Skyworth Digital Co.Ltd(000810) annual review report: Gigabit is getting better, VR is about to break through, and automotive electronics is worth looking forward to

\u3000\u30 China High-Speed Railway Technology Co.Ltd(000008) 10 Skyworth Digital Co.Ltd(000810) )

Core conclusion

Event: the company issued the annual report of 2021. During the reporting period, the company achieved an operating revenue of 10.847 billion yuan, a year-on-year increase of 27.49%; The net profit attributable to the parent company was 422 million yuan, a year-on-year increase of 9.93%. At the same time, the company announced that it plans to buy back shares through centralized bidding. The total amount of funds to be repurchased shall not be less than 100 million yuan and not more than 200 million yuan, and the repurchase price shall not exceed 16 yuan / share. The repurchased shares will be used to implement equity incentive or employee stock ownership plan.

High quality growth in performance and bright growth in broadband services. In 2021, the intelligent terminal business realized an operating revenue of 5.961 billion, with a year-on-year increase of 26.12%. The company's global leading position in set-top boxes was stable; Broadband connection business achieved an operating revenue of 1.706 billion, a year-on-year increase of 89.97%. The professional display business realized an operating revenue of 28414069 million yuan, a year-on-year increase of 11.09%. The broadband service has made significant breakthroughs and achieved remarkable results in China's three major operator markets, radio and television markets and overseas markets.

VR innovation business has been continuously promoted, and the automotive electronics business has accumulated rich experience. The company's VR terminal products and customized solutions have achieved year-on-year growth in revenue. In 2021, high cost-effective VR all-in-one machine and pancake short focus VR split machine were newly listed. The technical layout, product R & D, customer landing, content ecology and other aspects have been continuously promoted, making full preparations for the opportunity of industrial inflection point. At the same time, the company's display touch system and digital LCD instrument products, as Tier1, have realized the shipment and sales of 300000 fixed-point products to brand automobile factories under the background of "lack of core" in the automobile industry, and accumulated rich fixed-point projects and customer resources, laying a foundation for subsequent sustained growth.

Repurchase demonstrates development confidence and maintains the "buy" rating: the company issues repurchase plans to demonstrate confidence in development prospects. We are optimistic about the continuous growth of the company's broadband business and the leading position of the traditional business of intelligent terminals. At the same time, innovative businesses such as VR are expected to enter the harvest period. We predict that the net profit attributable to the parent company from 2022 to 2024 will be 759, 933 and 1122 million yuan, and PE will be 19, 16 and 13X, maintaining the "buy" rating of the company.

Risk warning: the risk that the global demand for TV set-top boxes is less than expected; The risk that the progress of the operator's 10gpon bidding is not as expected; Supply chain risk; The development of VR industry is less than expected.

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