\u3000\u3 China Vanke Co.Ltd(000002) 230 Iflytek Co.Ltd(002230) )
Core view
Event: on April 11, 2022, Iflytek Co.Ltd(002230) released the main operating conditions of 2021 and the first quarter of 2022. In 2021, the company achieved an operating revenue of more than 18.3 billion yuan, 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%. In 2022q1, the company achieved an operating 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%.
Comments:
Revenue continued to grow at a high rate, and the application scale of "base business" continued to expand. In 2021, the company achieved an annual operating revenue of more than 18.3 billion yuan, a year-on-year increase of 40.61%. The implementation and application scale of the company's "base business" continues to expand, and the "base business" accounts for more than 50% of the company's total revenue. By the end of 2021, the number of developers gathered on iFLYTEK's open platform had reached 2.93 million, and the number of platform applications had exceeded 1.37 million. At the same time, the company increased R & D investment and personnel reserve. In 2021, the total R & D expenses of the company reached 2.839 billion yuan, an increase of 28.43% over the same period last year, and the total sales expenses reached 2.686 billion yuan, an increase of 28.9% over the same period last year, increasing the personnel reserve by 3301 people. The net profit attributable to the parent company was 1.556 billion yuan, a year-on-year increase of 14.13%, and the net profit deducted was 979 million yuan, a year-on-year increase of 27.54%.
Cambricon Technologies Corporation Limited(688256) and other stock price changes affect Q1 net profit. In the first quarter of 2022, the company maintained high-quality growth in track businesses in many industries, achieving an operating revenue of 3.506 billion yuan, a year-on-year increase of 40.18%, and a net profit attributable to the parent company of 110 million yuan, a year-on-year decrease of 21.34%, mainly due to Cambricon Technologies Corporation Limited(688256) , Three'S Company Media Group Co.Ltd(605168) and other changes in fair value caused by changes in share price, resulting in recognized profit and loss of - 154 million yuan; The net profit deducted from non parent company was 145 million yuan, with a year-on-year increase of 36.71%, and continued to maintain the high growth trend of business.
Technological breakthroughs have been made in the field of artificial intelligence. In 2021, the company won 22 first places in 15 languages in the global multilingual competition held by NIST; Participate in cityscapes competition for the third time and brush Shanghai New World Co.Ltd(600628) record; The 2021 international oral machine translation evaluation competition won three track titles. The company is a leader in the field of artificial intelligence in China, with obvious technical advantages and leading advantages. The track of education, medical treatment and consumption is in the period of large-scale application, and the rapid growth of business is expected to continue.
Investment suggestion: according to the announcement and adjustment of the performance forecast for 21 years, it is estimated that the operating revenue of the company from 2021 to 2023 will be 18.313 billion yuan, 23.942 billion yuan and 30.787 billion yuan respectively, the net profit attributable to the parent company will be 1.556 billion yuan, 2.229 billion yuan and 2.884 billion yuan respectively, and the EPS will be 0.67, 0.96 and 1.24 yuan / share respectively. Maintain the "buy" rating.
Risk warning: technological innovation is not as expected; The downstream market demand is lower than expected; The risk of intensified industry competition.
