\u3000\u3 Guangdong Shaoneng Group Co.Ltd(000601) 138 Foxconn Industrial Internet Co.Ltd(601138) )
Event: the company released its annual report for 2021 on March 22. In 2021, the company achieved a total revenue of 439.56 billion yuan, a year-on-year increase of 1.8%; The net profit attributable to the parent company was 20.01 billion yuan, a year-on-year increase of 14.8%; Net profit deducted from non parent company was 18.58 billion yuan, with a year-on-year increase of 13.4%; The performance growth is in line with market expectations.
In the fourth quarter, the performance maintained year-on-year growth, and the profitability improved against the trend. In the fourth quarter, the company achieved an operating revenue of 134.2 billion yuan, a year-on-year increase of - 10% and a month on month increase of 22.8%; The net profit was 9 billion yuan, an increase of 4.4% year-on-year and 110.4% month on month. The slowdown of the company's growth in the fourth quarter was mainly due to the high base in the fourth quarter of 2020 and the postponement of some major customer orders to the first quarter of 2022. In 2021, the company's gross profit margin was 8.31%, a slight decrease of 0.04 PTC year-on-year, and the net profit margin was 4.56%, a year-on-year increase of 0.52 PTC. Under the multiple adverse effects of the epidemic and the shortage of raw materials in the supply chain, the company's profitability improved against the trend.
Promote the development of green economy of all companies. Digital economy has become an important starting point for economic development. According to the forecast data of IDC, the compound growth rate of China's ICT market is expected to be 6.3% from 2020 to 2025, and the scale of ICT market is expected to reach 4.2 trillion yuan in 2025. The company is a leading enterprise in the global digital economy, and its business lines are developing healthily and continuously under the continuous promotion of the digital economy:
1) the cloud computing sector achieved an operating revenue of 177.7 billion yuan in 2021, with a year-on-year increase of 1.36% and a gross profit margin of 4.14%, a year-on-year decrease of 0.01 PTC. The company has launched a new generation of modular computing and storage units to help realize customized demand, flexible configuration, shorten R & D cycle and improve R & D efficiency. The gradual popularity of edge computing application scenarios will not only drive the rapid growth of the company's autopilot and other related products, but also promote the mass production and shipment of aigpu servers and other products. The company has increased the research and development of energy-saving technology in the data center and launched a one-stop solution of submerged liquid cooling technology to effectively improve energy efficiency and reduce the operation cost of the data center.
2) in 2021, the communication and mobile network equipment sector achieved an operating revenue of 259 billion yuan, with a year-on-year increase of 1.95%, a gross profit margin of 10.83%, and a year-on-year increase of 0.34 PTC. The company has increased its layout in the field of "industrial meta universe" and paid more attention to the visualization of end-to-end applications in the industrial field. Industrial ar products can be applied to remote troubleshooting scenarios and improve the degree of intelligent manufacturing. At the same time, the company continued to layout production lines such as smart phones, wearable devices and smart homes, and the shipment volume continued to grow.
3) the industrial Internet sector achieved an operating revenue of RMB 1.685 billion in 2021, with a year-on-year increase of 16.9%, and a gross profit margin of 43.87%, with a year-on-year increase of 5.01 PTC. The industrial Internet is the key path for the transformation and upgrading of the manufacturing industry. The "lighthouse factory" has played a leading role in building the overall ecosystem of the manufacturing industry and provided a new driving force for promoting the development of the digital economy. The company has served 1300 + enterprises in 8 industries and built 5 world-class lighthouse factories. The company launched the lighthouse navigation plan, and it is expected to build 10 world-class lighthouse factories by 2025, help 100 leading enterprises realize complete digital transformation, and help 1000 manufacturing enterprises import digital technology applications. According to the data of markets and markets, the global smart factory market is expected to grow to US $134.9 billion by 2026, with a compound annual growth of 11%.
Investment suggestion: the company adheres to the two wheel drive development of "intelligent manufacturing + industrial Internet", and the digital economy era is expected to inject new vitality into the company's growth. We estimate that the company's revenue from 2022 to 2024 will be 464.73 billion yuan, 492.85 billion yuan and 524.11 billion yuan; The net profit was 21.05 billion yuan, 23.3 billion yuan and 25.69 billion yuan. Maintain the "Buy-A" investment rating. Give 15 times PE in 2022, corresponding to the target price of 15.9 yuan.
Risk tip: the development of industrial Internet is less than expected, the market demand of Telecom and enterprise terminal equipment is less than expected, and the development of edge computing and AI industry is less than expected
