\u3000\u3 Guocheng Mining Co.Ltd(000688) 568 Geovis Technology Co.Ltd(688568) )
Event: on April 13, the company disclosed the annual report of 2021. In 2021, the company's revenue was 1.040 billion yuan (+ 48.03%), the net profit attributable to the parent company was 220 million yuan (+ 49.41%), the net profit not attributable to the parent company was 150 million yuan (+ 22.04%), the gross profit margin was 49.48% (- 5.13pcts), and the net profit margin was 23.30% (+ 1.72pcts).
Key investment points:
The military and civilian market development has achieved remarkable results, and the decline of gross profit margin does not change the rapid growth trend of the company's performance
During the reporting period, benefiting from the upgrading of the company's marketing network, based on the group structure, taking into account the industry expansion and regional market coverage, strengthening the development of market segments, and making remarkable achievements in industrial chain extension, core technology accumulation, application expansion and ecological layout, the company's operating revenue (RMB 1.04 billion, + 48.03%) continued the rapid growth in recent three years. The company's gross profit margin (49.48%, - 5.13 PCTs) decreased. Judging from the rapid growth of the company's outsourcing cost (278 million yuan, + 82.59%), we think it may be related to the extension and expansion of some products of the company in relevant industrial chains. At the same time, the growth of the company's net profit attributable to the parent company (RMB 220 million, + 49.41%) basically kept pace with the growth of revenue, and the net interest rate (23.30%, + 1.72 PCTs) increased. We believe that it is mainly related to the decrease of the company's three fee rate (18.63%, - 0.46 PCTs) and the significant increase of government subsidies (RMB 56 million, + 304.58%).
In terms of products, the company's main products are geovis technology development and service, geovis all-in-one machine product sales, system integration, geovis software sales and data service.
During the reporting period, the company's geovis technology development and service revenue (783 million yuan, + 47.31%), geovis software sales and data service revenue (89 million yuan, + 119.32%) and system integration business revenue (115 million yuan, + 143.43%) doubled. We believe that the main reason is the expansion of the company's business scale and the continuous growth of product orders. The company's sales revenue of geovis all-in-one machine products (52 million yuan, - 37.01%) decreased, mainly due to the fact that some all-in-one machine projects are still in the application stage in the opening year of the 14th five year plan.
The application fields of the company's products can also be divided into special fields and civil fields (including smart government, meteorological ecology, enterprise energy and other fields).
During the reporting period, the company's revenue in the civil field (489 million yuan, + 112.44%) doubled, accounting for a significant increase in the proportion of total revenue (37.73%, + 8.49 PCTs). In particular, the revenue from smart government (237 million yuan, + 105.68%) and meteorological ecology (91 million yuan, + 107.26%) increased significantly, reflecting that the company's digital earth business has made great progress in the expansion of civil field. At the same time, the company's overall revenue in special fields (648 million yuan, + 30.27%) also continued the rapid growth trend, especially in the field of aerospace measurement, operation and control (97 million yuan, + 289.30%), while the gross profit margin in the field of smart government (42.72%, - 5.55 PCTs) and the gross profit margin in the field of aerospace measurement, operation and control (54.87%, - 12.51 PCTs) decreased significantly. We think it may be the above two fields, While the expansion efforts have been strengthened and the revenue has increased significantly, the outsourcing cost has increased significantly.
On the whole, we believe that during the reporting period, the company's products achieved remarkable expansion in the military and civilian market, especially the substantial increase in civil revenue, which is the main reason for the rapid growth of the company's annual revenue. In the future, in the process of the company's market expansion in some remote sensing fields, due to the growth of the procurement scale of subdivided and diversified remote sensing data or the increase of relevant business costs caused by the expansion of industrial chain, the fluctuation of gross profit margin of some businesses is a high probability event. However, we judge that under the background of rapid income growth, the decline of gross profit margin has limited impact on the general trend of rapid growth of the company's overall profit.
It is planned to realize digital earth online operation through fixed growth, and cloud service is expected to lay the cornerstone of the company's medium and long-term rapid development
In November 2021, the company announced that it planned to raise no more than 1.55 billion yuan by issuing shares to specific objects for geovision online digital earth construction project and supplement working capital. Among them, the company planned to invest 1.3 billion yuan for geovision online digital earth construction project, which specifically includes geovision R & D center construction, intelligent data factory construction and online digital earth R & D, The construction period of the project is 4 years. The project objectives include realizing the localization and substitution of digital earth products and building online digital earth products with international competitiveness; Realize the online operation of the company's digital earth products and provide global services and operation capabilities; Achieve no less than 200 million registered users by the end of 2028, and become the online digital earth service portal with the largest user scale and the best experience in China.
