\u3000\u3 China Vanke Co.Ltd(000002) 465 Guangzhou Haige Communications Group Incorporated Company(002465) )
Event overview
The company issued an annual report, and the revenue and profit increased significantly. In 2021, the company realized an operating revenue of 5.474 billion yuan, a year-on-year increase of 6.87%; The net profit attributable to the parent company was 654 million yuan, a year-on-year increase of 11.61%; Net profit deducted from non parent company was 564 million yuan, with a year-on-year increase of 22.83%.
Analysis and judgment:
Thanks to the performance of wireless communication and Beidou, the company achieved double increases in gross profit margin and net profit margin
In 2021, the company achieved an operating revenue of 5.474 billion yuan, a year-on-year increase of 6.87%, a gross profit margin of 37.34%, a net profit margin of 12.67%, and a net profit attributable to the parent company of 654 million yuan, a year-on-year increase of 11.61%; Net profit deducted from non parent company was 564 million yuan, with a year-on-year increase of 22.83%.
By product,
1) the company’s wireless communication revenue was 2.666 billion yuan, with a year-on-year increase of 16.71% and a gross profit margin of 46.32%, a decrease of 1.88 PCT compared with the same period last year. The company’s products cover the fields of short wave communication, ultrashort wave communication, satellite communication, digital trunking, multi-mode intelligent terminal and system integration. At present, multi-mode intelligent terminal is expanding its application scenarios.
2) Beidou navigation realized a revenue of 425 million yuan, with a year-on-year increase of 5.14% and a gross profit margin of 66.44%, with a year-on-year increase of 6.95pct. With the completion of the networking of beidou-3 global satellite navigation system and the gradual improvement of the satellite navigation system and satellite positioning service industry chain, “Beidou +” will fully serve the fields of transportation, public safety, disaster relief and mitigation, agriculture, forestry, animal husbandry and fishery, urban governance and other industries, and integrate into infrastructure such as power, finance and communication. The company takes the lead in realizing the whole industrial chain layout of “chip, module, antenna, terminal, system and operation”. We expect to accelerate the growth in the deep integration application of Beidou.
3) Aerospace realized a revenue of 267 million yuan, a year-on-year decrease of 14.03% and a gross profit margin of 45.52%, a year-on-year decrease of 1.05pct. Mojie innovation, a subsidiary, is an enterprise listed on the new third board (neeq: 836008), which is deeply engaged in the simulation industry. Chida aircraft, a subsidiary, is one of the mainstream suppliers of international aviation giants, domestic aircraft manufacturers and engine manufacturers. At present, it has started the spin off and listing work.
4) the revenue from software and information services was 2.043 billion yuan, a year-on-year decrease of 1.00%, and the gross profit margin was 17.17%, an increase of 1.15 PCT year-on-year. The main driving force of the company’s revenue growth is the wireless communication business, and the increase in gross profit margin is due to the rapid growth of wireless communication business revenue and the significant decline of Beidou navigation business cost.
The overall cost side is stable, the R & D field continues to invest, and the overall operation is relatively stable
Continue to increase R & D investment, and the overall cost remained stable during the period. The overall expense rate of the company in 2021 was 23.15%, an increase of 1.24pct over the same period last year, mainly due to the increase of R & D expense rate. The rates of sales / management / Finance / R & D expenses were 3.77% / 5.55% / – 0.75% / 14.59% respectively, which were + 0.37 / + 0.44 / – 0.65 / + 1.08pct respectively compared with the same period last year. During the reporting period, the development projects were intensively invested in bidding, the prototype development investment of scientific research projects was large, and the R & D cost increased year-on-year, driving the overall cost rate to rise slightly. The main R & D projects include new beidou-3 navigation equipment, short wave & ultrashort wave communication equipment and system, new digital trunking communication base station and terminal equipment, new satellite communication equipment and system, unmanned system, etc. On the asset side, due to business growth and increased material preparation, the company’s inventory increased, the payment for goods also increased, and the net cash flow from operating activities decreased significantly. As of the reporting period, the inventory in 2021 was 1.91 billion yuan, still at a record high level, mainly due to business growth and increasing the impact of raw material preparation. The net cash flow from operating activities was 628 million yuan, a year-on-year decrease of 56.51%.
