\u3000\u30 Beijing Telesound Electronics Co.Ltd(003004) 96 Thunder Software Technology Co.Ltd(300496) )
Event: on March 3, the company disclosed the annual report of 2021. The operating revenue was 4.127 billion yuan, a year-on-year increase of 57.04%, the net profit attributable to the parent was 647 million yuan, a year-on-year increase of 45.96%, and the net profit not attributable to the parent was 576 million yuan, a year-on-year increase of 57.29%. In the fourth quarter, the operating revenue was 1.455 billion yuan, a year-on-year increase of 73.03%, the net profit attributable to the parent was 197 million yuan, a year-on-year increase of 30.00%, and the net profit not attributable to the parent was 170 million yuan, a year-on-year increase of 71.31%.
Event 2: the company issued a fixed increase plan and proposed to raise 3.1 billion yuan.
Comments:
Fixed growth: the business territory is moving towards the b-end Internet of things. Combined with its own capital of 1.6 billion yuan, it is used for R & D projects of vehicle operating system (1 billion yuan), R & D and industrialization projects of edge computing station (1.79 billion yuan), R & D and industrialization projects of extended reality (XR) (760 million yuan), R & D projects of distributed computing network technology (290 million yuan) and supplementary working capital (900 million yuan). We believe that this fixed increase can further enhance the company’s R & D strength in the fields of automotive operating system, cloud computing and AR / VR / MR, especially the edge computing and distributed computing power projects, marking the company’s vigorous expansion to the field of industrial IOT.
Gross profit is under short-term pressure, and high R & D investment continues to strengthen technical barriers. The gross profit margin of the Internet of things business increased by 39.4% over the same period last year, accounting for 39.4% of the company’s gross profit margin, which was lower than that of 2024.4% in the same period last year. The company continued to maintain high R & D investment. The amount of R & D investment reached 826 million yuan, with a year-on-year increase of 72.08%, accounting for 20.02% of operating revenue and a year-on-year increase of 1.75%. R & D personnel also increased rapidly, from 6300 to 10350, with a year-on-year increase of 52.21%. We believe that high R & D investment will help further consolidate the company’s advantages in mobile phones, automobiles and the Internet of things, Lay the foundation for the long-term growth of performance.
The financial situation is in line with the current situation of the company’s rapid development. In 2021, the company’s accounts receivable amounted to 1.293 billion yuan, with a year-on-year increase of 61.83%, accounting for 31.3% of operating revenue, with a year-on-year increase of 0.9%, mainly due to business development. The company’s core customers have strong economic strength and low risk of accounts receivable; The inventory was 715 million yuan, a year-on-year increase of 78.75%, mainly due to the rapid development of Internet of things business, abundant orders and the company’s increase in raw material reserves; The net cash flow from operating activities was 139 million yuan, a year-on-year decrease of 59.25%, mainly due to the increase in goods preparation for the high boom in the downstream of the Internet of things.
Intelligent software: benefiting from 5g application innovation, the company’s end customer revenue has increased rapidly. In 2021, the revenue of intelligent software was 1.631 billion yuan, a year-on-year increase of 40.33%, of which the revenue of terminal manufacturers was 1.054 billion yuan, a year-on-year increase of 47.88%, and the revenue of chip manufacturers was 369 million yuan, a year-on-year increase of 4.83%, which exceeded our expectations. According to the data of China Academy of communications and communications, the overall shipment volume of China’s mobile phone market in 2021 was 351 million, with a year-on-year increase of 13.9%, including 266 million 5g mobile phones, with a year-on-year increase of 63.5%, accounting for 75.9% of the mobile phone shipment volume in the same period. We believe that the replacement wave brought by 5g update and replacement has driven the growth of shipments in the mobile phone market, while 5g technology can significantly improve the value of mobile phone software and drive the increase of stand-alone value. With the leading technical advantages and long-term cooperative relations with core manufacturers such as Samsung, oppo, vivo, Xiaomi and Huawei, the company’s mobile phone business is expected to continue to achieve good growth.
Smart car: royalty’s large-scale + 8295 pre research + ride’s landing. The company’s automobile business has been growing strongly in 22 years. In 2021, the revenue of intelligent vehicles was 1.224 billion yuan, with a year-on-year increase of 58.91%, of which the revenue of software development and technical services was 1.082 billion yuan, with a year-on-year increase of 72.87%, and the revenue of software licensing was 142 million yuan, with a year-on-year decrease of 1.71%. According to the China Automobile Association, in 2021, China’s automobile sales volume was 26.275 million, with a year-on-year increase of 3.8%, including 3.521 million new energy vehicles, with a year-on-year increase of 160%, and the market share increased to 13.4%. In 2022, China’s total automobile sales volume is expected to reach 27.5 million, with a year-on-year increase of about 5%, including 5 million new energy vehicles, with a year-on-year increase of 42%, and the market share is expected to exceed 18%. We believe that with the orderly promotion of new energy vehicles and automatic driving, the company’s intelligent vehicle business will continue to maintain high growth. The core highlights are 1) the steady progress of Qualcomm ride platform, and the gradual development and mass production of its cooperative great wall and general motors, driving the increase of the company’s automatic driving revenue; 2) The models equipped with Qualcomm 8155 cockpit platform will gradually drive the growth of the company’s royalty revenue, and the R & D of Qualcomm 8295 platform will drive the increase of the company’s NRE revenue.
Intelligent Internet of things: revenue continues to grow explosively, and the gross profit margin is under short-term pressure due to factors such as upstream price rise and innovation expansion. In 2021, the revenue of intelligent Internet of things was 1.272 billion yuan, a year-on-year increase of 82.87%, exceeding our expectations. The gross profit margin of commodity sales and other businesses corresponding to the company’s intelligent Internet of things was 14.5%, a decrease of 8.4% compared with the same period last year. We believe that it is mainly due to exchange rate fluctuations, the price rise caused by the shortage of upstream components, and the large investment in the early stage of expanding new products. In the future, with the decrease of exchange rate fluctuations, the supply of upstream components will resume The large-scale amortization of new products and low cost will drive the recovery of gross profit margin. We believe that in the era of Internet of things, the intelligent Internet of things has always been a high-quality track. Its downstream sweeping Siasun Robot&Automation Co.Ltd(300024) , AR / VR, intelligent camera, UAV and other core products continue to maintain a high profile. Qualcomm has significant advantages in the field of Internet of things chips. With its long-term and stable in-depth cooperation relationship, the company’s intelligent Internet of things business is expected to achieve high growth in line with the trend of the times.
Profit forecast and valuation rating. We believe that under the trend of interconnection of all things, the company has strong technical advantages. It connects the operating system, chip and terminal manufacturers, plays a unique role in the industrial chain, can adapt the operating system, chip and terminal equipment, and has obvious advantages. The performance has strong growth momentum in the short, medium and long term. It is estimated that the net profit attributable to the parent company in 22-24 years will be 9.17/12.52/1.677 billion yuan, with a corresponding valuation of 49 / 36 / 27 times. Maintain the “buy” rating.
Risk tips: 1 Intensified market competition; 2. The shortage of chips has intensified; 3. Technology research and development is less than expected.
