\u3000\u3 Jointo Energy Investment Co.Ltd.Hebei(000600) 728 Pci Technology Group Co.Ltd(600728) )
Event:
The company released the first quarter report of 2022. The company achieved an operating revenue of 1.036 billion yuan in the first quarter, a year-on-year increase of 1.20%; The net profit attributable to the parent company was 370579 million yuan, a year-on-year increase of 117.08%; Deduct the net profit not attributable to the parent company of 324818 million yuan, with a year-on-year increase of 102.91%.
Key investment points:
The growth rate of net profit attributable to the parent company was bright, and the gross profit margin continued to increase as scheduled: the growth rate of net profit attributable to the parent company in the first quarter significantly exceeded the growth rate of revenue, mainly due to: 1) the company continued to optimize the business structure, rail transit, urban transportation and other intelligent projects were delivered as planned, the related business revenue nearly doubled year-on-year, and the ICT products and services business with low gross profit fell year-on-year, accelerating the growth of the overall business gross profit. 2) The company continued to introduce self-developed intelligent products with high gross profit. In response to the needs of epidemic prevention and control, the company launched a series of scientific and technological epidemic prevention products such as “epidemic guard” and promoted them in many places. In the first quarter, the company’s gross profit margin increased by 1.49pct to 15.13% year-on-year. 3) The company adopted sound business strategies and strict risk control measures, resulting in a year-on-year decrease in accounts receivable, a decrease in credit impairment losses and an improvement in operating net cash flow.
Chengdu’s large orders highlight the competitive advantages of products and are expected to thicken the company’s performance: on April 6, the company issued the bid winning announcement of wholly-owned subsidiary projects. Xinjiadu, a wholly-owned subsidiary, as the leader of the consortium, won the bid for the integrated monitoring (including communication) system integration and installation project of Chengdu rail transit line 17 phase II, line 18 phase III and line 19 phase II, with a total bid amount of 1.291 billion yuan. After Guangzhou and Changsha, the company won the bid again with the business model of “core independent products + industry solutions”. It is also the intelligent project with the largest bid winning amount in the western region. The traditional advantage field of the company’s rail transit business is Dawan district. This breakthrough in key cities in the West indicates that the product competitiveness of the company’s rail transit business has been fully recognized by customers. In the future, the company’s business layout is expected to accelerate its expansion to the whole country. According to the past project construction progress, the revenue of the order is expected to be recognized by stages within 1-3 years. Combined with the amount of orders in hand previously announced by the company (15.866 billion yuan at the end of 21), it is expected that the company will still be in the intensive delivery period of orders in the next three years, and the performance is expected to be fully released.
Build an AI industry ecosystem, and the joint-stock company Yuncong technology is about to land on the science and Innovation Board: the company attaches great importance to the construction of the artificial intelligence industry ecosystem and has invested in a number of AI companies with leading technologies. Cloud technology, which holds 7.82% of the company’s shares, was approved to register on the science and Innovation Board on April 6. Yuncong technology is a leading enterprise in artificial intelligence in China, and its technical level in AI vision is at the world leading level. The company and Yuncong technology have business synergy in the field of intelligent transportation. The two sides are expected to cooperate to explore the application of AI cutting-edge technologies in the field of transportation.
Profit forecast and investment suggestions: under the background of steady growth, it is expected that rail transit construction will still become a key investment field in various regions, and the ecological construction of intelligent rail transit industry supporting it is also expected to accelerate. The company’s AI, digital twin core technology and profound industry know-how accumulation enable the transformation and upgrading of digital intelligence in the transportation industry. It is expected to fully benefit from the dividends of digital economy and new infrastructure policies during the 14th Five Year Plan period. It is estimated that the company’s revenue in 22-24 years will be 8.117/10.467/13.206 billion yuan respectively. Based on the principle of prudence, without considering the investment income brought by the listing of cloud technology, the net profit attributable to the parent company is expected to be 5.19/7.60/1.030 billion yuan respectively, and the corresponding closing price of PE on April 19 is 7.04 yuan, 23.86x/16.30x/12.02x respectively, maintaining the “buy” rating.
Risk factors: under repeated epidemics, the project delivery progress is less than expected, the commercialization process is less than expected, the new infrastructure investment is less than expected, and the market competition is intensified.
