\u3000\u30003 Midea Group Co.Ltd(000333) 00033)
Key investment points
Event: the company released an annual report. In 2021, the revenue was 3.51 billion yuan, a year-on-year increase of 23.4%, and the net profit attributable to the parent company was 1.91 billion yuan, a year-on-year increase of 10.9%, equivalent to 86% of our previous forecast, which was lower than expected; Weighted average roe33 59%, year-on-year -4.78pct. [the growth rate of net profit was lower than that of revenue, mainly due to the increase of taxes] the R & D expense rate was 23.6%, year-on-year + 3.0pct, mainly due to the increase of R & D investment and R & D personnel salary; The income tax rate was 8.5%, with a year-on-year increase of + 3.5%. The main factor was the reduction of income tax of Zhifu software (100% holding, net profit of 580 million yuan, profit accounting for 30.4%). [segment business performance] the revenue of value-added telecommunications, online market trading system, advertising and internet promotion and consignment business was 1.618 billion yuan, 296 million yuan, 1.284 billion yuan and 312 million yuan respectively, with a year-on-year increase of + 25.9%, + 22.6%, + 53.6% and – 35.3% respectively. In the consignment business, the fund consignment business was + 72.9% year-on-year, and other consignment sales (insurance products, gold, etc.) decreased significantly due to the company’s strategic adjustment, The company’s main businesses grew well.
Contract liabilities continued to reach a new high and accelerated the construction of a pan financial service platform: at the end of 2021, contract liabilities reached 1.044 billion yuan, a year-on-year increase of + 10.1%, providing support for the continuous growth of the company’s revenue in the future; The company uses the advantages of data resources to promote the coordinated development of stocks, funds, futures and other businesses, with rich realization licenses. At the end of 2021, “love fund” was connected to 171 securities and fund companies and 14322 funds were sold on a commission basis.
User activity is ahead of peers, and the price of single products rises slightly: according to the statistics of China Securities Registration Corporation, the total number of investors at the end of 2021 was 197 million, with a year-on-year increase of + 11.0%, and the retail market still grows rapidly. At the end of 2021, the company had 590 million registered users, a year-on-year increase of + 9.0%, and 14.45 million daily users, a year-on-year increase of + 1.9%, still ranking first in financial apps. The unit prices of mobile phone super level 2 and magic wave were increased by 14 yuan / year, 74 yuan / year to 120 yuan / year and 1072 yuan / year respectively.
Investment suggestion: we believe that the company has advantages in terms of user scale, product line richness and data resources. It is worth looking forward to the increase of the penetration rate of main products & the increase of unit price. We predict that the profits from 2022 to 2024 will be 2.191 billion yuan, 2.514 billion yuan and 2.856 billion yuan respectively, and the roe will be about 30%. Company 2022epe26 5x, which is basically the same as when the market was cold in 2018. The negative expectations have been fully reflected and the “Buy-A” rating has been maintained.
Risk tips: the activity of the capital market has decreased significantly, the market demand has declined, and the R & D input and output are lower than expected.
