\u3000\u3 Guocheng Mining Co.Ltd(000688) 066 Piesat Information Technology Co.Ltd(688066) )
Event overview on February 26, 2022, Piesat Information Technology Co.Ltd(688066) released the annual performance express of 2021: the operating revenue in 2021 was 1.468 billion yuan, with a year-on-year increase of 73.42%; The net profit attributable to the parent company was 198 million yuan, a year-on-year increase of 53.29%; The net profit deducted from non parent company was 154 million yuan, with a year-on-year increase of 34.13%.
China Spacesat Co.Ltd(600118) remote sensing application leader, creating a platform competitive advantage of "pie + industry"
According to SIA's 2020 satellite industry status report, the total revenue of the global satellite service industry in 2019 is $123 billion, and the global satellite remote sensing service industry is expected to grow to $4.36 billion in 2025 Piesat Information Technology Co.Ltd(688066) business focuses on the downstream applications of satellite industry. At present, its main business includes remote sensing basic software products, system design and development and remote sensing cloud services.
We believe that positive changes have taken place at both ends of the supply and demand of the satellite remote sensing industry, mainly including: 1) from the upstream, the number of remote sensing satellite launches has increased rapidly. According to the data of the prospective research institute, by April 2021, the number of commercial remote sensing satellites in China had reached 59, accounting for 27.44%; 2) From the perspective of application, the demand for high-precision and high-quality spatial geographic information services is increasing. At the same time, the needs of digital battlefield simulation, emergency management and smart city are emerging. 3) From the perspective of target market and business model, end users are expected to extend from national and provincial to urban and county-level, and from to g to to to B. The processing of remote sensing big data is becoming intelligent, the availability of remote sensing data is improved, and its use threshold is reduced. Many small and medium-sized enterprises also begin to accept remote sensing application services through SaaS.
We believe that the company's strategy is clear, the business field is continuously extended, and synergy is formed at the same time. The company participates in the design and software development of small satellite ground station for environmental disaster reduction, and forms its own basic software products. By participating in the national high score project, the industrialization of remote sensing application will be realized. According to the company's prospectus and announcement, the company began to undertake the design and development of Beidou No. 3 ground system in 2014 and cut into the application field of Beidou. The software cloud transformation will be carried out in 2019 and the remote sensing satellite constellation will be launched from 2022 to 2023, which is expected to form a stable business model and a platform competitive advantage of "pie + industry".
Improve the marketing system, increase the local market demand and enhance the competitiveness in special fields
According to the company's 2021 interim report, the company's revenue structure consists of three product lines: spatial infrastructure planning and construction (42%), pie + industry (55%) and cloud services (3%), of which pie + industry is the main driving force for the acceleration of the company's performance. According to the disclosure of the company's performance express, the company's performance maintained rapid growth in 2021, mainly due to:
1) improve the marketing system, increase the local market volume, and the income of the downstream "pie + industry" product line increases rapidly. The announcement of the company's performance express mentioned that "new orders signed in the whole year reach a new high". In the field of emergency management, in 2020, the State Council officially launched the special national comprehensive risk survey of natural disasters, which covered about 3000 counties across the country, releasing a large amount of new demand. The company provides risk survey software and risk monitoring and early warning system for the emergency management industry. In the field of natural resources, on February 25, 2022, the official website of the Ministry of natural resources issued the notice on comprehensively promoting the construction of real scene 3D China, which requires that by 2025, the terrain level real scene 3D of 5-meter grid will cover the land and main islands of the country, and the urban level real scene 3D with 5 cm resolution will initially cover cities above the lower level. The company provides real 3D China Construction and natural resources monitoring for the natural resources industry, which is expected to benefit from the rapid development of the industry.
2) the competitiveness of informatization construction in special fields has been improved. The company has become one of the few units with the ability to undertake overall projects. Its business is developing towards model and multi service, and its income is growing steadily. In terms of special fields, benefiting from the moderate rise of national defense and military expenditure and the transfer of the core contradiction of military equipment from mechanization to informatization, the company constructs a digital battlefield for special fields based on C4ISR theoretical framework and provides integrated technical services of battlefield perception, command and control and training and warfare. At present, the air space integration solutions provided by the company include: Digital twinning of aerospace equipment system, integration of virtual and real, construction of Surveying and mapping geographical environment, typical target identification and change detection, meteorological and hydrological intelligent analysis and prediction, command and decision support and simulation training.
Sign a strategic cooperation agreement with Haikang to build its own constellation and open up the upstream and downstream of the satellite industry chain
According to the official WeChat official account, Piesat Information Technology Co.Ltd(688066) has signed strategic agreements with intelligent Internet of things solutions and big data provider Hangzhou Hikvision Digital Technology Co.Ltd(002415) . In the future, it will play an advantage of integration of space and space, and cooperate in resource sharing, channel opening and joint promotion of schemes. We believe that based on the accumulation of the application market of satellite remote sensing industry, the company continues to expand ecological cooperation, which can promote product innovation, R & D and market promotion. In addition, the company is also preparing to build independent and controllable remote sensing satellites and become an international supplier of satellite data products and services. According to the data of Mordor intelligence, it is estimated that the sales space of China Spacesat Co.Ltd(600118) data products will be about 10 billion yuan by 2025. According to the company's announcement, the company plans to launch the country's first InSAR satellite constellation by the end of 2022, extending to the upstream of the industrial chain. This type of satellite is scarce and can obtain scarce DEM data. The company can directly or process into data product sales to increase the source of income. It can also be used as a data resource to empower the existing pie + industry and cloud service product line, form a business closed loop of remote sensing data production, processing and application, and contribute to the performance increment for the long-term development of the company.
Investment advice
At present, the satellite remote sensing industry is facing positive changes in both supply and demand. Piesat Information Technology Co.Ltd(688066) as a leading enterprise in the field of China Spacesat Co.Ltd(600118) remote sensing, it has benefited from the high demand for multi-point flowering of satellite applications for a long time, and is expected to make use of the platform advantages of "pie + industry" to promote continuous growth of performance. It is estimated that the revenue growth rate of the company from 2021 to 2023 will be 73.4% / 44.5% respectively 2% / 33.6%, and the growth rate of net profit attributable to the parent company was 53.5% respectively 3% / 49.8% / 38.5%, covering the investment rating of Buy-A for the first time. Give a 6-month target price of 80 yuan, equivalent to 50 times the dynamic P / E ratio in 2022.
Risk tip: the implementation of policies in remote sensing industry is not as expected; The company's cloud service customer expansion is less than expected; The company's InSAR satellite launch was less than expected and the depreciation and amortization exceeded expectations.
