Queclink Wireless Solutions Co.Ltd(300590) (300590)
Event: Queclink Wireless Solutions Co.Ltd(300590) issued an announcement on signing major orders for daily operation, and the company signed a purchase order with Zhejiang Jinbang sports equipment Co., Ltd. on purchased products and related matters. As of the disclosure date of the announcement, the company and Zhejiang Jinbang had signed a number of purchase orders for 12 consecutive months, with the cumulative amount of orders reaching RMB 277342900 (including tax), and the cumulative amount of orders has exceeded 50% of the company’s audited main business income in 2020.
comment:
Major orders for electric two wheeled vehicles promote rapid growth: the company has signed multiple purchase orders with Zhejiang Jinbang sports equipment Co., Ltd. the main products of Zhejiang Jinbang are electric leisure vehicles, electric scooters, electric bicycles, etc. We believe that the company continues to expand downstream applications and is expected to continue to benefit from the intelligence of electric two wheeled vehicles, so as to drive the growth of the company’s performance.
The electric two wheeled vehicle tob and TOC blue ocean markets make concerted efforts: the tob end shares bicycles, and the TOC end Chinese customer No. 9, Mavericks and Yadi, and overseas customer bird drive the company’s future performance increment. According to tianyancha’s prediction, China’s annual output of two wheeled electric vehicles will remain above 40 million in the decade 2021-2031. Therefore, we predict that there is a large market space for potential intelligent modules, Queclink Wireless Solutions Co.Ltd(300590) is expected to benefit from the improvement of electric two wheeled vehicle penetration and the breakthrough of downstream customers.
Continuous investment in R & D and continuous expansion of industry boundaries: the company’s product line includes short travel, on-board information, asset management information, personal safety and animal traceability management products. The application fields of vehicle information business include fleet management, intelligent logistics, automobile finance, UBI, intelligent transportation, automobile security, sharing economy, etc; The application fields of asset management include asset equipment management, item tracking, container transportation, etc; The application fields of animal traceability management include government animal traceability supervision and animal husbandry management. In 2021, the company continued to invest in R & D around short trip intelligent terminal, on-board intelligent terminal, animal traceability management and other businesses. We believe that with the continuous investment in R & D, the company’s product boundary is expected to continue to expand. Looking forward to the future, the market of 100 billion yuan in short travel, vehicle, asset management and animal traceability will open a broad growth space for the company.
Profit forecast, valuation and rating: the company’s orders drive the continuous growth of revenue. We judge that the company benefits from the improvement of electric two wheeled vehicle penetration, the breakthrough of downstream customers and the continuous expansion of downstream market margin. We maintain the company’s forecast of net profit of RMB 171 million in 2021 and raise the company’s net profit of RMB 273 / 356 million in 2022-2023, an increase of 21.9% / 27.1% compared with the previous time. We are optimistic about the company’s long-term growth potential under the general trend of the Internet of things and the performance growth driven by product expansion in the field of the Internet of things, and maintain the “overweight” rating.
Risk warning: overseas market turbulence risk; Risk of gross margin decline.
