\u3000\u3 China Vanke Co.Ltd(000002) 881 Meig Smart Technology Co.Ltd(002881) )
Event:
The company released the performance express of 2021, and achieved an operating revenue of 1.969 billion yuan in 2021, with a year-on-year increase of 75.68%; The net profit attributable to the parent company was 118 million yuan, a year-on-year increase of 330.70%; Deduct non net profit of 669114 million yuan, with a year-on-year increase of 312.08%.
Our comments are as follows:
1. Customer recognition + in-depth layout of the field, and grasp the opportunities of the Internet of things industry
The company’s revenue increased significantly year-on-year. The annual operating revenue growth rate was as high as 75.68%. At the same time, the revenue in the fourth quarter hit a record high of 648 million yuan in a single quarter, an increase of 50.14% compared with the same period last year. Taking intelligent modules as the cornerstone, the company expanded its application industry and customer base. At the same time, it continued to improve the product structure of data transmission modules, and the shipment volume increased significantly. The market recognition of the company’s wireless communication module + solution business model continues to improve, and the scale of global customers continues to expand. The products of Internet of things solutions are laid out in depth in the fields of intelligent Internet connected vehicles, FWA (fixed wireless access) and Internet of things pan connectivity, and continue to expand in other large particle scenes. In addition, the company has deepened the development of 4G / 5G modules and deepened the R & D and application of products in the vehicle field. In 2021, 5g and vehicle products will blossom and bear fruit, and the growth rate of 5g and vehicle products will be rapid.
2. Scale effect + cost reduction and efficiency increase of supply chain, and profitability improvement
The profitability of the company was significantly improved, and the annual net profit attributable to the parent company was 118 million yuan, and the net interest rate was increased to 6.0%. In 2021, the scale effect of the company will gradually appear, and through comprehensive measures such as strengthening strategic goods preparation, price transmission, reducing cost and increasing efficiency of the supply chain and improving the shipment demand of high gross profit products, the company will deal with the impact of shortage and price rise of raw materials and continuously ensure and improve the profitability of products. At the same time, the company’s flagship product intelligent module has a high degree of intelligence and customization, and has strong bargaining power.
3. Technological advantages enable development, customer resources provide growth momentum, continue to expand the market, and high growth can be expected. On the whole:
1) at present, the company has become one of the leading manufacturers in the industry. The shipment volume of 4G intelligent modules of the company ranks in the forefront of the industry, and it is the first to launch 5g intelligent modules in the industry. At present, it has formed a complete product series of intelligent modules and has strong technology leadership. At the same time, 2021q4 has ranked third in the world in terms of the revenue share of global IOT module suppliers, ranking in the forefront of the industry and has scale effect;
2) the company’s leading customized development technology has formed large-scale applications in the core areas of the Internet of things such as new retail, intelligent Internet connected vehicles and 5gfwa, and has established a relatively deep industry accumulation;
3) after years of business development, the company has accumulated a number of high-quality customer resources represented by overseas leading brands, operators and listed companies. On this basis, the company continues to deepen cooperation with existing customers and expand the scope of customer groups. The company’s market foundation continues to develop steadily, especially the rapid development of overseas markets, which provides sufficient momentum for the long-term and stable development of the company. With its own technological leadership and continuous expansion of the market and customers, the company is expected to make continuous breakthroughs in its future development.
Profit forecast and investment suggestions:
In the short term, the Internet of things industry continues to develop with high prosperity, and the company’s intelligent module continues to break through the application field, which is expected to achieve large-scale growth and significantly improve its performance; In the medium and long term, the company absorbs Huawei’s technology and development capabilities, complements the market and channel weaknesses, and continues to expand its layout in many fields. It is expected to expand rapidly in smart grid, operator FWA terminals, on-board products, Siasun Robot&Automation Co.Ltd(300024) and other new science and technology fields. The rapid growth of products in various fields is expected, or will fully benefit from the vigorous development of the Internet of things. Considering the cost pressure of upstream chips and raw materials, the net profit attributable to the parent company in 22-23 years was adjusted to 205 million yuan and 312 million yuan, corresponding to 30 times of P / E in 22 years and 20 times of P / E in 23 years, maintaining the rating of “overweight”.
Risk tip: the risk of continuous growth of upstream raw material cost, the risk of less than expected customer development, the risk of fierce market competition, the risk of new product development slower than the market, and the performance express are the preliminary calculation results. The specific financial data are subject to the annual report disclosed by the company
