Sunsea Intelligent (002313): Continue to deepen the layout of the initial results of the Internet of Things

Sunsea Intelligent (002313): Continue to deepen the layout of the initial results of the Internet of Things

Event: The company released its semi-annual report for 2019, with revenue of 2018H123.

68 ppm, an increase of 29 in ten years.

51%, net profit attributable to mother 0.

430,000 yuan, an average of 12 years.


Opinions: 1. Rapid revenue growth in the Internet 杭州桑拿网 of Things segment + gross margin rebounded into a bright spot.

19H1, in terms of business segments, revenue from IoT products and services13.

5.6 billion (+127 year-on-year.

41%), communications engineering services revenue 6.

3.3 billion (YoY -8.

97%), sales of communications products3.

7.9 billion (YoY-29.


Among them, the rapid growth of IoT product and service revenue mainly benefited from the company’s merger of “cloud + end” IoT development strategy, continued to deepen the three major product lines, and focused on the layout of the four tracks.

In terms of gross profit margin, the gross profit margin of IoT products and services14.

80% (+2 compared to the same period last year).

94pp), communication engineering services 14.

96% (-1% year-on-year.

42pp), sales of communications products26.

95% (0% YoY).


Among them, the increased gross profit margin of IoT products and services is expected to launch mid-to-high-end products with higher gross profit margins for the company, expanding the company’s continued advancement of R & D sharing between Longsun Technology and SIMCom, and enhancing supply chain synergy.

We expect the gross profit margin of this sector to continue to increase in the future.

2. The short-term growth of financial costs dragged by profit is not obvious. It is expected that the pressure of financial costs to complete the restructuring and issuance will help release pressure, and profit growth will increase in line with revenue.

Although the company’s revenue has continued to grow, as the company mainly uses debt financing to supplement operating funds, the expansion of its business has brought about an increase in bank expenditure refunds and financial expenses have increased significantly (financial expenses in 2019H1 0.

690,000 yuan, a sharp increase of 132 previously.

63%), we expect to complete a new phase of private placement (through the shareholders’ meeting on May 6, 2019), and gradually adjust and redistribute the financial pressure caused by expenditures. It is estimated that by 2020, net profit and revenue will be realized.Synchronous growth.
3. The three product lines + four tracks, the continued deepening of the layout of the Internet of Things segment is worth looking forward to.

The company continues to strategically position itself as a leader in the domestic artificial intelligence Internet of Things (AIoT). Based on the advantages of “cloud + terminal”, the company has laid out three product lines: large, medium and large platforms, AIOT smart devices and widely cooperated smart terminals.On this basis, the company’s four major tracks are extended, including the 5G IoT module application ecology, the enabling ecology based on the IoT cloud platform, the smart IoT solution application ecology, and the intelligent IoT device application ecology.

With a clear direction and rapid landing, the company has introduced a large number of AIoT software R & D and sales talents, and successively launched 5G modules, AI neural hub platforms, and various types of smart terminals, smart devices and other innovative products, and in smart cities, smart suites, smart logistics, etc.Multi-collar cities have made applications.

In the coming era of the Internet of Everything, the Internet of Things market has a bright future, and the company’s layout is worth looking forward to.

Profit forecast and investment advice: By adjusting the layout, the company’s Internet of Things segment will further clarify the layout of the “three product lines + four racetracks” on the basis of “cloud + terminal”, and has achieved 19H1 revenue and gross profit marginsThe initial benefits have returned to the fast-growing channel. It is worth looking forward to in the coming tide of Internet of Everything. We continue to be optimistic about the company’s business model and long-term development.

Taking into account the 杭州桑拿 financial pressure brought by business expansion in 19 years, our net profit for the company from 19-20 years will be 3.

03, 4.

3.1 billion is reduced to 0.

9 and 1.

9 trillion, maintaining the overweight rating.

Risk warning: Operators ‘capital expenditures are reduced, new business expansion is less than expected, merger and acquisition asset integration risks are not smooth, financial cost pressures remain high, and risks remain high