\u3000\u3000 Queclink Wireless Solutions Co.Ltd(300590) (300590)
Announcement summary: the company released the performance forecast for 2021. It is expected to realize the net profit attributable to the parent company of 155-183 million yuan in 2021, with a year-on-year increase of 71.33% - 102.28%, deducting the net profit not attributable to the parent company of 140-167 million yuan, with a year-on-year increase of 135.28% - 180.66%.
Q4 performance recovered month on month, and the annual revenue reached a new high. The company expects the operating revenue to exceed 900 million yuan in 2021, with a year-on-year increase of about 95%, maintaining a high growth throughout the year, and the exchange loss caused by the fluctuation of US dollar exchange rate is about 6.5 million yuan. Q4's single quarter revenue is expected to be 319 million yuan, with a year-on-year increase of 88.26% and a month on month increase of 55.54%. The net profit attributable to the parent company is expected to be 43.2 million yuan - 71.2 million yuan, with a median of 57.2 million yuan, a significant year-on-year increase of 102.84% and a month on month increase of 45.39%. The profitability of the company is gradually restored. During the reporting period, the company actively carried out market expansion and application field extension, developed Internet of things application scenarios such as micro travel market, accelerated China's market layout and expanded revenue sources. Its main products include vehicle information intelligent terminal, asset management information intelligent terminal, personal safety intelligent terminal and animal traceability management products. The company focused on improving its technical strength and maintaining a high proportion of R & D investment. In 2021, R & D expenses increased by nearly 50% year-on-year, accounting for about 10.90% of revenue. Among them, R & D expenses in Q4 were about 36.21 million yuan in a single quarter, an increase of 49.35% month on month. During the reporting period, the company carried out technical reserves in five areas: vehicle management, shared travel, asset management, animal traceability management and industrial router, completed the research and development of LTE CAT1 and 4G / 3G / 2G fully compatible chip on board, and expanded the research and development of gl530mg and LTE cat M1 applied to cold chain logistics, warehouse management, freight trucks and high-value static asset monitoring, The multi-functional LCD data collector of animal traceability products supports communication technologies such as GPS, ble, BT 3.0 and WiFi, and the development of 4G industrial route Lite version and multi-functional version. In the future, intelligent electric bicycle network equipment will be launched to provide technical support for business development.
M2M has a broad market and sharing economy to improve the intelligent demand of electric two wheeled vehicles. According to GSMA data, 4G has become the mainstream mobile communication technology, accounting for 52% of the total number of connections, which is expected to increase to 60% in 2023. Driven by 5g, the extended application of M2M technology continues to expand, bringing opportunities for M2M terminal product manufacturers. It is expected that the number of Internet of things connections will reach 25 billion in 2025, the global Internet of things market capacity will increase to $1.1 trillion, and the market scale CAGR will reach 21.4% from 2019 to 2025, Among them, the M2M connection market revenue reached 56.2 billion US dollars. Sharing economy is one of the emerging application scenarios of M2M. In China, electric two wheeled vehicles are widely used by virtue of the advantages of economic price, environmental protection and low carbon. The implementation of the new national standard gives rise to the replacement demand of the industry stock. At present, the number of electric vehicles in China has exceeded 350 million. It is expected that the replacement demand of the new national standard will reach a peak in 2022-2024 and exceed 500 million in the future, The market scale exceeds 100 billion. The intelligent electric two wheeled vehicle has the functions of vehicle, vehicle control and data intelligence, which can solve the user pain points such as vehicle condition monitoring, driving safety and anti-theft endurance. With the increase of the intelligent demand of young consumer groups and the demand of shared travel platform for managing vehicles, collecting data, optimizing delivery and reducing operation and maintenance costs, as well as the maturity of 4G, Internet of things, mobile Internet and other basic technologies, The proportion of intelligent electric two wheeled vehicles is expected to increase. Overseas, the proportion of intelligent electric skateboard in the micro travel stock market has gradually increased, and has become the main short-distance travel tool for European and American consumers. According to the data of Press & strategic intelligence, the overall global market scale will increase from US $140 million to US $4.09 billion from 2018 to 2025, and CAGR is about 40%. At present, the shared electric skateboard has been combined with artificial intelligence With the combination of big data and other technologies, the trend of intelligence is significant. The expansion of the intelligent scale of electric two wheeled vehicles will drive the growth of the demand for corresponding intelligent modules.
Orders for shared travel products broke out, and product application expansion provided performance increment. The company's on-board information intelligent terminal products can be applied to fleet management, intelligent logistics, UBI, intelligent transportation, automobile security, sharing economy and other fields. Some shared series products are used to share the central control unit in scooters. At present, cooperation has been reached with limebike and other well-known foreign manufacturers. The revenue of 21h1 electric scooter and bicycle business is nearly 100 million yuan, with a year-on-year increase of more than 400%. According to the announcement, the company and Zhejiang Jinbang sports equipment Co., Ltd. have signed a number of purchase orders for 12 consecutive months, with a cumulative amount of 277 million yuan. Zhejiang Jinbang's main products are electric leisure vehicles, electric scooters, electric bicycles, etc. the company is expected to continue to expand the field of sharing economy. The company actively developed the application of RFID technology, cooperated with Lide products in the business of animal traceability management products, launched an e-commerce platform and successfully launched it in Australia, Canada and New Zealand, effectively expanded the market, achieved a revenue of more than 14 million yuan in the first half of the year, made a breakthrough in the intelligent terminal of asset management information, and won the order of Internet of things tag reader of CCB in 21h1, Reach strategic cooperation with sigfox to promote business development. During the reporting period, the company completed fixed growth, raised about 336 million yuan for 4G and 5g communication technology industrialization projects, animal traceability product information industry upgrading projects and industrial wireless router projects, further expanded vehicle insurance applications, automotive finance, industrial Internet of things and other emerging end applications, enriched the company's product line, and is expected to provide performance increment in the future.
Investment advice: Queclink Wireless Solutions Co.Ltd(300590) is a leading provider of wireless Internet of things equipment and solutions in China. With the recovery of overseas demand after the epidemic, the company's efforts to explore the Chinese market and the expansion of M2M and RFID technology applications, the company's performance is expected to usher in sustained growth. We adjusted the net profit of the company from 2021 to 2023 to 175 million / 252 million / 325 million respectively (the original forecast value was 195 million / 252 million / 325 million), and EPS to 0.57 yuan / 0.83 yuan / 1.07 yuan respectively (the original forecast value was 0.64 yuan / 0.83 yuan / 1.07 yuan), maintaining the "buy" rating.
Risk warning: the development of the Internet of things is less than the expected risk; Developing new customers is less than expected risk; Risk of ineffective new business expansion; Upstream raw material price rise and supply shortage risk; Risk of recurrent outbreaks; The public materials used in the research report may have the risk of information lag or untimely update.
