\u3000\u30 Chongqing Baiya Sanitary Products Co.Ltd(003006) 38 Fibocom Wireless Inc(300638) )
Event: on March 29, 2022, the company issued its annual report for 2021. In 2021, the company achieved an operating revenue of 4.109 billion yuan, a year-on-year increase of 49.78%; The net profit attributable to the parent company was 401 million yuan, a year-on-year increase of 41.51%.
The performance growth is in line with expectations: the development trend of the Internet of things industry is good in 2021. With the enrichment of the company's product line and the gradual improvement of the marketing layout, the market expansion effect is obvious; At the same time, under the background of material shortage, the company actively prepared materials to ensure product delivery and quickly responded to customer needs. The company's operating revenue and net profit attributable to the parent company achieved rapid growth. In terms of vehicle business, the subsidiary Guangtong Yuanchi achieved an operating revenue of 398 million yuan in 2021. In 2021, the company's overall gross profit margin was 24.10%, with a year-on-year decrease of 4.21pct, which was mainly affected by the rise in the price of upstream raw materials.
Optimize product layout and promote Internet of vehicles business: the company continues to enrich product models. In 2021, it enriched a series of broadband module products such as fg101, fm101, nl952, l718 and l816, which can be widely used in industries such as industrial routing, security, Internet of vehicles and shared consumption, covering Asia, Europe, the Middle East, Africa, North America, Latin America, Australia, Japan and China. The company joined hands with Dbappsecurity Co.Ltd(688023) to release the intelligent module solution equipped with the "safety heart" software platform of the Internet of things, so as to provide strong security guarantee for the terminal equipment of the Internet of things. In addition, the ltecat1 module MC116 released by the company for the world enriches the overseas CAT1 product line. In 2021, the company is also actively promoting the layout of the Internet of vehicles business. Guangtong Yuanchi, a wholly-owned subsidiary of its vehicle front loading business, has released a variety of vehicle specification modules, including ltecat4 series module, intelligent module al656s, CAT1 module al426, wi-fi4 module W100 and wi-fi6 module aw916. The company's 5g vehicle specification module an958-ae is a 5gnrsub-6 vehicle specification communication module released worldwide. It has passed the test of Ericsson global network terminal test center and obtained the certification certificate. The continuous expansion of the Internet of vehicles business will further open the growth space for the company.
R & D investment continues to increase, reaching 456 million yuan in 2021: the company pays attention to scientific and technological innovation ability and continues to promote enterprise technological innovation. In 2021, the company's R & D investment reached 456 million yuan, accounting for 11.09% of the company's operating revenue. By the end of 2021, the company has obtained 71 invention patents, 51 utility model patents and 60 computer software copyrights in the research and development process of 2G / 3G / 4G / 5G communication protocol stack software development technology, industrial grade - 40 to + 85 degree product performance technology, RF calibration control technology, integrated product development and design technology, interface expansion technology and integrated application technology of wireless communication module and its application industry communication solutions. The mastery of relevant technologies enables the company's products to meet the applications of mobile payment, mobile Internet, Internet of vehicles, smart grid, security monitoring and other fields, and lays a good foundation for the company to explore more Internet of things applications.
The product certification results are quite fruitful, and many modules have entered the overseas market: during the reporting period of 2021, the company's 5g modules fm150-ae and fg150-ae successfully completed the Deutsche Telekom Ag certification and obtained the certification of Vodafone, the world's second largest mobile telecom operator, becoming the world's first 5g module certified by Deutsche Telecom, which is an important achievement for the company's products to enter the overseas market. The company's 5g vehicle specification level module an958-ae has successively obtained three certificates, successfully passed the CCC, SRRC and nal certification, and accelerated the upgrading of the company's vehicle front mounted module business from 4G to 5g. The company's 5g module fg360-na successfully completed FCC certification and took the lead in completing the certification of important operators in North America. This is the first 5g module to obtain FCC certification based on MediaTek t750 chip. End customers using Fibocom Wireless Inc(300638) 5g module fg360-na can quickly and widely deploy 5g equipment and applications in the United States. In addition, the company's ltecat1 module l610-eu was again certified by Deutsche Telekom AG, Vodafone and Spain Telecom, which is an important achievement of the company's products moving towards globalization.
Investment suggestion: the company is the world's leading provider of wireless communication solutions and wireless modules for the Internet of things. We estimate that the company's operating revenue from 2022 to 2024 will be 5.738 billion yuan (+ 39.6%), 8.260 billion yuan (+ 44.0%) and 11.563 billion yuan (+ 40.0%) respectively; The net profit attributable to the parent company is expected to be 567 million yuan (+ 41.3%), 762 million yuan (+ 34.3%) and 1061 million yuan (+ 39.4%) respectively, corresponding to EPS of 1.37/1.84/2.56 yuan respectively. We gave the company 33.5 times PE in 2022, corresponding to the target price of 45.90 yuan, maintaining the "Buy-A" investment rating.
Risk tips: increased market competition, loss of core technical personnel and disclosure of core technology, exchange rate fluctuations, outsourcing risks
