\u3000\u30 Chongqing Baiya Sanitary Products Co.Ltd(003006) 38 Fibocom Wireless Inc(300638) )
Event: Fibocom Wireless Inc(300638) released the annual report for 2021. In 2021, the company achieved an operating revenue of 4.109 billion yuan, an increase of 49.78% year-on-year; The net profit attributable to the parent company was 401 million yuan, a year-on-year increase of 41.51%; The non net profit deducted was 373 million yuan, a year-on-year increase of 42.72%, and the performance was in line with expectations.
Comments:
Short term gross profit is under pressure, and cost control drives the recovery of profitability. The company’s gross profit margin in 2021 was 24.10%, down 4.21pct year-on-year. Among them, the gross profit margin of wireless communication module in 2021 was 24.51%, a year-on-year decrease of 4.08pct. We believe that the main reason is that the supply chain in 2021 continues to face the pressure of shortage and price rise due to the continuous epidemic and upstream supply. From the expense side, the company’s expense control effect is good. The three expense rates of sales / management / Finance in 2021 are lower than that in 2020. Among them, the exchange loss decreased significantly year-on-year, and the financial expenses decreased significantly. We believe that with the continuous improvement of the company’s expense control, the company’s profitability is expected to recover after the pressure on the cost side is relieved.
The Internet of vehicles market has entered an era of growth, and the on-board business is expected to be large. According to the company’s annual report, in 2021, the company actively promoted the layout of the Internet of vehicles business. Guangtong Yuanchi, a wholly-owned subsidiary of its vehicle front loading business, had an operating revenue of 398 million yuan in 2021 and released a variety of vehicle specification modules, including ltecat4 modules, to meet the needs of product upgrading and upgrading of automobile and Tier1 manufacturers. At the same time, Guangtong Yuanchi cooperates with upstream and downstream partners of the automobile industry chain to promote 5g + v2x projects and various tests to build an intelligent automobile cockpit ecology. Based on the on-board communication module in the field of Internet of vehicles, the company also makes R & D investment in the fields of OBU on-board unit and RSU roadside unit, which is expected to meet the needs of different application projects in the whole link of Internet of vehicles. We believe that with the growth of the vehicle network market, the company’s on-board business is expected to increase in volume, driving the growth of the company’s performance.
PC and POS markets continue to maintain a leading position. As the epidemic has cultivated users’ telecommuting habits, we believe that there may be new opportunities in mature markets. At present, the penetration rate of PC cellular modules is low. Driven by the maturity of 5g infrastructure and the normalization of online office, it is expected to improve the penetration rate of modules, which will drive the rise of the company’s PC business revenue. POS machines, the company docking mobile payment high-value customers, is expected to continue to drive the company’s performance growth.
Profit forecast, valuation and rating: we maintain the forecast of the company’s net profit of 589 / 736 million yuan from 2022 to 2023, and the forecast of the net profit of the new company in 2024 is 912 million yuan, corresponding to pe26 / 21 / 17x. We believe that the company is a high growth target in the high boom track of the Internet of things. The company’s performance in the next three years can be expected to increase, its profitability is expected to improve, and maintain the “buy” rating.
Risk tip: the penetration rate of cellular modules in downstream industries is lower than expected; The gross profit margin of module products fell; The risk of intensified market competition.
