\u3000\u3 Guocheng Mining Co.Ltd(000688) 100 Willfar Information Technology Co.Ltd(688100) )
Core view
The annual performance is basically in line with expectations. In 2021, the annual operating revenue was 1.826 billion yuan, with a year-on-year increase of 26.03%; The net profit attributable to the parent company was 341 million yuan, a year-on-year increase of 24.02%; Net profit deducted from non parent company was 313 million yuan, with a year-on-year increase of 23.70%. In the fourth quarter of 2021, the operating revenue was 526 million yuan, an increase of 30.11% year-on-year and 17.20% month on month; The net profit attributable to the parent company was 93 million yuan, an increase of 40.28% year-on-year and 15.07% month on month; Net profit deducted from non parent company was 76 million yuan, with a year-on-year increase of 27.69% and a month on month decrease of 2.50%. The company's revenue increased steadily in 2021, mainly due to the growth of energy Internet system solutions and the development of international market.
The whole series of business continues to grow, driven by China's international business. From the perspective of business, the revenue of perception layer / network layer / application layer was 578 / 1131 / 109 million yuan respectively, with a year-on-year increase of 63.68% / 13.93% / 14.21% and 32% / 62% / 6% respectively. From a regional perspective, China's business revenue in 2021 was 1.596 billion yuan, a year-on-year increase of 15.69%; The international business revenue was 223 million yuan, a year-on-year increase of 257.48%. The company has one belt, one road, and the other is the electric power and water gas industry.
The market share of digital power grid is firmly in the forefront, strengthening research and development and maintaining a leading edge. In 2021, the company's HPLC module was shortlisted for 23 provincial power companies, with a total bid winning amount of nearly 330 million yuan. In order to meet the goal of "double carbon" and the construction of new power system, the company increased its R & D efforts. In 2021, the R & D investment was 177 million yuan, a year-on-year increase of 36.51%; Accounting for 9.69% of revenue, with a year-on-year increase of 0.74 percentage points; 65 new patents (including 13 invention patents) and 78 software copyrights were added.
Strategic cooperation with Tencent to build a digital intelligence city. In May 2021, the company's subsidiary Weiming energy introduced Tencent venture capital, which acquired 6.25% equity of the former. The company has deeply integrated with Tencent products in the fields of smart energy, smart fire fighting, smart water and smart electricity, launched a number of "carbon neutralization" solutions, and used Tencent's Internet Ecological channels to promote new infrastructure projects of urban Internet of things and jointly build an ecosystem.
Profit forecast and investment suggestions
In combination with the company's operation in 2021, we raised the revenue of communication gateway and communication module, reduced the revenue of sensing terminal and the gross profit margin of electric monitoring terminal and communication gateway, and adjusted the company's earnings per share to 0.99 yuan, 1.31 yuan and 1.68 yuan in 22-24 years (the original earnings per share in 22-23 years were 1.11 yuan and 1.41 yuan). Referring to comparable companies, we believe that the current reasonable valuation level of the company is 34 times the P / E ratio in 2022, and the corresponding target price is 33.66 yuan, maintaining the buy rating.
Risk tips
Macroeconomic risks; Supply chain risk; Customer concentration risk; Rising risk of raw materials; Overseas epidemic risk.
