\u3000\u3 China Vanke Co.Ltd(000002) 230 Iflytek Co.Ltd(002230) )
Event: on April 11, 2022, the company issued a voluntary information disclosure announcement on its operation. In 2021, the revenue exceeded 18.3 billion yuan, with a year-on-year increase of 40.61%. The net profit attributable to the parent company was 1.556 billion yuan, a year-on-year increase of 14.13%, and the non net profit deducted was 979 million yuan, a year-on-year increase of 27.54%; In Q1 2022, the revenue was 3.506 billion yuan, a year-on-year increase of 40.18%, the net profit attributable to the parent company was 110 million yuan, a year-on-year decrease of 21.34%, and the non net profit deducted was 145 million yuan, a year-on-year increase of 36.71%.
The financial indicators are high-quality and stable, and the annual growth rate of revenue has exceeded 25% for 10 consecutive years. As the only A-share listed company with an annual revenue growth rate of more than 25% for 10 consecutive years, the company continues to expand strategic investment and personnel reserve. In 2021, the company increased R & D expenses by 628 million yuan, with a total R & D expenses of 2.839 billion yuan, a year-on-year increase of 28.43%; The new sales expense was 602 million yuan, and the total sales expense was 2.686 billion yuan, a year-on-year increase of 28.9%, and 3301 personnel reserves were increased. Under the high investment, the net profit attributable to the parent company was still 1.556 billion yuan, a year-on-year increase of 14.13%, deducting 979 million yuan of non net profit, a year-on-year increase of 27.54%. At the same time, the net profit attributable to the parent company in Q1 decreased in 2022, which was due to the recognized profit and loss of RMB – 154 million due to changes in fair value caused by changes in stock prices of Cambricon Technologies Corporation Limited(688256) , Three’S Company Media Group Co.Ltd(605168) and other companies. Excluding relevant factors, the non net profit deducted was RMB 145 million, a year-on-year increase of 36.71%.
Adhere to the strategic policy of “standing up to the sky”. In 2021, the company continued to lead the progress of artificial intelligence technology and won honors in many competitions. The company won 11 titles in international important competitions in the key core technology field of artificial intelligence:
1) won 22 first places in 15 languages in the global multilingual competition held by NIST;
2) participate in cityscapes competition for the third time and brush Shanghai New World Co.Ltd(600628) record;
3) the international oral machine translation evaluation competition won three track titles;
4) won the first educational cognition challenge held by nips;
5) the achievements related to China Patent Gold Award, the highest award in the field of intellectual property in China, further strengthened the company’s technical barriers and leading advantages in many fields, and continuously built the underlying ability of systematic innovation for the company’s long-term development.
Build six “base business” and return to the root of value creation. The company constructs six “base business” with education, consumers, medical treatment, automobile, smart city and operator network. The group’s strategic policy continues to expand the scale of application. As of December 31, 2021, “base business” accounted for more than 50% of the company’s total revenue. The number of developers gathered on iFLYTEK’s open platform reached 2.93 million and the number of platform applications exceeded 1.37 million. Form a company centered industrial ecology and continue to build, so as to further consolidate the company’s position in the national team of artificial intelligence.
Investment suggestion: as a leading enterprise of artificial intelligence in China, the company has achieved full coverage of AI industry chain in more than 20 years. In the era of artificial intelligence 2.0, the company innovatively put forward the strategic policy of “indomitable” and continued to obtain large orders with “base business”. At the same time, through the scenario application of its own core technology, it took the lead in launching a number of AI technologies and platforms in the industry. It is estimated that the EPS from 2021 to 2023 will be 0.68 yuan, 0.84 yuan and 1.02 yuan respectively. The current market value corresponds to 63x / 51x PE in 21 / 22 years, maintaining the “recommended” rating.
Risk tip: the landing of new business is less than expected, the competition in AI industry intensifies, and the repeated epidemic brings delivery risks.
