\u3000\u3 Guocheng Mining Co.Ltd(000688) 568 Geovis Technology Co.Ltd(688568) )
Investment events: the company released its 2021 annual report: (1) the operating revenue was 1.040 billion yuan, a year-on-year increase of 48.03%; The net profit attributable to the parent company was 220 million yuan, a year-on-year increase of 49.41%; The net cash flow from operating activities was 167 million yuan, a year-on-year increase of 110.13%. (2) Profit distribution plan: 2.05 yuan for every 10 shares.
The development of multiple business lines has accelerated, the company’s revenue and profit have achieved rapid growth, and the cash flow has been optimized. During the reporting period, the company achieved rapid growth in multiple business lines, and the business income in special fields reached 551 million yuan, a year-on-year increase of 16.61%; The revenue of aerospace measurement, operation and control business reached 97million yuan, a year-on-year increase of 289.30%; Smart government business realized a revenue of 237 million yuan, a year-on-year increase of 105.68%; The revenue from meteorological and ecological business was 91 million yuan, a year-on-year increase of 107.26%; The enterprise’s energy business realized a revenue of 19 million yuan, a year-on-year increase of 34.36%. All business lines of the company achieved rapid growth, especially the business lines such as aerospace measurement and operation control and smart government doubled, driving the company’s performance to achieve rapid growth, with revenue growth of 48.03% and net profit growth of 49.41%. In addition, the company’s operating cash flow was further optimized. In 2021, the net cash flow generated by the company’s operating activities reached 167 million yuan, a year-on-year increase of 110.13%, which also achieved rapid growth.
The company continues to increase R & D investment and product competitiveness. The company carries out technological innovation and product upgrading around digital earth basic platform products and application platform products. In terms of technology, the company launched a new generation of digital earth geovis6 based on Beidou grid division theory. In terms of industry, the company further expanded the application of smart city, natural resources, agriculture and forestry, transportation, meteorology, environmental protection, emergency disaster reduction and other fields. During the reporting period. The company invested 159 million yuan in R & D, with a year-on-year increase of 66.79%. The proportion of R & D investment in revenue was as high as 15.26%, with a year-on-year increase of 1.72 percentage points; The number of R & D personnel reached 739, compared with 562 in the same period last year, a year-on-year increase of 31.5%. The technical strength of the company has been continuously enhanced, the product system has been gradually improved, and the competitive advantage has been continuously strengthened.
The group layout has been preliminarily realized, and the ecological prototype has begun to appear. At present, the company has completed the preparation for the establishment 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, forming a group development trend with six sectors as the core, including special fields, smart government, meteorological ecology, aerospace measurement and operation control, enterprise energy and online business. It has established four management headquarters in Beijing, Xi’an, Qingdao and Hefei, and opened more than 20 offices across the country. The company has initially realized the group layout, the sales coverage has been continuously enhanced, and the prototype of product ecosystem has begun to appear. The optimization of organizational system and the improvement of operation efficiency lay the cornerstone of the company’s long-term sustainable development.
Investment suggestion: due to the accelerated expansion of aerospace measurement and operation control, smart city and other fields, we adjust the company’s profit forecast. Before adjustment, we estimate that the company’s revenue in 2022 / 2023 will be RMB 1.452/2.107 billion respectively, and the net profit attributable to the parent company will be RMB 294429 million respectively. After adjustment, we expect that the revenue in 2022, 2023 and 2024 will be RMB 1.539/22.25/3.168 billion respectively, and the net profit attributable to the parent company will be RMB 300/4.29/610 million respectively, corresponding to pe45.5 billion 3 / 31.6 / 22.3x. Considering the continuous high growth of the company’s business and the current undervalued level, the company is given a “buy” rating.
Risk tip: business development is less than expected, and the implementation of policies is slow
