Wasion Information: Multi-level Expansion of Domestic IoT Intelligent Dashboard Advantage Supplier Business
Key points of investment: The company is a leading domestic supplier of smart meters for the Internet of Things. The actual controller controls 74% of the company’s equity.
The company is a leading domestic IoT smart meter and IoT utility solution provider. It expands to water, gas, fire protection and other fields based on electric power smart meters. Its products completely replace the IoT perception layer, network layer and application layer, and downstreamCustomers mainly include well-known domestic enterprises such as State Grid and China Southern Power Grid.
Among the company’s existing businesses, the communication gateway business and the electric detection terminal accounted for 46% / 18% respectively.
The actual controller, Ji Wei, is composed of relatives who act in concert, and controls 74% of the company’s equity.
The company is in a stage of steady and rapid growth, and the gross profit margin is slightly delayed beyond stability.
The company benefited from the advancement of the Internet of Things in public utilities, and its main business continued to grow steadily, achieving revenue in 2016/2017/20186.
390 thousand yuan, CAGR23.
6%; net profit attributable to mother is 0.
7.7 billion, CAGR 48%.
In 2018, due to changes in the demand structure of the downstream power industry, the company’s relevant winning bids decreased, resulting in improved revenue and profit growth.
We believe that the Internet of Things for electricity, coal, water and other meters is a long-term trend, and the company’s business is generally in the channel of demand expansion.
The company’s consolidated gross profit margin for 2016/2017/2018 was 27.
35% / 35.
61% / 32.
68%. After experiencing the product expansion period and production optimization period, the gross profit margin has increased to a certain extent. However, due to the original growth of communication module products, the gross profit margin declined slightly in 2018. But overall, the company ‘s comprehensive gross profit margin is comparableThere are no significant differences between companies.
The company has rich experience in multiple core areas of IoT applications, and multiple fund-raising projects have contributed to the overall technological innovation of IoT.
As one of the earliest professional engineers and smart utilities manufacturers in the country, the company has independently developed multiple core technologies in the fields of communications, sensing, embedded systems, edge computing, etc., covering all levels of the Internet of Things.
At present, the company is researching and developing 16 industry-leading technologies around its main business, and the total estimated expenditure is about 1.
In the past three years, the company’s core technology product revenue accounted for more than 98% of its operating revenue.
The company intends to raise funds for the science and technology board for the expansion of the IoT sensing layer equipment and technical transformation projects (total 1.
23 ppm), IoT network layer equipment expansion and technological transformation project (2.
500,000 yuan), comprehensive research and development center project of the Internet of Things (1.
4.7 billion yuan) to provide financial support while supplementing working capital (1.
300 million), for the company to achieve higher capacity expansion and technological innovation in the Internet of Things industry.
The company chooses a listing 西安耍耍网 standard with an estimated market value of not less than RMB 100,000 and a net profit of positive in the past two years and gradually not less than 5,000 million US dollars. We think it is appropriate to use a comparable company PE estimation method.
We believe that the company’s public utility Internet of Things technology and model has been fully matured, and its business has achieved high penetration in the downstream power market.The stages are close, and the PE estimation method of comparable companies should be used for estimation.
Risk reminder: high customer concentration, hindering expansion of downstream companies