\u3000\u3 Guangdong Shaoneng Group Co.Ltd(000601) 138 Foxconn Industrial Internet Co.Ltd(601138) )
Event: the company released its annual report for 2021. The annual revenue was 439557 billion yuan, yoy + 1.80%, the net profit attributable to the parent company was 20 billion yuan, yoy + 14.80%, and the net profit not attributable to the parent company was 18.581 billion yuan, yoy + 13.39%. In 2021, the company plans to distribute a total cash dividend of 9.918 billion yuan (including tax), accounting for 49.56% of the net profit attributable to the parent company.
Comments: under the background of epidemic + supply chain shortage, the performance has increased against the trend and the business toughness is sufficient. In 2021, the company achieved revenue of 439557 billion yuan, yoy + 1.80%, net profit attributable to parent company of 20 billion yuan, yoy + 14.80%, net profit attributable to non parent company of 18.581 billion yuan, yoy + 13.39%. In the single quarter of 21q4, the company’s revenue was 134.2 billion yuan, yoy-10.06%, QoQ + 22.75%, and the net profit attributable to the parent company was 9.003 billion yuan, yoy + 4.38%, QoQ + 110.35%. Under the adverse factors such as global epidemic and supply chain shortage, the growth rate of revenue, net profit and net profit reached a new high. In terms of business segments, cloud computing / communication and mobile network equipment / industrial Internet achieved revenue of 177694 billion yuan / 258966 billion yuan / 1.685 billion yuan respectively, yoy + 1.36% / + 1.95% / + 16.92%, accounting for 40.43% / 58.92% / 0.38% of the overall revenue, with gross profit margins of 4.14% / 10.83% / 43.87% and yoy-0.01pct / + 0.34pct / + 5.01pct respectively. In the case of rising production costs of raw materials and logistics in 2021, the company’s overall gross profit margin has increased steadily, which fully reflects the company’s competitiveness in products, technology and scale. The company’s sales / management / R & D / financial expense rates are 0.20% / 0.95% / 2.46% / – 0.19%, yoy-0.29pct / – 0.10pct / + 0.14pct / – 0.14pct respectively. In 2021, the company plans to distribute a total cash dividend of 9.918 billion yuan (including tax), accounting for 49.56% of the net profit attributable to the parent company.
Rooted in the mainland, the company’s growth logic remains unchanged: the white label of cloud computing and the construction of data center + 5g laying + 5g machine replacement trend / shell ASP improvement / maintenance of high share. It is judged that the 5g investment will be deduced according to the logic of the base station end – the whole industrial chain of Netcom – the terminal. The overall upgrading demand of Netcom to 400g is expected to increase significantly, and the demand for a large number of streaming cloud services drives the growth of the server data center. 1) Cloud Server: continue to benefit from the high growth rate of ODM customers + share expansion + / expansion of new customers + iteration of server platform upgrade + increase of IDC capex (Dell’Oro predicts that the global IDC capital expenditure will exceed 240 billion US dollars in 2022) / China’s “East digital West computing” construction + share leadership + popularization of terminal, network and cloud computing collaboration forms and expansion of application scenarios such as automatic driving; 2) Netcom: 5g construction continues to promote, application scenarios are enriched + Zte Corporation(000063) win the lawsuit, end the “five-year monitoring period” to stimulate the demand for upstream manufacturers + increase the layout of industrial Internet and promote the process of industrial digitization; 3) Structural parts: the processing time of 5g millimeter wave middle frame is prolonged, the value is increased, and the performance elasticity brought by the high proportion of high-end mobile phones and the growth of sales volume is benefited.
In the medium and long term, we are optimistic about the gradual realization of the company’s industrial Internet transformation, cross industry and cross field enabling transformation services, and continue to expand the industry business line. The transformation of industrial Internet has gradually entered the cashing period. Project development + product output will penetrate into multiple industries in the future, with large growth space. Based on its own Beijing Vastdata Technology Co.Ltd(603138) advantages and the application of digital technology, the company has realized its own digital transformation of intelligent manufacturing. At the same time, it provides an overall solution of Lighthouse factory with “lighthouse factory + Digital Manufacturing Platform” as the core for large and benchmark enterprises in the industry, enabling the digital transformation of the industry. By the end of 21 years, the company has incubated 10 internal lighthouse factories to assist more than 50 industries in realizing the digital transformation of the industry.
Accelerate the layout of semiconductor + new energy vehicles + meta universe infrastructure and industrial applications, and open the second growth curve with multi-dimensional layout. Semiconductor: establish the Internet Ecology of semiconductor industry, focus on advanced packaging, testing, equipment and materials, EDA software, chip design and other fields, and realize the extension of value chain; New energy vehicles: aim at the three fields of new energy vehicles – electric drive and electronic control, intelligent vehicle and vehicle networking, and promote the lightweight, power saving and intelligent development of new energy vehicles; Synergy between metauniverse infrastructure and industrial application: continue to make efforts to diversify the application in the industrial field, and create the “industrial metauniverse” with the construction scheme of “lighthouse factory”.
Investment suggestion: with reference to the revenue, net profit and growth rate in 21 years, adjust the revenue in 22 and 23 years from 23.1 and 28.2 billion yuan to 22.7 and 25.3 billion yuan.
Risk tips: macroeconomic fluctuations, raw material price fluctuations, new business progress is less than expected, and the epidemic situation worsens
