\u3000\u30003 Midea Group Co.Ltd(000333) 00033)
Event:
The company issued the 2021 annual report after the closing on February 28, 2022.
Comments:
The growth of operating revenue was in line with expectations, with a year-on-year increase of 23.43%
In 2021, the company achieved an operating revenue of 3.510 billion yuan, a year-on-year increase of 23.43%; The net profit deducted from non parent company was 1.886 billion yuan, with a year-on-year increase of 13.78%; Net operating cash flow was 2.128 billion yuan, a year-on-year increase of 2.99%. In terms of products, the revenue of value-added telecom services was 1.618 billion yuan, a year-on-year increase of 25.95%; The revenue from software sales and maintenance was 296 million yuan, a year-on-year increase of 22.58%; Advertising and Internet business 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 income from other businesses such as fund sales and other transaction fees was 312 million yuan, a year-on-year decrease of 35.30%, mainly due to the adjustment of the company’s business strategy and the reduction of commission fees for other businesses.
Actively expand the application scenarios of artificial intelligence and strengthen the construction of Internet pan financial intelligence service platform
In terms of expenses, the company’s sales, management and R & D expenses in 2021 were 337 million yuan, 146 million yuan and 828 million yuan respectively, with a year-on-year growth rate of 17.09%, 24.89% and 41.55% respectively. The company continues to adhere to independent research and development, increase research and development investment in key technology applications such as machine learning, natural language understanding, speech recognition and human-computer interaction, and further improve the technical advantages of the company. By the end of 2021, the number of R & D personnel had increased by 296115%. 1) Actively expand the application of artificial intelligence: Hithink Royalflush Information Network Co.Ltd(300033) ai products and services are actively expanding to life, medical treatment, education and other fields; The 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; 2) Strengthen the construction of Internet pan financial intelligent service platform: 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.
Continue to develop institutional and individual investor customers, and the number of Hithink Royalflush Information Network Co.Ltd(300033) registered users has increased steadily
In terms of institutional customers, the company’s products and services have covered more than 90% of China’s securities companies, as well as a large number of institutional customers such as public fund companies, private fund companies, banks, insurance companies, governments, scientific research institutes and listed companies. In terms of individual users, as of December 31, 2021, Hithink Royalflush Information Network Co.Ltd(300033) financial services network has registered about 590.39 million users; The average number of free clients using Hithink Royalflush Information Network Co.Ltd(300033) online quotes every day is about 14.45 million, and the number of active users per week is about 19.16 million. A wide variety of institutional investors and large and active individual investors are conducive to the company building an internet financial information service ecosystem and promoting the introduction, upgrading and upgrading of the company’s products and services.
Profit forecast and investment suggestions
The company is a leading Internet financial information service provider in China. Its products and services cover all levels of the industrial chain. With the rapid development of China’s capital market, the company has a broad growth space in the future. It is predicted that the operating revenue of the company from 2022 to 2024 will be 4.326 billion yuan, 5.292 billion yuan and 6.345 billion yuan, the net profit attributable to the parent company will be 2.343 billion yuan, 2.908 billion yuan and 3.545 billion yuan, the EPS will be 4.36, 5.41 and 6.59 yuan / share, and the PE will be 24.81, 19.99 and 16.40 times. In the past three years, the company’s PE has mainly operated between 30-90 times. Considering the sustainable and healthy development of China’s capital market, the future growth is relatively certain. The company is given a target PE of 37 times in 2022, with a corresponding target price of 161.32 yuan. Maintain the “buy” rating.
Risk tips
The capital market is lower than expected; Changes in industry regulatory policies; The growth of paying users is lower than expected; The development of artificial intelligence business is less than expected; Intensified industry competition, etc.
