\u3000\u3 Guocheng Mining Co.Ltd(000688) 568 Geovis Technology Co.Ltd(688568) )
The leading manufacturer of “Digital Earth” maintains the “buy” rating
Due to the abundant orders in hand, we slightly raised the company’s forecast of net profit attributable to the parent company from 2022 to 2023 to 321 million yuan and 451 million yuan (the original forecast was 309 million yuan and 425 million yuan), increased the forecast for 2024 to 630 million yuan, and EPS to 146, 2.05 and 2.86 yuan / share. The current stock price corresponds to 42.5, 30.3 and 21.7 times of PE from 2022 to 2024. Considering the company’s outstanding advantages in data, technology and brand in the field of “Digital Earth”, Maintain the “buy” rating.
Excellent cash flow performance and bright growth of civil market
(1) in 2021, the company realized an operating revenue of 1.040 billion yuan, a year-on-year increase of 48.03%. In terms of revenue structure, the revenue from special fields (including aerospace measurement, operation and control) was 648million yuan, with a year-on-year increase of more than 30%; Smart government revenue was 237 million yuan, a year-on-year increase of 105.68%; Meteorological ecology and enterprise energy business increased by 105.68% and 107.26% respectively year-on-year. (2) The net profit attributable to the parent company was 220 million yuan, a year-on-year increase of 49.41%; The net profit deducted from non parent company was 150 million yuan, with a year-on-year increase of 22.04%. On the one hand, as the company continued to increase investment, sales expenses, management expenses and R & D expenses increased by 43.30%, 50.12% and 59.97% respectively year-on-year; On the other hand, the share based payment fee of the company in 2021 increased significantly compared with that in 2020. The gross profit margin of the company’s sales was 49.48%, a year-on-year decrease of 5.13 percentage points. On the one hand, it is due to the increase in the proportion of hardware and integration in some large projects, and on the other hand, it is due to the relatively low gross profit margin in some new industries at the initial stage of expansion. (3) The company’s net cash flow from operating activities was 167 million yuan, with a year-on-year increase of 110.13%. The company increased the collection of accounts receivable and strengthened daily capital control. In addition, at the end of 2021, the company’s prepayments increased by 73.75% year-on-year, mainly due to the increase of orders on hand.
Adjust the organizational structure and realize the strategic transformation of collectivization
In 2021, the company has formed a group development trend with six sectors as the core: special fields, smart government, meteorological ecology, aerospace measurement and operation control, enterprise energy and online business, and completed the preparation of six subsidiaries, including star map space, star map measurement and control, star map weitianxin, star map wisdom, star map earth and star map defense. In the future, based on the steady growth of the company’s existing business in special fields, each subsidiary will deeply explore the subdivided market, configure professional technical teams, and further promote the development of the subdivided field of digital earth.
Risk warning: the risk of tight government expenditure; Risk of intensified market competition
