ltd(600728) released the annual performance express of 2021. In 2021, the company achieved an operating revenue of 6.259 billion yuan, a year-on-year increase of 46.02%; The net profit attributable to the parent company was 317 million yuan, a year-on-year increase of 245.06%; Net profit deducted from non parent company was 290 million yuan, with a year-on-year increase of 272.81%.
The achievement meets the expectation, and many projects are delivered on schedule
On the revenue side, the company achieved an operating revenue of 6.259 billion yuan in 2021, with a year-on-year increase of 46.02%. The high growth of the company’s operating revenue is mainly due to: 1) the high prosperity of the artificial intelligence industry. The 14th five year plan clearly proposes to upgrade artificial intelligence into a national strategic scientific and technological force. The company has entered the stage of scale implementation of newly signed and on-hand intelligent orders in recent three years; 2) The company’s artificial intelligence technology has been continuously implemented, and the sales of self-developed products with high gross profit margin such as “rail transit smart station” and “IDPs urban traffic brain” have increased rapidly; 3) In 2021, the company’s investment in Ruifan technology was transferred from long-term equity investment to investment income recognized in other non current financial assets. On the profit side, the company realized a net profit attributable to the parent company of 317 million yuan in 2021, with a year-on-year increase of 245.06%; Net profit deducted from non parent company was 290 million yuan, with a year-on-year increase of 272.81%. This is mainly due to: 1) the company continues to increase the proportion of self-developed products with high gross profit margin in the project and continuously optimize the product structure; 2) The scale effect is prominent, and the cost side is well controlled. Looking ahead, we believe that, on the one hand, the company’s performance will grow steadily with the high outlook of the artificial intelligence industry; On the other hand, the proportion of self-developed products of the company continues to increase, and the profit is expected to accelerate the release.
Continue to build an artificial intelligence middle platform, implement self-developed products and improve gross profit margin
From the perspective of the industry, the artificial intelligence industry has a high outlook, and the rail transit network of urban agglomeration and metropolitan area provides a good external environment for the development of the company. From the perspective of the company, the company has paid more attention to the research and development of artificial intelligence, digital twins, computer vision and other technologies. Based on deep project experience, the company has formed three technical platforms: AI, AR and data, paid close attention to urban transportation and rail transit, urban security and emergency scenarios, accelerated the implementation of artificial intelligence technology, and continuously improved the “rail transit smart station” The proportion of self-developed products with high gross profit rate such as “IDPs urban traffic brain” in the project, optimize the product structure, and continuously improve the comprehensive gross profit rate.
Hold high the banner of digital economy, set up benchmark projects, and accelerate the promotion of the whole country
The 14th five year plan for digital economy development released in 2021 pointed out that by 2025, the added value of core industries of digital economy will account for 10% of GDP. This policy is conducive to the development of digital economy, and the two main application scenarios of rail transit, urban traffic core track and urban safety and emergency management focused by the company are important links in industrial digitization. On the one hand, the company is one of the first cities to enter the smart city and smart rail transit, and has accumulated profound industry know-how and data. So far, many projects have been delivered. The delivery of these projects is conducive to setting a benchmark effect and laying a foundation for the subsequent expansion of the company’s business to other places; On the other hand, based on the bay area of Guangdong, Hong Kong and Macao, the company has built six regional business platforms to radiate the whole country. At present, the company has won the bid for rail transit and smart city projects in Beijing, Shanghai, Wuhan and other places. The orders on hand increase the certainty of the continuous high growth of the company’s performance.
Investment advice
Under the catalysis of policies such as the accelerated landing of AI + scenarios and digital economy, the company focuses on two main application scenarios: rail transit, urban traffic core track and urban safety and emergency management. It is expected to achieve rapid volume and continuous expansion of application scenarios with the help of industry experience and technology. We expect the company to achieve revenue of 6.3 billion yuan / 7.8 billion yuan / 9.7 billion yuan from 2021 to 2023, with a year-on-year increase of 46% / 25% / 25%; The net profit attributable to the parent company was RMB 320 / 600 / 800 million, with a year-on-year increase of 245% / 88% / 35%, maintaining the “buy” rating.
Risk tips
1) R & D breakthrough is less than expected; 2) Policy support is less than expected; 3) Project delivery was less than expected.
