\u3000\u3 China Vanke Co.Ltd(000002) 230 Iflytek Co.Ltd(002230) )
Continued high growth in the first quarter and maintained the “buy” rating
According to the operating data released by the company, the growth rate of Q1 revenue in 2021 and 2022 was 40.61% and 40.18% respectively, with high growth in the first quarter. Considering the impact of changes in fair value on profits, we lowered our forecast. It is estimated that the net profit attributable to the parent company from 2021 to 2023 will be RMB 1.556, 2.036 and 2.708 billion (formerly RMB 1.767, 2.238 and 2.963 billion), EPS will be RMB 0.67, 0.88 and 1.17 (formerly RMB 0.77, 0.97 and 1.29), and the current share price corresponding to PE will be 63.6, 48.6 and 36.6 times. The company has entered the development harvest period and maintained the “buy” rating.
Event: the company released the operating data for the first quarter of 2021 and 2022
(1) in 2021, the company achieved revenue of 18.314 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%; The net profit deducted from non parent company was 979 million yuan, with a year-on-year increase of 27.54%, and the revenue growth rate exceeded 25% for 10 consecutive years. The R & D and sales expenses were 2.839 billion yuan and 2.686 billion yuan respectively, with a year-on-year increase of 28.43% and 28.9% respectively, and the personnel reserve was increased by 3301. The company increased investment and personnel reserve, demonstrating its confidence in future development. (2) In the first quarter of 2022, the company achieved a revenue of 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 net profit deducted from non attributable to the parent company was 145 million yuan, a year-on-year increase of 36.71%. The decline in net profit was mainly due to the impact of – 154 million yuan of changes in fair value profit and loss caused by the fluctuation of Cambricon Technologies Corporation Limited(688256) , Three’S Company Media Group Co.Ltd(605168) and other stock prices held by the company.
The industry continued to cash dividends and its profitability continued to improve
The company continued to promote the “platform + track” strategy, started the strategic focus after entering the “ai2.0” stage, and continued to implement large-scale applications. In the field of education, the large-scale replication of teaching students according to their aptitude continued to be promoted. In the first quarter of 2022, many projects such as Wuhu in Anhui, Sanming in Fujian and Mianyang in Sichuan were launched; In terms of learning machines, according to the data of the Ministry of education, in 2020, the number of K12 students in China was about 197 million, and the penetration rate of learning machines was about 2.4%. The space was broad. In 2021, the sales volume of learning machines of the company increased by about 150%, ranking first in tmall and jd.com, and the future can be expected; In the medical field, after realizing the coverage within Anhui Province, it will continue to expand its market share outside the province, with broad growth space in the future. We believe that after the early strategic deployment, the company’s business has long-term development and profitability. In the first quarter of 2022, non-profit deduction achieved rapid growth and profitability continued to improve. The company is expected to enter the development harvest period.
Risk warning: Education orders are not as expected; The sales volume of learning machines was lower than expected.
