Talk every Monday:
Recently, Huawei released its annual report for 2021. The overall operation in 2021 was stable. The operating revenue was 636.8 billion yuan, a year-on-year decrease of 28.6%; The net profit was 113.7 billion yuan, a year-on-year increase of 75.9%; Operating cash flow was 59.7 billion yuan, a year-on-year increase of 69.4%.
The pressure on the company’s revenue is mainly due to the sanctions imposed by the United States, which has a great impact on the consumer business.
The company’s net profit increased significantly, including the net income recognized from the sale of glory and hyperfusion (x86 server) assets in the reporting period, totaling 57.4 billion yuan. The business proportion of operators returned to the first, and the business revenue in China accounted for more than 60%.
The business revenue of the company’s operators reached 281469 billion yuan, a year-on-year decrease of 7%. According to Dell’Oro, Huawei accounted for 28.7% of the global communication equipment market in 2021, ranking first.
The revenue of government and enterprise business reached RMB 10.444 billion, a year-on-year increase of 2.1%. By the end of 2021, Huawei had created more than 100 scenario based solutions covering more than 10 industries.
The revenue of consumer business reached 243431 billion yuan, a year-on-year decrease of 49.6%. By the end of 2021, there were more than 220 million Huawei devices equipped with harmonyos, and the global monthly live users of Huawei terminals exceeded 730 million.
The business in China accounted for 64.9% and achieved an operating revenue of 413299 billion yuan, a year-on-year decrease of 30.9%. The company continues to invest in R & D, and the proportion of R & D continues to increase.
In 2021, Huawei’s R & D expenses amounted to 142.7 billion yuan, accounting for 22.4% of sales revenue, and the R & D expense rate increased by 6.5 percentage points. The amount and rate of R & D expenses are at the highest level in recent ten years.
At present, Huawei’s R & D investment ranks second among global enterprises, second only to Google’s parent company alphabet. In 2021, there were about 107000 people engaged in research and development, accounting for 54.8% of the total number of the company. near
Huawei is one of the largest patentees in the world. By the end of 2021, Huawei had held more than 45000 families (more than 110000) of valid authorized patents worldwide.
The business structure of the company has changed, and Hisilicon has become a first-class department. We believe that Hisilicon has officially become an independent first-class department, which highlights that Huawei attaches great importance to Hisilicon and the company continues to increase its strategic layout in the chip field.
The company’s personnel changed, and Meng Wanzhou succeeded Guo Ping as the rotating chairman. At the same time, five Huawei executives left the board of directors to enter the board of supervisors, and two alternate directors became full-time.
Market review:
This week (202203.28202204.01), the Shanghai Composite Index, Shenzhen Component Index and gem index increased by 2.19%, 1.29% and 1.10% respectively, and the Shenwan communication index increased by – 0.96%, ranking 24th in Shenwan’s 28 primary industries.
Performance of individual stocks in the communication sector this week:
The top five stock price increases are: Chutian Dragon Co.Ltd(003040) , Fujian Start Group Co.Ltd(600734) , Hangzhou Freely Communication Co.Ltd(603602) , Hengbao Co.Ltd(002104) , Beijing Tongtech Co.Ltd(300379)
The top five stock price declines are: Super Telecom Co.Ltd(603322) , Shenzhen Kexin Communication Technologies Co.Ltd(300565) , Kyland Technology Co.Ltd(300353) , Zjbc Information Technology Co.Ltd(000889) , Zhejiang Zhaolong Interconnect Technology Co.Limited(300913)
Investment strategy: (1) 5g network coverage continues to improve, the number of 5g base stations exceeds 1.4 million, and the leading 5g equipment manufacturer is continuously recommended: Zte Corporation(000063) ; (2) The increase in the penetration rate of 5g package users drives the Arup value of operators. Operators give up the price war and improve user stickiness by providing more high-quality and differentiated services. It is suggested to pay attention to: China Mobile; (3) The development of the Internet of things industry has entered the fast lane, focusing on the investment opportunities of vehicle communication modules. It is suggested to pay attention to Fibocom Wireless Inc(300638) , Quectel Wireless Solutions Co.Ltd(603236) ; (4) In the context of double carbon, green energy conservation has become the main theme. The key recommendation is precision temperature control faucet: Shenzhen Envicool Technology Co.Ltd(002837) .
Risk tip: the development of 5g is not as expected, the trade friction between China and the United States has further escalated, and the epidemic has further spread.
