\u3000\u3 China Vanke Co.Ltd(000002) 414 Wuhan Guide Infrared Co.Ltd(002414) )
Core view
Event: Recently, the company released the annual report for 2021 and the performance forecast for the first quarter of 2022. In 2021, the company achieved an operating revenue of RMB 3.500 billion, a year-on-year increase of 4.98%, and the net profit attributable to the parent company was RMB 1.111 billion, a year-on-year increase of 11.00%. The net profit attributable to the parent company in the first quarter of 2022 is expected to be 310358 million yuan, with a year-on-year increase of 30% - 50%.
The sales volume of infrared thermal imager for human body temperature measurement decreased significantly year-on-year, and other businesses increased steadily. The epidemic situation was well controlled in 2021, and the demand for infrared thermal imagers for human body temperature measurement decreased significantly, resulting in a 30% decrease in the production and inventory of the company's infrared thermal imagers and integrated photoelectric systems compared with the same period of last year. The company's infrared detector chips, model products and non epidemic prevention civil products have maintained a continuous growth trend, making up for some gaps in the field of human body temperature measurement. The business revenue of infrared thermal imager finally recorded 2.615 billion yuan, a decrease of 9.40% compared with 2020. The business orders of traditional ammunition and information ammunition increased significantly, realizing an operating revenue of 803 million yuan, a year-on-year increase of 88.01%.
The revenue of ammunition business with low gross profit margin increased significantly, resulting in a decline in the overall gross profit margin. The gross profit margin of the company was 55.93%, a year-on-year decrease of 3.27pct. The business of traditional ammunition and information ammunition grew rapidly, accounting for 22.94% of the revenue, with a year-on-year increase of 10.13pct and a gross profit margin of 26.74%, with a year-on-year decrease of 3.73pct. Due to the relatively low gross profit margin of ammunition business, the proportion of revenue increased significantly year-on-year, resulting in a slight decrease in the overall gross profit margin of the company. The gross profit margin of infrared thermal imager was 64.90%, with a year-on-year increase of 1.05 PCT, mainly due to the increase in the sales proportion of high-value model products and detector chips.
The cost rate decreased significantly during the period. The company's expense rate during the period was 19.06%, with a year-on-year decrease of 3.19pct. The sales expense ratio was 2.5%, with a year-on-year decrease of 0.87pct, which was mainly due to the decrease of agency fees for overseas customers affected by the international environment. The year-on-year increase of 920.02% was mainly due to the increase of the company's labor structure. The financial expense ratio was - 0.11%, a year-on-year decrease of 0.16pct, mainly due to the increase in interest income caused by the purchase of large certificates of deposit. The R & D expense rate was 10.60%, with a year-on-year decrease of 3.07 PCT, mainly due to the one-time expense of the early-stage costs of 502B and tn-2 projects in the previous year, which was not the case this year.
Inventory and contract liabilities increased significantly, and new large orders were signed. The company's inventory was 1.656 billion yuan, a year-on-year increase of 14.61%; Contract liabilities amounted to 662 million yuan, with a year-on-year increase of 185.20%, indicating that the company has sufficient orders on hand. With its profound technical strength, the company has maintained a high bid winning rate in the bidding projects. In the field of optoelectronic integrated system, the company participated in the bidding of a certain type of airborne optoelectronic pod project for the first time, that is, it won the first place and the second place respectively; In the overall field of complete equipment system, the company won a key project with the first place. In March 2022, the company announced that a new equipment model order contract was signed, with an amount of 269 million yuan, accounting for 7.69% of the revenue in 2021. With the subsequent batch production of bidding projects and the delivery of newly signed contracts, the company's future performance is expected to continue to grow.
Investment suggestion: the company's non epidemic prevention civil products business such as security, industry and UAV load continues to maintain a high-speed growth trend, with sufficient orders for model products and complete weapons and equipment. The completion and operation of Handan electromechanical new initiating explosive work zone will further release the ammunition production capacity. We predict that the company's net profits from 2022 to 2024 will be 1.423 billion yuan, 1.768 billion yuan and 2.112 billion yuan respectively, and the corresponding PE will be 27.9, 22.5 and 18.8 respectively. For the first time, give a "overweight" rating.
Risk tip: the delivery of model products and complete weapons and equipment is less than expected, and the prices of traditional ammunition and information ammunition have fallen sharply.