We believe that, conceptually, digital earth integrates satellite application technologies, including satellite "communication and remote control", and is the basic tool in the process of digital integration between satellite application industry and traditional industry. Through this fund-raising and investment project, the company will distribute the digital earth products accumulated by the company from offline to online, which will have an important impact on the expansion of digital earth application field, From the perspective of the project construction period and the company's objectives, we judge that digital earth cloud service is the layout of the company's medium and long-term development of digital earth business, and the positive impact on the company's performance is expected to be gradually reflected in the company's profit statement in the middle and later stage of the 14th five year plan.
The company has strong cost control ability, and multiple financial data show that the company has sufficient orders on hand
In terms of expenses, during the reporting period, the company's three fee rate (18.17%, -0.46pcts) decreased, reflecting the company's strong ability to control expenses in the process of expanding the market. Among them, the financial expense ratio (- 0.85%, - 0.80pcts) decreased significantly, mainly due to the increase of interest income. The company's R & D expenses (142 million yuan, + 59.97%) increased significantly, mainly due to the company's continuous increase in R & D investment, improving product competitiveness and increasing R & D investment in products such as geovis6 digital earth. Judging from the rapid growth of the company's R & D personnel (739, + 31.49%), the company is still in the stage of rapid growth. During the reporting period, the company applied for 188 new intellectual property rights focusing on big data and visualization, artificial intelligence, cloud computing and high-performance computing, aerospace big data processing, aerospace big data application, Beidou data access and application, including 22 invention patent applications and 86 software copyrights; 170 new intellectual property rights have been obtained, including 15 invention patents and 86 software copyrights. The company has invested 159 million yuan in research projects during the reporting period, with a cumulative investment of 202 million yuan, accounting for 14.50% of the company's estimated total investment. We judge that the company's R & D investment scale will maintain a high growth level in the future, which is also the guarantee for the company's digital earth business to maintain its competitiveness in the expansion of downstream application market.
In terms of cash flow, during the reporting period, the net cash flow generated by the company's operating activities (167 million yuan, + 110.13%) increased significantly, mainly due to the company's increasing collection of accounts receivable and strengthening daily capital control; The net cash flow from the company's investment activities (- 98 million yuan, a decrease of 73 million yuan compared with 2020) decreased, mainly due to the significant increase in the investment funds paid by the company compared with the same period last year; The net cash flow generated by the company's financing activities (88 million yuan, - 88.15%) decreased significantly. On the one hand, the decrease was caused by the company's no new raised funds in 2021, and on the other hand, the dividend paid by the company increased significantly compared with the same period last year.
In terms of other financial data, at the end of the reporting period, the company's inventory (167 million yuan, + 68.52%) increased significantly, including a significant increase in inventory goods (49 million yuan, + 525.61%) and an increase in contract performance costs (115 million yuan, + 25.30%). At the same time, the company disclosed sales contracts related to special fields in December 2021, with a total amount of 507 million yuan, of which 84 million yuan had been received by the end of the reporting period, We believe that the above data shows that the company has sufficient orders (or intention) at present. Under the background of the rapid expansion of the company's business in special fields and civil fields, it will continue to be cashed into the income statement in the future.
The research and development of a new generation of digital earth space-time engine of "integrated guidance and remote control" has been completed, laying the foundation for the rapid development of the company in the 14th five year plan
The company is a state-owned holding high-tech enterprise invested by the Aerospace Information Innovation Research Institute of the Chinese Academy of Sciences. As the first enterprise engaged in the R & D and industrialization of digital earth products in China, the company has long focused on the digital earth industry, continued to develop digital earth related products and core technologies, and successively launched geovis digital earth basic software series products. On this basis, it has formed a special field, smart government, meteorological ecology Geovis digital earth application software series products, with the core businesses of aerospace measurement and operation control, enterprise energy and online business, provide software sales and data services, technology development and services, all-in-one products, system integration and other businesses for the government, enterprises, special fields and the public.