The layout of the whole industrial chain in the field of Beidou has successfully bid for a number of major ordering projects in the future, seizing the highland of Beidou No. 3 core technology
The company takes the lead in realizing the whole industrial chain layout of “chip, module, antenna, terminal, system and operation” in Beidou field. During the reporting period, the company was among the best and successfully shortlisted in the bidding of many major projects related to the main ordering directions in the short, medium and long term. Among them: short wave service breaks through the field of airborne mainstream platform again; The new spectrum general-purpose communication equipment passed the state identification and broke through the field of general-purpose handheld ultrashort wave for the first time; Bidding for the next generation software radio communication equipment platform, becoming the unit with the most shortlisted projects of the platform; Winning the first ad hoc network waveform project and entering the field of wireless broadband communication; The research and development of new generation digital trunking products have been smoothly promoted; The multi type communication and guidance integrated equipment, which integrates various technical means such as satellite communication, Beidou and inertial navigation, has stable and reliable performance, and is gradually installed on a variety of vehicle platforms; A multi-mode intelligent terminal has been finalized and delivered in batch. In addition, in the core technology field of beidou-3, the company has developed a variety of beidou-3 general terminals and equipment to achieve effective layout in the market of special institutions, and the bidding has been successfully shortlisted; At the same time, focus on the Beidou application industry, focus on the transportation field, rely on the strategic cooperation reached with the transportation communication information center of the Ministry of communications of China, jointly carry out in-depth cooperation in the application of Beidou System in road transportation, water shipping and other fields, and create a new generation of overall solution for transportation service supervision based on Beidou 3 system, artificial intelligence and big data analysis. In addition, it also actively promoted the implementation of projects in the fields of emergency, energy, agriculture and forestry.
The field of AI technology militarization has been comprehensively arranged, and the intelligent unmanned market has been expanded smoothly
Under the “three modernizations” direction of equipment development in the 14th five year plan, intellectualization is the long-term goal of national defense and military modernization. The company’s long-term high proportion of R & D investment is in the field of intelligent unmanned, and the intelligent unmanned system project has achieved leapfrog development. In terms of unmanned system, the first unmanned system scientific research project contract has been signed; All subjects participated in the “crossing obstacles 2021” land unmanned system challenge entered the top five; Won the second place in the air force “unmanned front” intelligent UAV cluster system challenge; Participate in the armed police “Zhiwei Cup” unmanned system challenge and obtain the qualification to participate in the subsequent bidding of unmanned projects. In terms of unmanned communication, it has united with several advantageous units to obtain excellent results in all the entries of the land unmanned system challenge; In terms of intelligent core components, an automatic identification and tracking technology was shortlisted in the user pre research project of an organization, which is the first breakthrough in the intelligent application of task system, and further consolidated the company’s competitive advantage in the field of unmanned system and communication.
Investment advice
During the 14th Five Year Plan period, satellite navigation and satellite Internet are key industries supported by the state. As one of the leading manufacturers of Beidou, the performance growth momentum of the company is expected to continue. Considering the performance uncertainty in the aerospace field under the influence of the epidemic, the profit forecast is slightly reduced. It is expected that the revenue will be adjusted from 73.27/88.24/n/a to 6.145/71.228354 billion yuan respectively from 2022 to 2024, and the earnings per share will be adjusted from 0.39/0.47/n/a to 0.36/0.45/0.53 yuan respectively, Corresponding to the closing price of 10.21 yuan / share on March 25, 2022, PE is 28.3 / 22.9 / 19.3 times respectively. Maintain the “buy” rating.
Risk tips
Downstream orders are less than expected; The collection is less than expected; Goodwill impairment risk; Inventory falling price reserve risk; Systemic risk.
