\u3000\u3 China Vanke Co.Ltd(000002) 373 China Transinfo Technology Co.Ltd(002373) )
Key investment points
Event: the company released its annual report for 2021. The company achieved a total operating revenue of 10.28 billion yuan, a year-on-year increase of 9.2%; The net profit attributable to the parent company was 720 million yuan, a year-on-year decrease of 33.0%, which was mainly due to the decline of the fair value of Hangzhou Hopechart Iot Technology Co.Ltd(688288) due to market fluctuations and the increase of superimposed sales and R & D investment.
Smart transportation has developed steadily, and the advantages of cloud edge end integration are prominent. During the reporting period, the company's intelligent transportation business (excluding the contribution of video products from subsidiaries) achieved a total operating revenue of 4.23 billion yuan. If the impact of etc products and the demolition of provincial toll stations is deducted, the revenue increased by 19.5% year-on-year and maintained a stable growth trend. 1) In terms of urban transportation, the company continued to promote the business architecture of "cloud edge end" integration and coordination, achieved good results in the implementation of omni-t global transportation solution, and significantly improved the management and control efficiency of multiple projects. 2) In terms of intercity transportation, the highway informatization and digital upgrading business has developed steadily, and the smart road network business has helped the industrial reform and realized its application in many places. 3) In terms of vehicle road coordination, we have deployed road test sensing and communication equipment as needed, completed the implementation of multiple projects, led the construction of multiple automatic driving demonstration areas, and the benchmarking effect is gradually emerging.
The rapid development of intelligent IOT and the continuous development of domestic and foreign markets. During the reporting period, the company actively faced the challenges of chip supply shortage and repeated epidemics. The revenue of intelligent IOT business was 6.07 billion yuan, a year-on-year increase of 15.1%.
1) Chinese market: on the one hand, closely follow the national standards, vigorously develop the customized product business market and create high-end cases in the industry; On the other hand, we fully implemented the sinking strategy of prefectures and cities, strengthened the business expansion of standard products, set up more than 80 secondary offices, reorganized the product matrix, and created a people-friendly brand "Ayu", maintaining the leading market share. 2) Overseas market: the company achieved overseas revenue of 2.02 billion yuan, a year-on-year increase of 27.9%, and the proportion of revenue increased to 19.7%. At the same time, it completed the establishment of multiple branches, further improved the overseas channel network, and effectively improved the brand influence.
Artificial intelligence has accumulated a lot and made a precise breakthrough in automotive electronics. 1) Artificial intelligence: boguan intelligence, a subsidiary, has made full efforts to realize large-scale expansion while enabling the high-quality development of internal intelligent IOT and intelligent transportation business. It has achieved in-depth cooperation and phased breakthroughs with well-known enterprises in the fields of smart power plant, smart coal mine and intelligent manufacturing, which is expected to become a new growth point of the company's business. 2) Automotive electronics: by investing in Lianlu intelligence, the company has opened up a complete closed loop of "road networking" and "vehicle end networking". During the reporting period, the company launched etc OBU conforming to AUTOSAR standard, which has been supplied to the head vehicle factory in batch; Launch a new generation of intelligent entry products based on UWB, continue research and development, and explore the application expansion of UWB in living detection, short-range radar mode and other scenes; Hundreds of thousands of pre installed 4G T-box products have been successfully delivered, and 5gv box module scheme has been jointly developed with Continental group. On this basis, independent upgrading has been carried out. Two fixed-point projects have been obtained and mass production is planned to start in 2022. The subsequent synergy with Continental group is worth looking forward to.
Profit forecast and investment suggestions. It is estimated that the compound growth rate of net profit attributable to parent company from 2022 to 2024 will be 29.7%. The company has benefited from the digital transformation of the transportation industry, and the intelligent transportation business has maintained stable growth. The follow-up orders are expected to show a slow and then fast growth trend with the planning and implementation of infrastructure projects; The market development of intelligent IOT business at home and abroad is smooth, while the artificial intelligence business is booming, which further enables intelligent transportation and intelligent IOT business to realize the implementation of projects in multiple fields and open up new growth space. In addition, the profit side of the company in 2021 is temporarily under pressure due to the impact of non recurring profits and losses, the subsequent disturbance of supply chain and raw material prices is expected to slow down, the gross profit margin may rise gradually, and the profit elasticity is worth looking forward to. Overall, the company will be given 22 times PE in 2022, corresponding to the target price of 13.42 yuan. It will be covered for the first time and given a "buy" rating.
Risk warning: the promotion speed of intelligent transportation project is lower than expected; The competition of intelligent IOT industry is intensified; Rising prices of raw materials, etc.
