\u3000\u3 Jointo Energy Investment Co.Ltd.Hebei(000600) 728 Pci Technology Group Co.Ltd(600728) )
Key elements of the report:
On the evening of March 18, the company released its annual report for 2021. In 2021, the company realized an operating revenue of 6.224 billion yuan (YoY + 45.19%); The net profit attributable to the parent company is 314 million yuan (YoY + 242.27%); Deduct 294 million yuan (YoY + 277.05%) of net profit not attributable to parent company. The performance is in line with expectations.
Key investment points:
Revenue increased rapidly, and the large volume of self-developed products led to the increase of gross profit margin: from the perspective of business, the main reason for the rapid growth of the company’s revenue is the delivery and landing of multiple rail transit projects in 2021, resulting in the revenue of the company’s industrial intelligent solutions of 2.843 billion yuan, a year-on-year increase of + 82.92%. At the same time, the company continued to develop self-developed products. The implementation of AI technology transformation brought self-developed product revenue of 526 million yuan, a year-on-year increase of + 30.65%. The gross profit margin of the business reached 63.14%, with a year-on-year increase of + 8.14pct, driving the overall gross profit margin of the company to + 0.98pct year-on-year. On the expense side, the sales / management expense ratio of the company in 2021 decreased by 0.78/0.10pct respectively year-on-year. In terms of cash flow, the absolute value of operating net cash flow decreased by 35.24% year-on-year due to multiple lines of rail transit projects entering the preparation cycle, but the cash to cash ratio and net to cash ratio were 1.15 and 1.25 respectively, and the cash quality of operating performance was good.
Focus on the “big transportation” strategy and move the intelligent business to the whole country: in 2021, the company focused on promoting the upgrading and reform of organizational structure, creating six regional business platforms, and driving the increase of order business opportunities through localized operation, marking that the company’s intelligent business is moving from Dawan District to the whole country. In terms of newly signed orders, the company has obtained orders for smart Metro professional products and solutions in Foshan, Wuhan, Shenzhen, Beijing, Hefei and other places. After Guangzhou and Changsha, the company has promoted large-scale integrated projects of rail transit intelligence in key cities, and further expanded its market advantage in rail transit digitization; “IDPs urban traffic brain” is fully applied in Shanghai urban transportation system, laying a good foundation for the future sales expansion of the company’s urban intelligent transportation business in key cities across the country.
Continue to add AI and digital twin, and strengthen the technical advantages by constant increase: Digital twin and simulation technology are the key layout fields of the company’s new generation products, and have been applied in the company’s smart station and traffic brain products. In 2021, the company will further improve the three technical engines of visual algorithm middle stage, data middle stage and digital twin middle stage and the public development platform, and continuously improve the standardization of algorithm training process and core code module. In the past three years, the company has applied for 100 patents related to artificial intelligence and digital twin Technology (84 invention patents), obtained 39 patent authorizations (28 invention patents), and obtained 67 software copyrights. On February 26, the company issued a fixed growth plan, which plans to raise 3.314 billion yuan, of which 1.852 billion yuan will be used for the research and development of digital twin core technologies and the innovation of “big transportation” digital products, so as to further improve the company’s technical barriers.
Profit forecast and investment suggestions: the company has enabled the transformation and upgrading of digital intelligence in the transportation industry with AI, digital twin core technology and profound industry know-how accumulation. During the 14th Five Year Plan period, under the favorable policies of digital economy and new infrastructure, the company’s performance is expected to continue to grow at a high speed. It is estimated that the company’s revenue in 22-24 years will be 8.117/10.467/13.206 billion yuan respectively, EPS will be 0.30/0.43/0.59 yuan respectively, and PE’s closing price on March 18 will be 7.64 yuan, 25.89x/17.68x/13.04x respectively, maintaining the “buy” rating.
Risk factors: under the repeated epidemic situation, the project construction progress is less than expected, the product process is less than expected, the investment in new infrastructure is less than expected, and the market competition is intensified.
