\u3000\u30 Beijing Telesound Electronics Co.Ltd(003004) 96 Thunder Software Technology Co.Ltd(300496) )
Key investment points
Event: the company released its annual report for 2021, realizing an operating revenue of more than 4.13 billion yuan, a year-on-year increase of 57.0%; The net profit attributable to the parent company was 650 million yuan, a year-on-year increase of 46.0%; The net profit after non deduction was 580 million yuan, a year-on-year increase of 57.3%. The three major businesses of the company continued to grow rapidly, and the performance was in line with previous expectations. At the same time, the company issued a fixed increase plan, which plans to raise no more than 3.1 billion yuan to invest in the R & D of vehicle operating system, edge computing station, XR and other projects, so as to further strengthen its core competitiveness.
The performance reached a new high in the fourth quarter, and the hardware cost affected the gross profit margin. A large number of orders of the company have been centrally delivered and collected in the fourth quarter, and the revenue and profit have accelerated quarter by quarter. Q4 achieved a revenue of 1.45 billion yuan in 2021, an increase of 73.0% year-on-year and 48.8% month on month; The net profit attributable to the parent company was 200 million yuan, an increase of 30.0% year-on-year and 13.7% month on month. Throughout the year, the company’s gross profit margin was 39.4%, down 4.82pp year-on-year, mainly due to the increase in the proportion of the company’s Internet of things business and the sharp increase in the procurement cost of hardware products and materials such as chips. Despite this factor, the company has achieved remarkable results in fee control management. Under the background of high salary recruitment of a large number of technical talents such as automatic driving, the profit still achieved high growth.
The troika is driven at high speed, and various businesses blossom at many points. The businesses of the three sectors have not yet shown fatigue under the condition of high growth in 2020, and have made great breakthroughs. 1) Intelligent software: the operating revenue was 1.63 billion yuan, an increase of 40.3% over the same period last year, exceeding market expectations. During the reporting period, the 5g replacement boom continued, and the cooperation between the company and its head customers deepened. Among them, the revenue from terminal manufacturers was 1.05 billion yuan, an increase of 47.9% over the same period last year. 2) Smart car: the operating revenue was 1.22 billion yuan, a year-on-year increase of 58.9%. During this period, the company successively released kanzione, an integrated vehicle HMI tool chain, and a new solution based on Qualcomm sa8295 hardware platform to continue to consolidate its advantages in the field of intelligent cockpit; At the same time, the company also made a major breakthrough in intelligent driving, released smartparking, a product integrating low-speed driving and cockpit, and announced to enter the market of high-end driving and future vehicle computing platform, so as to build an open platform and ecosystem for automatic driving covering intelligent driving domain controller platform, underlying software, operating system, middleware, software integration and testing, Further raise the growth ceiling. 3) Intelligent Internet of things: the operating revenue was 1.27 billion yuan, a year-on-year increase of 82.9%. In the field of consumer Internet of things, the company continues to expand product shipments and customer expansion in Siasun Robot&Automation Co.Ltd(300024) , smart cameras, XR, handheld terminals, etc; In the field of industrial Internet of things, the company vigorously develops edge computing products and further deepens the strategic cooperation with Amazon cloud. The PAAS platform applied in the field of intelligent manufacturing has won the favor of head customers, and the cloud business has shown explosive growth. The company’s Internet of things business has gradually moved from “terminal” to “end edge cloud”, showing a multi-point flowering situation.
“Technology + ecology” creates platform advantages to support rapid growth in the future. In 2021, the company has built an R & D technical team with more than 10000 people. Compared with the expansion of 52.2% in 2020, the R & D expenditure exceeded 800 million yuan, an increase of 72% year-on-year. It is worth noting that the company’s advanced layout in the field of intelligent vehicles and the Internet of things has been transformed into platform capacity. In 2021, the company achieved 454 new technological achievements (including patents, trademarks, computer software copyrights, etc.), an increase of 61% year-on-year, and the capitalization rate of R & D investment reached 37.9%, an increase of 21.8pp year-on-year. At the same time, the advantages of the company’s ecological card based on OS technology have gradually become prominent. During the reporting period, the strategic cooperation with Huawei, Xiaomi, SAIC, great wall and other head customers has been deepened. On February 26, 2022, the company announced the establishment of a joint venture with JAC group to carry out research and development with vehicle software, car cloud platform and automatic driving as the core. The company’s technical ability has been recognized by head customers again, Business development momentum is good.
The fixed increase plan of more than 3 billion was released, and the whole vehicle OS + edge calculation was firmly laid out. The company has issued a fixed growth plan for 2022, which plans to issue no more than 85011576 shares to specific objects and raise no more than 3.1 billion yuan, of which 650 million yuan is planned to be invested in the R & D project of vehicle operating system, about 1 billion yuan in the R & D and industrialization project of edge computing station, and 360 million yuan in the R & D and industrialization project of extended reality (XR), About 190 million yuan was invested in the R & D project of distributed computing network technology, and 900 million yuan was used to supplement working capital. The fixed growth plan will add weight to the company’s software defined automotive and edge computing fields, further strengthen the company’s strategic focus and consolidate its leading position in technology, which is expected to support high growth in the future.
Profit forecast and investment suggestions. Regardless of the impact of fixed growth, it is expected that the compound growth rate of the company’s net profit attributable to the parent company will reach 38.9% from 2022 to 2024. Based on the core OS technology, the company has established the reusable platform ability and firmly occupied the card positions of the three high boom tracks. The subsequent catalytic factors are sufficient, the high growth rate is expected to continue, and the “buy” rating is maintained.
Risk warning: the development of intelligent driving technology is not as expected; The penetration rate of products such as Internet of things and intelligent cockpit has not improved as expected; Deterioration of international trade situation; Exchange rate fluctuation risk.
