\u3000\u30 Jinzai Food Group Co.Ltd(003000) 07 Hanwei Electronics Group Corporation(300007) )
Event:
The company issued an annual report, with a revenue of 2.316 billion yuan in 2021, a year-on-year increase of 19.32%; The net profit attributable to the parent company was 263 million yuan, a year-on-year increase of 28.05%; The net profit deducted from non profit was 176 million yuan, an increase of 45.6% year-on-year.
Our comments are as follows:
1. The performance is basically in line with expectations, and the profit growth rate in a single quarter continues to rise
The growth rate of the company's performance in 2021 was 28.05%, close to the median value of the previous forecast of 30%, which was basically in line with the market expectation (compared with the year-on-year growth of 57.58% after excluding the influence of infrared thermopile temperature sensor in the same period of last year), and the growth rate of deducting non net profit was 45.6%, showing a rapid growth trend. Looking at the profit of a single quarter, the net profit attributable to the parent company in 21q4 was 54 million yuan, with a year-on-year growth rate of 79.7%. Compared with the growth rate of Q3 (+ 35.65%) and Q2 (+ 2.98%), the quarterly growth rate showed a continuous upward trend. In addition, the payment fee for equity incentive in 2021 was about 10.06 million yuan. Excluding this impact, the net profit attributable to the parent company increased by 32.7% year-on-year.
2. The growth rate of revenue was significantly improved, and the effect of expense control was obvious
The company's revenue in 21 years was 2.316 billion yuan, a year-on-year increase of 19.32%. Among them, the sensor revenue was 277 million yuan, a year-on-year decrease of 13.73% and the gross profit margin was 39.82%; Intelligent instruments amounted to 560 million yuan, with a year-on-year increase of 53.06% and a gross profit margin of 45.14%; The Internet of things comprehensive solution was 684 million yuan, with a year-on-year increase of 17.42% and a gross profit margin of 29.7%; Public utilities amounted to 755 million yuan, with a year-on-year increase of 18.68% and a gross profit margin of 25.09%.
On the cost side, the overall gross profit margin of the company in 21 years was 33.47%, the same as last year; In terms of expenses, the scale effect of the company is obvious, the cost control has achieved results, and the sales / management / financial expense ratio has decreased year-on-year. In 2021, the overall net interest rate was 14.04%, with a year-on-year increase of 1.18 PCT.
3. The company's business benefits from the continuous penetration of the Internet of things & continuous breakthroughs in new products and new fields, and broad long-term growth space
Specific business:
1) sensor: the company has obvious advantages in the field of security and environmental protection, and has achieved market breakthrough in the field of household appliances and automobiles. It has been successfully shortlisted as Gree, Midea, Huawei, Xiaomi and other well-known enterprises to achieve mass supply; Vehicle mounted products have passed iatf16949 certification and obtained fixed-point orders from vehicle enterprises; Breakthroughs in the industrialization of new products flexible sensors, close cooperation with heads of Xiaomi technology, Iflytek Co.Ltd(002230) , No. 9 technology, Yadi technology and other industries, and strong growth momentum;
2) intelligent instrument: domestic substitution in the industrial field ushered in an opportunity. The company seized the opportunity of domestic substitution, successfully won the annual framework of PetroChina and Sinopec, and made a breakthrough in the blank fields of CNOOC, semiconductor and other Chinese products. At the same time, with the introduction of the new gas safety production law, gas safety will become the consensus of rigid demand. The demand for gas instruments is strong, and the market space it brings will not be digested in the short term. The cycle is expected to be at least 2-3 years, which is expected to drive the continuous and high growth of the company's corresponding products;
3) Internet of things solution: the company's business is deeply arranged in smart cities / underground comprehensive pipe corridors such as water supply / drainage, environmental protection, heating and gas. Through the intelligent upgrading of Internet of things technology (digital and intelligent transformation based on GIS three-dimensional position information and perceived state information), the company will deeply benefit from the construction of smart cities / smart pipe corridors, and the corresponding business is expected to achieve sustained and rapid growth.
Profit forecast and investment suggestion: with the advent of the era of Internet of things, all industries in the whole society are facing intelligent and digital development opportunities, which will drive the demand for front-end sensors and instruments. At the same time, the company will layout the Internet of things application business and make efforts at the front-end Internet of things and instruments, and the space is expected to be gradually opened. Considering the price of upstream raw materials, the net profit of the company in 22-23 years was adjusted to 370 million yuan and 480 million yuan respectively (the original value was 380 million yuan / 500 million yuan), corresponding to 17 times PE in 22 years, maintaining the "buy" rating.
Risk tips: intensified competition in the Internet of things industry, tension in upstream chips and risk of rising prices of raw materials, management risk caused by group operation, technical risk caused by insufficient product innovation, etc
