\u3000\u3 China Vanke Co.Ltd(000002) 152 Grg Banking Equipment Co.Ltd(002152) )
The company released its annual report for 2021, with annual revenue of 6.782 billion yuan (+ 5.79%), a record high, and net profit attributable to the parent company of 824 million yuan (+ 17.68%). The performance is in line with expectations, the advantages in the field of financial technology continue, the construction of urban intelligent business matrix is accelerated, and the digital economy is fully developed. Maintain buy rating.
Key points supporting rating
The performance grew steadily and the operating cash flow continued to improve. Q4 achieved a revenue of 2.51 billion yuan (+ 0.57%) and a net profit of 265 million yuan (- 1.92%) in a single quarter. The annual revenue of financial technology products in its core business was 4.213 billion yuan (+ 1.57%), and the overall performance was in line with expectations. R & D investment was 773 million yuan (+ 6.62%), accounting for more than 11% of revenue for three consecutive years. The net cash flow from operating activities was 1.591 billion yuan (+ 30.25%), and the CAGR in recent five years was 18.80%. The operating cash flow continued to improve.
Accelerate the construction of urban intelligent industry matrix and comprehensively carry out digital transformation. Urban intelligent products achieved an annual revenue of 2.569 billion yuan (+ 13.52%). In the 21st year, the company focused on the digital transformation business in terms of government affairs, transportation and safety. In terms of government affairs, the company won the 130 million Guangzhou "suizhi management" project, the first high-speed railway PSD contract in terms of transportation, and the 226 million yuan intelligent access control project in Shenzhen Longgang in terms of security. It has participated in holding 6 "specialized and special new" companies, accelerated the construction of multiple subdivision tracks of the digital economy, and has considerable growth breadth and height.
The advantages of financial technology have continued, and the overseas market has performed brilliantly. The company has ranked first in the market share of machines and tools in China for 14 consecutive years, and the mainstream models have become the first batch of Xinchuang products that have passed the adaptation verification. It has the capacity of multi currency full link construction, and the multi currency operation project in Hainan has been implemented. Financial technology has significant advantages and is expected to benefit from financial digital transformation. In addition, in the past 21 years, the overseas business income increased by 17.12% year-on-year, achieved contrarian growth under the spread of the global epidemic, and the gross profit margin remained high at 52.39%. The company has received large orders for BBVA bank equipment in Mexico for four consecutive years, and the technology and products continue to overflow overseas.
Valuation
It is estimated that the net profit from 2022 to 2024 will be RMB 960 million, RMB 1.09 billion and RMB 1.3 billion, and the EPS will be RMB 0.34, RMB 0.39 and RMB 0.46 (considering that the epidemic prevention and control requirements may lead to the slowdown of financial investment at the digital economy end and the remaining overseas risks, the revision will be 10 ~ 25%), and the corresponding PE will be 32x, 28x and 23x respectively. The valuation level is low and the buy rating will be maintained.
Main risks of rating
The epidemic situation has led to overseas failure as expected; The output effect of R & D investment is less than expected.
