\u3000\u30 China High-Speed Railway Technology Co.Ltd(000008) 10 Skyworth Digital Co.Ltd(000810) )
Events
The company released its annual report for 2021, and achieved an operating revenue of 10.847 billion yuan in 2021, with 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%; Slightly exceeding market expectations. In addition, the company plans to buy back a total amount of RMB 100 million to RMB 200 million at a price of no more than 16 yuan / share for equity incentive or employee stock ownership plan to deeply bind the core backbone interests.
Comments are as follows
The performance slightly exceeded expectations, and the net profit of main business increased significantly: the net profit attributable to the parent company was 422 million yuan, a year-on-year increase of 9.93%. The provision for credit impairment loss and inventory falling price loss in the current period amounted to 311 million yuan, of which the bad debt provision caused by the bankruptcy liquidation of Guoan Guangshi was 258 million yuan. Without considering the impairment brought by Guoan Guangshi and the impact of one-time factors such as equity disposal income of Qunxin company, the net profit brought by the company's main business will increase significantly. In a single quarter, the company's Q4 revenue was 3.224 billion yuan (YoY + 25.43%), and the net profit attributable to the parent company was 153 million yuan (YoY + 48.89%), and the performance recovered.
The gross profit rate decreased slightly and the expense rate decreased: the gross profit margin of the company decreased by 1.95pct in 21 years. Among them, the gross profit margin of broadband services increased by 3.59pct, mainly due to the increase of added value driven by the upgrading of GPON to 10gpon, and the scale effect of the increase of the company's share appeared. The gross profit margin of intelligent terminal business decreased by 5.33pct, mainly due to the rise in the price of raw materials such as chips. In addition, the company's expense rate during the period decreased by 3.25 PCT, and the sales / management / R & D / financial expense rate decreased by 0.94/1.01/0.85/0.45 PCT respectively.
The revenue of terminal business is stable, with high growth of Gigabit broadband: 1) the company's broadband connection business continues to grow at a high speed, with a 20152021cagr of 87.10%. Among them, the broadband service revenue in 2021 was 1.706 billion yuan (YoY + 89.97%). We believe that the capital expenditure of operators is gradually inclined to the fixed network side, and Gigabit broadband is expected to usher in a business cycle. 2) The company's set-top box business grew steadily, with a revenue of 5.961 billion yuan (YoY + 26.12%) in 2021. There is still room for a large share of overseas markets in the future.
VR hardware equipment has strong strength and full development potential: as the target of A-share of scarce VR equipment, the company has more than 7 years of experience in the R & D of VR hardware products and industrial solutions, and has mass produced a variety of VR head mounted display equipment products. The company has the advantages of ultra short focal length optics technology and a number of software algorithm patents, with full business potential.
In overseas markets, the company's VR products have been sold in the United States, Japan, South Korea, the European Union and other countries and regions. In the Chinese market, the company has an earlier layout in the field of medical visits and has certain first mover and comparative advantages; In the field of education, we have cooperated with Chinese educational content partners to launch solutions, and also achieved continuous shipment and sales. Content ecology, the company's VR team has captured nearly more than 200 national 4A level scenic spots 8KVR video content, and Kwai and SKYWORTH VR content distribution platform on-line, content platform has more than 100 hours 8K panoramic video and dozens of game applications, integrating high-quality video content.
There are sufficient orders for on-board display, and the market share is expected to gradually increase: the demand for intelligent vehicle display is increasing, and it will develop towards multi screen and large size in the future. The company's R & D and technical advantages in on-board display, such as high color gamut, high contrast, high integration black, narrow frame, ultra-thin, etc. as Tier1 enterprise, the company has designated the central control display screen and digital liquid crystal instrument of relevant vehicles of more than 10 domestic and joint venture brand automobile manufacturers such as Chery and Geely. The supply scale has initially formed in the reporting period, and 300000 designated products have been shipped and sold to brand automobile manufacturers.
Investment suggestion: on the basis of deep cultivation of the main business, the company focuses on the VR field. The product parameters are better than shoulder products, and the price has a competitive advantage. In addition, the company's forward-looking layout of automotive electronics, central control panel and liquid crystal instrument are expected to accompany the rising trend of volume and price in the industry, bringing new growth points to the company's performance. We had previously estimated that the net profit attributable to the parent company for 21-23 years would be 360 million yuan, 740 million yuan and 909 million yuan. Due to the better than expected performance of the company in 21 years and the strong certainty of Gigabit broadband and automotive electronics business in 22 years, we raised the net profit attributable to the parent company for 22-24 years to 774 / 999 / 1257 million, corresponding to 21 / 16 / 13 times of PE, and maintained the "buy" rating.
Risk tip: the promotion of wi-fi6 is not as expected; The price rise of upstream chips and raw materials affects profitability; The execution progress of automobile orders is lower than expected; The development of VR industry is less than expected.
