\u3000\u3 China Vanke Co.Ltd(000002) 373 China Transinfo Technology Co.Ltd(002373) )
Main points:
Event overview
China Transinfo Technology Co.Ltd(002373) issued the 2021 annual report on March 29. This year, the company realized an operating revenue of 10.281 billion yuan, a year-on-year increase of 9.15%; The net profit attributable to the parent company was 724 million yuan,; The company's intelligent transportation business achieved a revenue of 4.621 billion yuan, a year-on-year increase of 1.55%, and the intelligent IOT business achieved a revenue of 5.656 billion yuan, a year-on-year increase of 16.19%.
Revenue maintained steady growth, and aiot business developed rapidly with the sinking of channels
On the revenue side, facing the external environment of the in-depth adjustment of the global industrial chain and the shortage of chips and other key problems, the company paid close attention to the changes of the industrial chain, accurately controlled all links of R & D, procurement and marketing, and maintained a high growth rate of 9.15%. Due to the increase of 3.3 billion yuan in R & D investment and 68.1% in the net profit margin of the parent company in the same period of 2020, the net profit margin attributable to R & D investment and R & D investment decreased by 4.0 billion yuan and 6.8 billion yuan respectively. This year, the company adopted the strategy of subsiding cities to accelerate the expansion of aiot business. At present, the company has established first-class offices in 30 provincial capitals and municipalities directly under the central government, and arranged more than 80 second-class offices in non provincial capitals. While enabling thousands of industries, the company achieved a year-on-year increase in business revenue of 16.19%. In addition, the company actively expands the overseas aiot market, with outstanding revenue performance in North America. It will achieve full coverage of countries with more than one million people in 2022.
Accurately cut into the field of automotive electronics and actively expand the AI coverage industry
By taking a stake in Lianlu intelligence, the company cuts into the automotive electronics business, opens up the complete closed loop of "road networking" and "vehicle end networking", and is expected to deepen business collaboration with Continental group, the second largest shareholder of Lianlu intelligence. This year, based on the delivery of hundreds of thousands of front mounted 4G T-box products, the company obtained two 5g v-box fixed-point projects, and plans to achieve mass production in 2022. Based on the module scheme jointly developed with Continental, the product is independently developed and upgraded to support the function of vehicle road cooperative automatic driving. In the field of AI, the subsidiary boguan intelligence has made full efforts. In addition to enabling smart transportation and smart IOT scenarios, it has expanded to many industries such as electric power, petrochemical, grain and oil, 3C manufacturing and so on. For example, help a large petrochemical enterprise pilot the smart gas station project and provide one-stop intelligent supervision of refueling and unloading. At present, it has landed at more than 200 stations.
The digital transformation of urban transportation is accelerated, and the industry maintains a high boom under the catalysis of policies
In the 14th five year plan for the development of digital transportation, the Ministry of transport proposed to build a digital intelligent intelligent transportation service system, strengthen the application of new generation information technology in the field of transportation services, and further clarify the overall trend of the transformation of the transportation industry from informatization to digital intelligence. According to imedia research, the smart transportation market will reach 228.7 billion yuan in 2022, with a compound growth rate of 24.05% in the past two years. From the improvement effect of the landing pilot, traffic intelligence is not only an effective starting point to improve highway traffic safety and efficiency, but also one of the connotations of the development of digital economy. In addition, according to IDC's calculation, the scale of China's smart city is expected to exceed US $35 billion in 2022, maintaining a high boom. As a leading enterprise in the industry, the company will take the lead in benefiting from the industry trend and realize the further expansion of business scale. We believe that with the completion of the company's sales channels and the further contraction of the cost side, it is expected to usher in the double increase of revenue scale and net profit.
Investment advice
Affected by the transformation trend of traffic intelligence, the company's intelligent transportation business is expected to maintain a high boom. In the future, with the completion of the sales channel, the channel sinking gain will appear, and the company's revenue and net profit are expected to usher in rapid growth. We expect the company to achieve revenue of 13.533/17.136/21.193 billion yuan from 2022 to 2024, with a year-on-year increase of 31.6% / 26.6% / 23.7%; The net profit attributable to the parent company was 922 / 1122 / 1368 million yuan, with a year-on-year increase of 27.3% / 21.7% / 22.0%, maintaining the "buy" rating.
Risk tips
1) R & D breakthrough is less than expected; 2) Policy support is less than expected; 3) Project delivery was less than expected.