The company's software and data service business mainly includes digital earth basic software platform, digital earth application software platform and data products. Among them, the digital earth basic software platform is the company's core software product. It takes remote sensing surveying and mapping data as the basic framework data, reconstructs the three-dimensional virtual earth framework model based on the unified space-time benchmark, and provides basic data support and common service support for various industry applications; At the same time, according to the needs of the industry, the company integrates the spatial information of various industries, expands industrial applications, creates an industry-specific application software platform, and directly sells complete sets of software products for users; Data service refers to that the company relies on the processing software independently developed to sell the data products processed based on the original data to users.
Technology development and service refers to the customized application system provided by the company to meet the needs of specific users through purchasing third-party plug-ins and adapting with third-party software and hardware based on Digital Earth related products and core technologies.
The sales of all-in-one machine products is an all-in-one machine product that the company provides users with rapid delivery by loading the Digital Earth software products into special hardware products according to the customer's demand for the integration of software and hardware of digital earth products.
The company's system integration business is mainly to provide system integration business based on third-party software and hardware in order to maintain some customer business.
Overall, the core competitiveness of the company's four major businesses lies in geovis digital earth basic software platform and geovis digital earth application software platform.
① geovis digital earth basic software platform
In terms of geovis digital earth basic software platform, during the reporting period, the company developed a new generation of digital earth geovisibase Beidou grid space-time engine, and created a new generation of digital earth geovis6 with "Beidou as the body and high score as the image", which provides a basis for creating richer digital earth product forms and application modes, and provides assistance for China's independent and controllable digital earth ecological construction.
Among them, in terms of digital bearing, the company has created an independent and controllable geovisibest-db spatio-temporal database V6 0, and geovisicenter Aerospace big data sharing service platform V6 1. As the external unified service output of the digital earth grid engine, it provides the ability to connect, store, organize, distribute, share and analyze the space-time big data of the digital earth, and can provide stable and efficient data services and application support services for the applications of various industries of the new generation of digital earth.
In terms of data processing, the company has developed geovisifactory Aerospace big data intelligent processing platform V6 1. It has formed a scheduling platform for screening, organizing and data processing of massive multi-source heterogeneous image data. At the same time, it has built a geovisibrain intelligent interpretation platform for aerospace big data V6, which integrates Aerospace data access, online computing, online editing and achievement release 0
In terms of data visualization, geovisi Explorer Aerospace big data visualization platform V6.0 is developed 1. For middle and macro scene developers, a drag and drop digital earth low code development platform is developed; For fine scene developers, geovisireal visual simulation visualization engine V6 is developed 0 For content producers, we developed geoppt spatio-temporal scene editor products. At the same time, we practiced the technical exploration from offline digital earth to online digital earth with the help of cloud native technology, which has accumulated profound technical reserves for the research and development of geoisonline online digital earth.
In terms of data, the "basic data + thematic data" space and space big data system has been constructed, and the digital earth data standard specification has been formed, which can be used as the basis for the construction of digital twin and digital earth space-time big data standard system. At the same time, a new generation of geovisidatabox space-time big data cloud box products will be formed to provide comprehensive, accurate and lightweight multi-source space-time big data products and services in the product form of "data + software + hardware", which can realize the rapid construction of two and three-dimensional platform map framework models, meet the flexible and updated data needs, and provide light and efficient data services for business applications in various industries.
② geovis digital earth application software platform
During the reporting period, the company continuously enriched and expanded the application fields of digital earth products, and continuously expanded the application plug-ins in the application software platform. On the basis of the original special fields, meteorology, transportation, commercial aerospace and other industries, the company further strengthened the layout of civil markets such as agriculture, forestry, emergency and the public.
Specific products include applications in agriculture, emergency, transportation, water conservancy, forestry and grass, smart city and other industries, and build a "geovis + smart management" product line based on geovis 6 digital earth basic platform; A closed-loop product system of meteorological observation and detection equipment R & D and production, software technology development and professional information service is constructed for the application of meteorology, ocean, environment and other industries; Facing the field of aerospace measurement, operation and control system and service, an insight spatial information analysis platform is developed based on geovis6 digital earth basic platform; For special field applications, a special digital earth application platform is developed based on geovis6 digital earth basic platform; For enterprise application, based on geovis 6 digital earth basic platform and according to the needs of linear asset management enterprises (such as oil, gas, electric power, etc.), geovis enterprise digital earth application platform is developed; For mass applications, the company is based on independent digital earth theory, independent space infrastructure, independent digital earth software and independent IT infrastructure
