\u3000\u3 China Vanke Co.Ltd(000002) 230 Iflytek Co.Ltd(002230) )
Event: on April 12, the company issued the annual and 2022q1 performance express report, with operating income of RMB 18.314 billion, an increase of 40.61% in 2021, net profit attributable to parent of 1.556 billion yuan, an increase of 14.13%, deduction of net profit of 979million yuan, with a growth of 27.54%; In 2022q1, the operating revenue was 3.506 billion yuan, an increase of 40.18% and the net profit attributable to the parent company was 110 million yuan, a decrease of 21.34% and a deduction of 145 million yuan, an increase of 36.71%. The performance of the whole year of 2021 and the first quarter of 2022 exceeded market expectations.
"Base business" continues to be applied, and the high growth of Q1 revenue confirms that the prosperity of AI industry continues to be high. 1) According to the announcement, in 2021, the application scale of the company's "base business" such as education, smart medical treatment and smart city continued to expand. By the end of 2021, iFLYTEK's open platform has attracted 2.93 million people and more than 1.37 million platform applications. The industrial ecology centered on Iflytek Co.Ltd(002230) has been continuously constructed to further consolidate the position of the company's national team of artificial intelligence. 2) Driven by the "base business", the company achieved an operating revenue of 18.314 billion yuan in 2021, an increase of 40.61%, of which the "base business" accounted for more than 50%. At the same time, it has also become the only company with A-share listed companies with a revenue growth rate of more than 25% for ten consecutive years in the past decade. In 2022q1, under the pressure of epidemic situation, macroeconomic and other factors, the company's revenue side still achieved a year-on-year high growth of 40.18%, reflecting the high prosperity of the AI industry; Although the net profit attributable to the parent company was only RMB 110 million, with a decrease of 21.34%, it was mainly due to the recognition of profit and loss of RMB - 154 million due to changes in fair value caused by changes in stock prices, such as Cambricon Technologies Corporation Limited(688256) , Three'S Company Media Group Co.Ltd(605168) and so on; The net profit deducted from non parent company reached 145 million yuan, with a year-on-year increase of 36.71%, which remained stable.
The real barriers of the company come from semantics and scenes. Behind consumer goods, medical treatment and justice are semantics and scenes, which are expected to grow rapidly in the future. Deep neural network fusion end-to-end technology has greatly improved the accuracy of speech recognition. Technological iteration and innovation have promoted the speech recognition rate to a higher level than human beings. Deepening situational semantic understanding and constructing knowledge map are the key to speech recognition in the future, and also the Iflytek Co.Ltd(002230) real barrier. Consumption: behind each product, there are scenes and customer demand pain points. The 618 good news in 2021 indicates that the income of the consumer sector is expected to accelerate. Medical: Based on the medical depth model, build a knowledge map for reasoning to improve the service capacity and efficiency of grass-roots medical institutions. Justice: through graphic recognition, semantic understanding and judicial element extraction, we will help the reform of the judicial system and the construction of smart courts, and improve the quality, efficiency and credibility of justice. We believe that the continuous deepening of the above vertical industries is expected to accelerate the revenue end of each section in the future.
Maintain the "buy" rating. We estimate that the net profit attributable to the parent company from Iflytek Co.Ltd(002230) 2021 to 2023 will be 1.805 billion, 2.501 billion and 3.459 billion respectively, maintaining the "buy" rating.
Risk warning: the risk of intensified market competition; Risks of backward technology research and development and investment not meeting expectations; The risk of brain drain; The risk of increasing accounts receivable and the customer's collection not reaching the expectation.
