\u3000\u30 Beijing Zznode Technologies Co.Ltd(003007) 90 Dongguan Yutong Optical Technology Co.Ltd(300790) )
Performance review
On March 27, 2022, the company announced its annual report. In 2021, the company’s revenue was 2.062 billion yuan, an increase of 40%, the net profit attributable to the parent was 243 million yuan, an increase of 91%, and the non net profit attributable to the parent was 235 million yuan, an increase of 101%. Meet expectations.
Business analysis
The strong demand for security drives the high increase of income, and the increase of grain rate drives the rise of gross profit margin. 1) In 2021, the demand of traditional security companies increased by 52.2%, with the main business volume of security companies increasing by 52.2%. The net profit margin of the company reached 11.8%, increased by 3.2pct compared with 2020, mainly due to the gross profit margin of 26.5%, increased by 4.7pct compared with 2020, and the gross profit margin increased significantly, mainly due to the increase of grain mobility.
The marginal prosperity of security demand weakened, and the R & D rate increased significantly, which dragged down the company’s Q4 performance. In 2021, the company’s Q4 revenue reached 490 million yuan, with a decrease of 13%, and the net profit attributable to the parent company was 17 million yuan, with a decrease of 65%. The decline of the company’s Q4 revenue was mainly due to the security industry entering the destocking cycle and the weakening marginal prosperity. Q4 net interest rate was 3.5%, a decrease of 5.2pct compared with the same period last year, mainly due to the increase of 2pct, 3.2pct and 5.5pct in sales rate, management rate and R & D rate.
The car lens is progressing smoothly, opening up the growth space of the company. 1) In August, the company announced that it had invested 50 million yuan to set up a wholly-owned subsidiary, Yutong automotive vision, focusing on the layout of on-board lenses. 2) We expect that the market scale of vehicle lens will exceed 30 billion yuan in 2025, far exceeding the market scale of security lens (10 billion yuan). At present, the company has shipped afterloading products. The company has both glass lens and plastic lens manufacturing technology, and has cooperated with Haikang and Huawei security departments for many years. It is expected that the company is expected to successfully import the front loading market in three years and contribute incremental profits to the company.
Investment suggestion: considering the weakening of security prosperity and the high superimposed equity incentive expenses (the company’s equity incentive expenses from 2022 to 2024 reached 79 million yuan, 54 million yuan and 26 million yuan), we reduced the performance of 2022 and 2023 to 250 million yuan and 320 million yuan, an increase of 2% and 27%, a decrease of 24% and 23%, and it is expected that the performance of the company in 2024 will be 400 million yuan, an increase of 25%. Adopt PE valuation and give the company a buy rating, with a target price of 33.4 yuan (30 2022eps).
Risk tip: the demand for traditional security is less than expected, the growth of consumer lens is less than expected, the expansion of high-end lens market is less than expected, the market competition is intensified, and customers are relatively concentrated.
