\u3000\u30 Beijing Telesound Electronics Co.Ltd(003004) 96 Thunder Software Technology Co.Ltd(300496) )
Core view
Event: on the evening of March 3, 2022, the company disclosed the annual report of 2021. The company achieved operating revenue of 4.127 billion (+ 57.04%), net profit attributable to parent company of 647 million (+ 45.96%) and net profit deducted of 576 million (+ 57.29%).
The company takes the operating system as its core competitiveness, and the three businesses continue to grow at a high rate. In terms of intelligent software business, relying on its leading position in operating system platform products and technologies, the company has increased its cooperation with global end customers and chip manufacturers. In 2021, the company's intelligent software business realized a revenue of 1.631 billion, a year-on-year increase of 40.33%, exceeding market expectations; In terms of intelligent connected vehicle business, the company has core advantages in the field of on-board OS and can provide customers with a variety of products and solutions, including intelligent cockpit and automatic driving. In 2021, the company's intelligent connected vehicle business achieved a revenue of 1.224 billion, a year-on-year increase of 58.91%; In terms of intelligent Internet of things business, the company has built an integrated and full scenario solution of end edge cloud distributed OS with iotos as the core. Benefiting from the continuous expansion of the company's IOT product categories and the rapid growth of downstream demand, the company's intelligent Internet connected vehicle business realized a revenue of 1.272 billion in 2021, a year-on-year increase of 82.87%.
Factors such as rising raw material prices and exchange rate fluctuations dragged down the gross profit margin, and the overall cost rate remained stable. The company's comprehensive gross profit margin in 2021 was 39.40%, down 4.82pct from last year. In addition to the structural impact of the rapid growth of intelligent Internet of things business with low gross profit margin, we believe that the following factors affect the gross profit margin performance: 1 the rise in raw material prices caused by factors such as tight chip supply chain affects the gross profit margin level. In 2021, the procurement cost of the company's hardware products and materials reached 966 million (+ 138.68%), and the proportion in the operating cost also increased from 27.61% in 2020 to 38.62%; 2> Most of the company's overseas customers of IOT business, and the fluctuation of foreign exchange rates such as US dollar and Japanese yen has an adverse impact on the gross profit margin of IOT business. The gross profit margin of the company's commodity sales business in 2021 was 14.48%, down 8.43pct from 2020. The company's sales expense rate is 3.12%, the management expense rate is 9.85%, and the R & D expense rate is 12.43%, which is slightly lower than the level in 2020, and the scale effect of the company is beginning to show.
The company issued the fixed growth plan for 2022, focusing on the four R & D directions to enhance the company's long-term competitiveness. Under the trend of "cloud edge end" integration of software defined automobile and Internet of things and expanding reality into the fast lane of development, the intelligent industry is changing rapidly. The company needs to continue to explore potential markets and improve product capabilities, so as to further consolidate the company's leading position in intelligent connected automobile business and intelligent Internet of things business. In this context, the company issued the fixed growth plan for 2022, and plans to raise no more than 3.1 billion yuan for R & D projects of vehicle operating system, R & D and industrialization projects of edge computing station, R & D and industrialization projects of extended reality (XR), R & D projects of distributed computing network technology and supplementary working capital. We believe that the fixed increase plan shows the company's determination to increase investment in intelligent connected vehicles and intelligent Internet of things, and helps to support the long-term development of the two businesses.
Profit forecast and investment suggestions
According to the annual report of the company in 2021, we believe that the three major businesses of the company will still maintain a high-speed growth trend. Due to the company's active expansion of the smart car market and the structural changes of the business, the gross profit margin will decrease slightly. It is predicted that the earnings per share of the company in 20222024 will be 2.08, 2.92 and 4.11 yuan (the original forecast of 22-23 years is 2.23 and 3.14 yuan, and the revenue, expenses and gross profit margin will be adjusted), With reference to the price earnings ratio of 58 times in 2022 given by comparable companies, the corresponding target price is 120.82 yuan, maintaining the buy rating.
Risk tips
The implementation of intelligent automobile is less than expected, the business expansion of intelligent Internet of things is less than expected, and the shortage of chips continues.
