\u3000\u3 China Vanke Co.Ltd(000002) 881 Meig Smart Technology Co.Ltd(002881) )
Announcement summary: the company released the performance express in 2021, realizing an operating revenue of 1.969 billion yuan, a year-on-year increase of 75.68%; The net profit attributable to the shareholders of the listed company was 118 million yuan, a year-on-year increase of 330.70%; After deducting non recurring profits and losses, the net profit attributable to shareholders of listed companies was 669114 million yuan, a year-on-year increase of 312.08%.
The revenue and profit reached a new high and the profitability was improved. The company's annual performance increased significantly, and its revenue and profit significantly exceeded the historical level. In a single quarter, Q4 company achieved a revenue of 648 million yuan, a year-on-year increase of 50.14%, a net profit attributable to the parent company of 386741 million yuan, a year-on-year increase of 155.78%, a Q4 net interest rate of 5.96%, a month on month increase of 0.81pct, and the company's profitability continued to improve. The company's performance growth is mainly due to the sharp increase in product shipments and the high proportion of intelligent and customized products with strong premium ability. According to counter point data, the company ranks third with 6.6% market share in the revenue structure of global module suppliers in 2021q4. The company adheres to the two core product strategies of wireless communication module and Internet of things solution. In terms of communication module, the application industry and customer group of intelligent module continue to expand. 5g intelligent module realizes mass delivery in the field of intelligent cockpit of new energy vehicles. The product sequence of standard data transmission module continues to be enriched. At present, it covers 5g, 4G LTE, 4G CAT1, Nb IOT, WiFi and other types. The shipment volume of products of various systems continues to increase, In terms of Internet of things solutions, we have continuously strengthened the expansion in the three fields of intelligent Internet connected vehicles, FWA and Internet of things pan connection, and continued to extend to new large particle markets such as PC. In terms of profitability, the company's annual net profit margin was 6%, with a year-on-year increase of 3.55pct. On the one hand, the company responded to the impact of shortage and price increase of raw materials by strengthening strategic goods preparation, price transmission, cost reduction and efficiency enhancement of the supply chain, and improving the shipment demand of high gross profit products, so as to reduce the decline of gross profit margin. On the other hand, with the expansion of revenue, the scale effect gradually appeared, the expense rate decreased, and the profitability of products was continuously guaranteed and improved.
Intelligent modules have obvious advantages, increase R & D investment and enhance competitiveness. Compared with the traditional data transmission module, the intelligent module has three characteristics: cellular communication connection, customized Android operating system and computing power, so that the terminal equipment can realize intelligent networking. With the depth and breadth of 5g and aiot technology promoting the application of animal networking, the overall penetration rate of intelligent module in the Internet of things industry continues to rise. The company is deeply engaged in intelligent module products. The shipment of 4G intelligent modules ranks in the forefront of the industry and is the first to launch 5g intelligent modules in the industry. It has leading customized development technologies such as 5g communication, Android system in-depth customization, code scanning recognition and AI algorithm support for core fields such as new retail, financial payment and intelligent Internet connected vehicles. The company designed the first 4G intelligent module slm753 in 2014 and launched the first generation of intelligent module slm758 supporting 0.2-0.5t computing power in 2017. At present, it has gone through three generations of product evolution and formed a matrix product combination from 0.2T to 27t. In September 2021, the company won the exclusive bid for China United Network Communications Limited(600050) 5g aiot intelligent module project, reflecting the company's leading position in the intelligent module industry. The company cooperated deeply with Huawei and Qualcomm to continuously improve its R & D strength. According to the announcement, the R & D cost in 2021 was about 170 million yuan, a year-on-year increase of 20.53%. During the reporting period, the company issued a fixed increase plan, which plans to raise 604 million yuan for 5g + aiot module and solution industrialization projects and R & D center construction projects, realize the upgrading of the company's products to 5g and the R & D and application of 5g millimeter wave technology, strengthen the traditional applications such as downstream new retail, logistics scanning and sharing, and focus on expanding new fields such as intelligent network connected vehicles, industrial interconnection, FWA and PC, so as to enhance the competitiveness of the company, At present, the fixed increase has been approved by the CSRC.
The demand for on-board and FWA terminals is expanding, and the large-scale products drive the growth of performance. Vehicle mounted communication module is an important underlying hardware for vehicle access to the Internet of vehicles. With the iteration of communication technology and the development of vehicle intelligence, the increment space of vehicle mounted module industry is broad. According to zoth automotive research data, the global loading capacity of vehicle wireless communication module will reach 200 million pieces in 2025, CAGR will reach 19% in 20202025, of which 5g assembly rate is about 35%. At present, the company has a complete vehicle module product line covering technologies such as 5g, c-v2x, WiFi 6 and high-precision GNSS positioning. It works closely with leading chip manufacturers such as Qualcomm to ensure the cutting-edge advantages of product technology. Intelligent module products are widely used in the field of intelligent cockpit, ADAS / DMS and other auxiliary driving. Among them, 5g products have been mass produced and shipped to China's leading new energy vehicle enterprises and applied to intelligent cockpit system. On board customers have covered vehicle manufacturers, Tier1 and afterloading customers, and continue to develop local independent brand car enterprises and core Tier1, so as to enrich customer resources. With the development trend of intelligent cockpit one core multi screen and multi-channel camera access, the company's on-board intelligent module products will continue to be in large quantities. At present, more than 120 countries around the world have deployed 4G solutions. Affected by the epidemic, the promotion of 5g network construction and the limited optical fiber layout overseas, 5g FWA has a strong demand, covering many application scenarios such as rural areas, cities, hospitals and enterprises. According to the prediction of mobile experts, in 2026, the global 5g FWA users will exceed 66.5 million, the proportion of 5g FWA connection will increase to 35%, and the CAGR will exceed 70%. Seizing the demand for 4G to 5g switching in overseas markets, and taking advantage of the technology and product development experience accumulated in previous years of cooperation with Huawei, the company has formed a rich FWA product series. It continues to deliver goods in North America and Japan. At the beginning of 2021, the company established a sales and technical support team to expand the European market, and has obtained relevant projects and orders, which are progressing smoothly.
Investment suggestion: Meig Smart Technology Co.Ltd(002881) is a rapidly rising leader in intelligent modules of the Internet of things, forming a complete product series of intelligent modules. With the continuous expansion of data transmission module products, it has certain differentiation advantages. We believe that intelligent modules have great application space in the future and are optimistic about the company's business layout in the field of intelligent network connected vehicles and FWA. We expect the net profit of the company from 2021 to 2023 to be 118 million / 202 million / 311 million respectively, and EPS to be 0.64 yuan / 1.09 yuan / 1.69 yuan respectively, maintaining the "buy" rating.
Risk warning: industry competition intensifies the risk; The development of Internet of things is less than expected risk; Upstream chip shortage risk; The public data used in the research report may have the risk of information lag or untimely update.
