\u3000\u30 Chongqing Baiya Sanitary Products Co.Ltd(003006) 38 Fibocom Wireless Inc(300638) )
The performance is in line with expectations and continues to maintain rapid growth. The company released the annual report of 2021. In 2021, the total revenue was 4.109 billion yuan, a year-on-year increase of 50%, and the net profit attributable to the parent was 400 million yuan, a year-on-year increase of 42%. Among them, the revenue in the fourth quarter was 1.256 billion yuan, a year-on-year increase of 62%, and the net profit attributable to the parent company was 78 million yuan, a year-on-year increase of 31%.
The gross profit rate fluctuated slightly and the operating condition continued to improve. Affected by the price rise of raw materials, exchange rate fluctuations and product structure adjustment, the annual gross profit margin was 24.1%, down about 4.2 percentage points compared with the same period of 20 years. The gross profit margins of Q1 / Q2 / Q3 / Q4 in 2021 were 25.11/25.89/25.05/21.25% respectively. The expense side also contracted to a certain extent. The annual net interest rate in 2021 decreased by 0.6 percentage points compared with the same period last year. The overall cost rate has shrunk to a certain extent, and the operation quality has continued to improve.
The industry has enjoyed high growth and the leaders have continued to benefit. According to counterpoint, the global shipments of cellular IOT modules increased by about 60% year-on-year in 2021. Among them, the global cellular Internet of things module market revenue in 2021q4 increased by 58% year-on-year. CR10 accounts for 75.8% of the global market share, and the share of Chinese manufacturers continues to increase. As one of the leading manufacturers of global cellular Internet of things modules, the company is expected to continue to expand its advantages and increase continuously.
From the perspective of the future development of the industry, with the further growth of the number of Internet of things connections, the sales volume of cellular Internet of things modules is expected to further increase, and the industry concentration is expected to continue to focus to the head.
Profit forecast and Valuation: with the continuous outbreak of the Internet of things industry, the demand of the whole cellular module industry is rising. The company is a leading manufacturer in the industry. Stable operation, good sustainability of income growth, high efficiency of internal management and continuous improvement of development. We expect the company’s net profit attributable to the parent company from 2022 to 2024 to be RMB 590 / 780 / 970 million, corresponding to 27 / 20 / 16 times of the current share price PE respectively, maintaining the “buy” rating.
Risk tip: the development of PC module market is less than expected, and the penetration of Internet of vehicles is less than expected.
