\u3000\u30003 Midea Group Co.Ltd(000333) 00033)
The company disclosed the annual report of 2021 on March 1. In 2021, the company achieved a revenue of 3.510 billion yuan (+ 23.43%), a net profit of 1.911 billion yuan (+ 10.86%) attributable to the shareholders of the listed company, a net profit of 1.886 billion yuan (+ 13.78%) attributable to the parent company after deduction, and a basic earnings per share of 3.56 yuan (+ 10.90%).
High growth was achieved in value-added telecommunications services, software sales and maintenance, advertising and Internet business promotion services. In 2021, the company’s value-added telecom service revenue was 1.618 billion yuan (+ 25.95%), software sales and maintenance revenue was 296 million yuan (+ 22.58%), advertising and Internet business promotion service revenue was 1.284 billion yuan (+ 53.64%), accounting for 46.11%, 8.43% and 36.58% of the company’s total revenue respectively, mainly due to the growth of user groups and the increase of user activity. In terms of institutional customers, the data and services provided by the company are scarce, and the stickiness of institutional customers is high. At present, it has covered more than 90% of China’s securities companies and a large number of institutional customers such as public offering and private placement. In terms of retail customers, as of December 31, 2021, Hithink Royalflush Information Network Co.Ltd(300033) financial services network has registered about 590.39 million users (+ 9.00%); The average number of daily users of Hithink Royalflush Information Network Co.Ltd(300033) online market free client is about 14.45 million (+ 1.90%), and the number of weekly active users is about 19.16 million (+ 4.02%).
The fund consignment business continued to develop. In 2021, the company achieved 312 million yuan (- 35.30%) in other business income such as fund sales and other transaction fees, mainly due to the adjustment of the company’s business strategy, but the company’s fund consignment business income increased by 72.94% year-on-year. In terms of business scale, the sales and holding scale of the company’s public funds has increased steadily. According to the data released by China Foundation Association, the company’s holding volume of Q1-Q4 public funds in 2021 ranked between 31-35 in the industry, and the holding scale of Q4 stock + mixed public funds and non money market public funds increased by 27.94% and 36.55% respectively compared with Q1. The company mainly carries out fund consignment business through the “love fund” fund investment platform. As of December 31, 2021, the “love fund” platform has access to 171 fund companies and securities companies, an increase of 15 over the same period last year, and 14322 fund products and asset management products have been sold on a commission basis, with a year-on-year increase of 29.46%.
Strengthen R & D investment and create technical advantages. In 2021, the company invested 828 million yuan (+ 41.55%), accounting for 23.60% of the operating revenue. The funds raised by the company are mainly invested in the construction of database and data processing base, and financial services are expected to be further strengthened. In addition, the company increased the construction of Hithink Royalflush Information Network Co.Ltd(300033) AI open platform to provide artificial intelligence solutions for banking, insurance and securities industries. At present, most financial institutions are still lack of science and technology empowerment. It is expected that this business is expected to become the core competitiveness of the company. At the same time, the company focuses on the construction of marketing service network, and the profitability of advertising and Internet business promotion services is expected to be further improved.
Investment suggestion: the company has high technical and financial data resource barriers, and actively develops AI and database construction, which is expected to enhance the company’s financial service capabilities such as data processing and intelligent investment advisory services. At the same time, the company’s business has benefited from the transfer of residents’ wealth for a long time. On the one hand, investors’ demand for financial information has increased, and value-added telecommunications services, software sales and maintenance, advertising and Internet business promotion services have benefited; On the other hand, the company focuses on the development of fund consignment business, superimposing the advantages of convenient online access and deep cultivation of long tail customers. The scale of fund consignment is expected to further grow in the future. In combination with the current situation, the company’s initial purchase price of “202421 yuan” and “202421 yuan” should be rated as 16.48 times of the company’s initial net assets, which should be 16.48 times of the company’s “202421 yuan” and “202421 yuan” respectively.
Risk tip: the market boom is lower than expected, and the industry supervision is strengthened
