\u3000\u3000 Queclink Wireless Solutions Co.Ltd(300590) (300590)
Event: the company issued a performance forecast. The net profit attributable to the listed company in 21 years was 155-183 million yuan, with a year-on-year increase of 71.33% - 102.28%; Deduct non net profit of 140 million-167 million yuan, with a year-on-year increase of 135.28% - 180.66%.
Our comments are as follows:
Market expansion, multi field extension + continuous R & D investment, and the performance has achieved rapid growth
In 2021, the company continued to respond to the economic strategic call of "a new development pattern with China's big cycle as the main body and China's international double cycle promoting each other", actively carried out market expansion and application field extension, covering a variety of application scenarios, including Internet of vehicles, asset tracking and security, smart industry, smart pasture, two wheeled vehicles, shared travel and so on. In a single quarter, the net profit attributable to the parent company in 21q4 was about 43.2 million-71.2 million yuan, with a median of 57.2 million yuan, a year-on-year increase of 102.84%. In addition, in 2021, the company's R & D expenses increased by nearly 50% year-on-year. At the same time, the order scale of shared travel products increased rapidly, and the market of ordinary vehicle series products was further developed. The company's total sales revenue increased by about 95% year-on-year, realizing a total sales revenue of more than 900 million yuan.
Continue to make layout outside China, build reputation, tap the market and accumulate customer resources
1) in the Chinese market, in February 2021, the company successfully won the bidding for the procurement project of China Construction Bank Corporation(601939) Internet of things tag reader (fixed and handheld), which also marks that the company has gradually established its own brand awareness in the Chinese market. In the first half of 2021, the Chinese market focused on the market development of micro travel transportation (including electric bicycles and scooters).
2) in the international market, since the cooperation between the company and Lide products, the company has continuously absorbed its process and localized it. It has not only opened up markets including Europe, South America, North America and Africa, but also won the recognition of users by realizing product lightweight, material localization, innovating production process, improving test methods and improving product stability. For animal tracking products, the company launched an e-commerce platform. Customers can place orders online, and the system automatically transfers the orders to the factory for production, which improves the whole business cycle and effectively reduces the impact of the epidemic on business development. The e-commerce platform has been launched in Australia, Canada and New Zealand. At present, there are about 2000 registered dealers and distributors. The launch of the e-commerce platform will effectively promote the market development of animal traceability products, break the traditional sales mode of animal traceability products, and lay a foundation for increasing the company's market share. The company will continue to give full play to Lide's brand advantages and market accumulation. At the same time, relying on the sales channels established by the company in the world, the company will continue to explore the global animal traceability management market.
The industry has broad prospects, continues global layout and can grow in the future
The Internet of things industry is in a vigorous development trend, and the application scenarios are constantly expanded and enriched. According to GSMA statistics and prediction, 4G technology has become the world's mainstream mobile communication technology in 2019, with a total number of connections of more than 4 billion, accounting for 52%. It is expected that the number of 4G connections will continue to grow, accounting for 60% by 2023. At the same time, 5g technology will develop rapidly, and the Internet of things connection will become an important part of the 5g era. It is expected that the number of Internet of things connections will reach 25 billion and the income of Internet of things will reach US $1.1 trillion in 2025. The global Internet of things market capacity in 2019 will be 343 billion US dollars, and will grow to 1.1 trillion US dollars by 2025, of which the revenue of M2M connection market will reach 56.2 billion US dollars. The company Wuxi Online Offline Communication Information Technology Co.Ltd(300959) is combined to strengthen the corporate brand image. At the same time, through active layout, the global market penetration is expected to increase + multi product expansion, and the company has more room to improve its market share in the future.
Profit forecast and investment suggestion: with the normalization of the epidemic situation, the company's market strategy is adjusted to the combination of Wuxi Online Offline Communication Information Technology Co.Ltd(300959) to strengthen corporate brand publicity. In the medium and long term, with the continuous and rapid growth of the number of Internet of things devices, the company is expected to benefit in the long term. We are optimistic about the long-term growth of the company. It is estimated that the net profit of the company in 21-23 years will be 170 million, 300 million and 400 million yuan, corresponding to 28x PE in 22 years, maintaining the "overweight" rating.
Risk tips: international trade friction and market fluctuation risk, greater risk affected by covid-19 epidemic, less than expected new business expansion, exchange rate fluctuation risk, less than expected order delivery, tight supply of upstream raw materials, preliminary calculation of performance forecast for the company, and the actual situation is subject to the annual report, etc
