\u3000\u30 Chongqing Baiya Sanitary Products Co.Ltd(003006) 38 Fibocom Wireless Inc(300638) )
Event: the company released its annual report for 2021. In 2021, it achieved a total revenue of 4.109 billion yuan, a year-on-year increase of 49.8%, and a net profit attributable to the parent company of 401 million yuan, a year-on-year increase of + 41.5%.
Under the influence of the rise in the price of raw materials and the epidemic, the net profit margin of the company to its parent decreased, but it still remained at a relatively stable level. We believe that this is mainly due to its fine management ability Fibocom Wireless Inc(300638) 2021 gross profit margin was 24.1%, down 4.2pct from the previous year. But at the same time, its expense rate in 2021 was 16.1%, a decrease of 2.3pct compared with the previous year, mainly due to the company’s good control over the sales and management expense rate. In 2021, the net interest rate attributable to the parent company was 9.77%, slightly lower than 10.34% in the previous year.
With strong support for R & D, new products of 5g and on-board business continue, and downstream certification breakthroughs. The company’s R & D expenses in 2021 reached 429 million yuan, a year-on-year increase of + 32.9% over 2020. In 2021, the company continued to launch new products for 5g, 4G and Nb IOT, and accelerated the certification in North America and Europe. During the reporting period, the company successfully completed the certification of German Telecom for 5g module fm150-ae and fg150-ae, and obtained the certification of Vodafone, the world’s second largest mobile telecom operator. 5g module fg360-na took the lead in obtaining the certification of operators in North America.
The second growth curve of vehicle business is clear by taking the east wind of intelligent network connection. The company’s laptop and POS businesses are still the basic disk for continuous growth. In the field of intelligent network connected vehicles, the company plans to acquire the remaining equity of Ruiling wireless in 2021. Ruiling wireless is the world’s first manufacturer of vehicle front mounted modules and has accumulated 15 years of deep experience in the field of embedded vehicle front mounted cellular modules. This acquisition will help the company build first mover advantages and barriers in the field of vehicle networking. With reference to Ruiling wireless’s revenue of 1.614 billion yuan in 2020, the company’s revenue volume will increase significantly after the completion of M & A. However, considering the uncertainty of review cycle and preparation of application materials, the impact of consolidation is not considered in this report.
Investment suggestion: we predict that the net profit attributable to the parent company from 2022 to 2024 will be RMB 583 / 852 / 1179 million, corresponding to PE of 26 / 18 / 13X, maintaining the “buy” rating of the company.
Risk tips: raw material price rise risk, RMB exchange risk and intensified industry competition.
