\u3000\u3 China Vanke Co.Ltd(000002) 881 Meig Smart Technology Co.Ltd(002881) )
Event: on April 7, 2022, the company released the annual performance express of 2021. In 2021, the company realized an operating revenue of 1.969 billion yuan, a year-on-year increase of 75.78%; The net profit attributable to the parent company was 118 million yuan, a year-on-year increase of 330.70%; The net profit attributable to the parent company after non deduction was 67 million yuan, a year-on-year increase of 312.08%.
Comments:
Deepen and expand the three fields of intelligent module + data transmission module + solution, and improve the operating efficiency
According to the announcement, the operating efficiency of the company continued to improve in 2021. On the one hand, the product shipments increased significantly, on the other hand, the scale of revenue increased rapidly. The company adheres to the two core product strategies of wireless communication module and Internet of things solution. The specific business points are as follows: 1) intelligent module: from the perspective of industry, the overall penetration rate of intelligent module products in the Internet of things industry continues to rise. From the perspective of the company, the company’s intelligent module products have strong design and R & D ability, vertical industry customized development ability, and the application industry and customer group continue to expand; 2) Data transmission module: the product structure of the company’s data transmission module is comprehensively improved, and the shipment volume of products of all systems has increased significantly; 3) Internet of things solutions: the breadth and depth of expansion in the three major fields of intelligent network connected vehicles, FWA (fixed wireless access) and Internet of things pan connection have been continuously strengthened, and continue to expand to the new large particle market.
In the short term, the company’s intelligent and customized capabilities have started, and the revenue growth is expected to maintain
In the short term, the company’s intelligent and customized service capabilities have formed a characteristic brand effect, with a significant increase in shipments, superimposed with the resulting product premium, and the revenue is expected to maintain a high growth trend. Specifically, on the one hand, the company is characterized by intelligence and customization, which promotes product premium and significantly improves the shipment volume, among which 5g and on-board products grow rapidly; On the other hand, with the expansion of the scale of revenue, the rate of various expenses of the company has decreased, and the scale effect of expenses has gradually appeared. It is expected that the growth rate of revenue of the company will maintain a high level in the short term.
In the medium and long term, the company is deeply engaged in the field of intelligent modules, cooperates closely with Qualcomm and maintains a leading position in the industry
The company started the field of intelligent modules earlier and launched 5g intelligent modules for the first time in the industry. At present, it has formed a complete product series of intelligent modules and accumulated rich R & D technology and industry know-how in the field of intelligent modules. The company has long-term cooperation with Qualcomm and strong cooperation viscosity, which is conducive to the procurement and preparation of baseband chips and SOC chips. In the future, the company is expected to launch higher-performance intelligent module products under the condition of in-depth cooperation with Qualcomm, take the lead in seizing development opportunities and enjoying industry dividends under the background of accelerated development of the Internet of things and accelerated penetration of intelligence.
FWA intelligent terminal originates from Huawei, with strong R & D strength and wide development space in the future
Based on module technology, the company has formed a rich series of FWA terminal products. The company has cooperated with Huawei for a long time. It started cooperation with Huawei in 2014. It is a provider of Huawei CPE solutions and has accumulated rich R & D technical experience. At the same time, it also carries out cooperation in business fields such as PCBA and FWA. With Huawei’s focus on pure soft, the company, as Huawei’s in-depth partner, has natural advantages in acquiring 5gcpe market share and strong certainty in its future development.
Launch vehicle modules and terminals, and open a new growth curve for vehicle business
The company actively arranges the on-board business line, develops vehicle specification level modules and on-board terminals, provides intelligent on-board solutions, and deeply arranges the whole industrial chain of intelligent networked vehicles. At present, the company has reached cooperation with China’s mainstream car manufacturers, actively explore new forces in car manufacturing, and continuously expand on-board business customers. In the future, the intelligent Internet connected car business will open a new growth curve for the company.
Profit forecast and investment rating
The company deeply cultivates “intelligent module + connected vehicle + FWA” and other tracks, attaches importance to R & D investment, and has a deep industry know-how. In the future, it is expected to continue to benefit from the development dividends of 5g and the Internet of things industry, and is optimistic about the long-term development space. It is estimated that the net profit of the company from 2022 to 2023 will be 208 million yuan and 288 million yuan respectively, and the corresponding PE of the current stock price will be 29.90 times and 21.59 times respectively, maintaining the “buy” rating.
Risk factors
The development of the Internet of things industry was not as expected, the intensified competition in the Internet of things industry triggered a price war, and the covid-19 epidemic spread repeatedly
