\u3000\u3000 Skyworth Digital Co.Ltd(000810) (000810)
1. After 20 years of deep cultivation of communication equipment, the recovery trend of main business has been established
Skyworth Digital Co.Ltd(000810) is a leading supplier of broadband network connection equipment, ultra-high definition intelligent terminal and solution provider in the industry. The company mainly serves customers of Telecom and digital TV operators outside China. Its business covers China, Europe, Africa, the Middle East, India, Southeast Asia, Latin America and other places. It is committed to creating ultra-high definition and intelligent Internet + digital life for users all over the world. Under the background of repeated global covid-19 epidemic, tight supply of chips and other raw materials and rising prices, the company benefits from the development of global broadband, optical fiber, digitization and IP. In the first three quarters of 2021, the operating revenue was 7.622 billion yuan, an increase of 28.38% over the same period of last year; The net profit attributable to the parent company was 269 million yuan, a decrease of 4.30% over the same period of last year. The main reason for the increase of revenue and the decline of net profit in the first three quarters of 2021 is that the company has accrued a total of 296625500 yuan of credit impairment loss and asset impairment loss. If this impairment loss is not considered, the net profit of the company in the first three quarters will increase compared with the same period last year. Looking forward to the future, the demand for Chinese operators to lay out smart families and develop Internet broadband operation business is growing, and broadband networks usher in opportunities for upgrading; The emerging Android TV market and traditional digital TV in overseas markets are booming, and the demand for broadband products and Internet of things layout of operators is strong, which comprehensively drives the recovery of the company’s main business.
2. VR has outstanding hard power and accurately grasp the entrance of meta universe
As the A-share target of scarce VR equipment, the company has more than 7 years of experience in the R & D of VR hardware products and industrial solutions, and has mass produced a variety of VR head mounted display equipment products. The product parameters are comparable to international giants and the price has a competitive advantage. At the same time, the company actively develops application scenarios in vertical industries and creates products and solutions for medical visits, live broadcasting in scenic spots, k12 education VR and so on. The company has accumulated in the VR field for many years and accurately grasped the entrance of the meta universe, which is expected to rise against the background of the overall recovery and rapid growth of the VR industry.
3. Forward looking layout of automotive electronics, multi screen and large-scale development of display system give birth to new opportunities
Through Shenzhen Skyworth automotive intelligence Co., Ltd., the company has laid out the field of automotive electronics and is positioned as a modular integrator of intelligent cockpit. Its main products include LCD meters, touch screens, etc. The company has a perfect qualification certification and R & D system, has in-depth cooperation with FAW Volkswagen, Chery, Geely and other car manufacturers, and has won the bid for the supply of several new models. At present, with the vigorous development of automotive intelligent cockpit, the trend of multi screen and large size of instrument and screen, driving the rise of product volume and price, the company’s automotive electronic layout is expected to bring new opportunities for rapid performance growth to the company.
Profit forecast and investment suggestions:
As a leading communication equipment supplier in the industry, the company has long focused on providing users with comprehensive and systematic digital home solutions and services, and is committed to building ultra-high definition and smart Internet + digital life. On the basis of deep cultivation of the main business, the company focuses on the VR field. The product parameters are better than shoulder products, and the price has a competitive advantage. In addition, the company’s forward-looking layout of automotive electronics, central control panel and liquid crystal instrument are expected to bring new growth points to the company with the simultaneous trend of volume and price in the industry. We estimate that the company’s net profit attributable to the parent company in 21-23 years will be RMB 360 million, RMB 740 million and RMB 909 million respectively, corresponding to the P / E ratios of 38, 18 and 15 times in 21-23 years. With reference to the average valuation of 24 times of comparable companies in the same industry in 2022, the corresponding target price is RMB 16.8, and the “buy” rating is given for the first time.
Risk tip: wi-fi6 promotion is not as expected; Fierce competition in the industry and the risk of price decline; The price rise of upstream chips and raw materials affects profitability; The execution progress of automobile orders is lower than expected; The development of VR industry is less than expected; Recent stock price changes, etc
