\u3000\u30003 Midea Group Co.Ltd(000333) 00033)
Event: on February 28, 2022, the company issued the annual report of 2021, realizing an operating revenue of 3.509 billion yuan, a year-on-year increase of 23.43%; The net profit attributable to shareholders of listed companies was 1.911 billion yuan, a year-on-year increase of 10.86%. Basically in line with market expectations.
The performance in 2021 is mainly affected by short-term factors, and the beta attribute of the great development of the capital market is expected to continue to be reflected. 1) China’s capital market continued to develop in 2021. According to wind data, by the end of 2021, the stock turnover of Shanghai Stock Exchange, Shenzhen Stock Exchange and Beijing stock exchange totaled 258.04 trillion yuan, a year-on-year increase of 24.76%. Over the same period, the company achieved an operating revenue of 3.509 billion yuan, an increase of 23.43% year-on-year, mainly due to the growth of user groups and the increase of customers’ demand for the company’s products. The company’s value-added telecommunications services, software sales and maintenance, advertising and Internet business promotion services increased year-on-year. 2) All businesses of the company benefited from the steady development of the general trend of the capital market, among which the fund consignment business achieved high growth. In terms of business, the revenue of value-added telecom services was 1.618 billion yuan, a year-on-year increase of 25.95%, which is expected to be mainly due to the active securities market and the increase in investors’ demand for financial information. Advertising and internet promotion services achieved a revenue of 1.284 billion yuan, a year-on-year increase of 53.64%, mainly due to the increase in user activity and the corresponding increase in advertising and promotion business. The revenue from software sales and maintenance was 296 million yuan, a year-on-year increase of 22.58%. The income from fund sales and other transaction fees was 312 million yuan, a year-on-year decrease of 35.30%, of which the income from fund consignment business increased by 72.94% year-on-year. As of December 31, 2021, the “love fund” platform has access to 171 fund companies and securities companies, and 14322 fund products and asset management products have been sold on a commission basis. However, due to the strategic adjustment of some businesses of the company, the commission fees of other businesses decreased. Short term factors have a certain impact on the annual performance.
Continuous investment in sales and R & D and continuous construction of technical barriers. 1) In 2021, the company realized a sales expense of 337 million yuan, a year-on-year increase of 17.09%; The management fee was 146 million yuan, with a year-on-year increase of 24.89%, mainly due to the expansion of the company’s scale and the increase of managers’ salary and office expenses. 2) During the reporting period, the company continued to adhere to independent R & D and improve the technical level. The R & D investment was 828 million yuan, with a year-on-year increase of 41.55%, mainly due to the increase in R & D investment and the increase in the salary of R & D personnel. During the reporting period, the company continued to increase investment in research and development of key technology applications such as machine learning, natural language understanding, speech recognition and human-computer interaction, so as to further improve the company’s technical advantages. As of December 31, 2021, the company has obtained 365 software copyrights and 137 non patented technologies independently developed, forming an obvious technological leading edge Hithink Royalflush Information Network Co.Ltd(300033) AI open platform can currently provide more than 40 AI products and services, which are applied to securities, funds, banking, insurance, operators, universities, enterprises, scientific research institutes, government departments and other industries. The company’s self-developed intelligent customer service Siasun Robot&Automation Co.Ltd(300024) has been applied to many large and medium-sized securities companies and fund companies, The company will continue to maintain the investment in artificial intelligence technology and explore new profit growth points in many fields.
Internet traffic with multiple beta attributes is the leader, benefiting from the general trend of capital market development. Beta1: during the peak period of capital market, the growth rate of revenue is twice that of trading volume. Beta2: the top financial attribute is flow, and AI can enhance the liquidity of flow. In recent years, the Mau of Hithink Royalflush Information Network Co.Ltd(300033) app is between 50 million and 70 million (iResearch data), and has always been the champion of mobile terminal online traffic. The company’s AI customer service system is gradually mature and is expected to significantly improve the efficiency of traffic conversion. Beta3: Based on AI and big data technology, invest in Siasun Robot&Automation Co.Ltd(300024) software products to strengthen the profit-making effect. The great development trend of the capital market has emerged. Software such as “financial master” and “wealth pioneer” enable customers to enjoy the profit-making effect in stock selection and timing, which is expected to benefit in the long term.
Maintain the “buy” rating. According to key assumptions and recent announcements, the profit forecast is adjusted. It is estimated that the operating revenue from 2022 to 2024 will be 4.5 billion yuan, 5.648 billion yuan and 6.971 billion yuan respectively, and the net profit attributable to the parent company from 2022 to 2024 will be 2.445 billion yuan, 3.135 billion yuan and 3.923 billion yuan respectively. Maintain the “buy” rating.
Risk warning: the income of core products does not meet expectations; Strengthening financial supervision; The capital market is depressed
