\u3000\u30003 Huawen Media Group(000793) 00079)
Event overview
On April 12, 2022, the company released its annual report for 2021. In 2021, it realized an operating revenue of 1.028 billion yuan, a year-on-year increase of 4.16%; The net profit attributable to the parent company was 105 million yuan, a year-on-year increase of 36.56%, and the deduction of non net profit was 95 million yuan, a year-on-year increase of 52.11%; The company plans to pay a cash dividend of 0.10 yuan (including tax) for every 10 shares.
The gross profit margin remained at a high level and the number of projects under research increased
The overall gross profit margin of the company was 49.19%, with a year-on-year increase of 0.74pct; In terms of products, the revenue of video technology products and services, network transmission system and financial technology products increased rapidly during the reporting period, with the growth rate of 44.15%, 26.15% and 11.66%, and the gross profit margin was 72.26%, 61.79% and 14.62% respectively, with the change ranges of -11.13pct, 14.41pct and 4.12pct respectively. In terms of expense ratio, the sales expense ratio is 12.71%, with a year-on-year increase of 0.55pct, the management expense ratio is 19.07%, with a year-on-year decrease of 0.53pct, the financial expense ratio is – 3.88%, compared with – 4.44% in the same period last year, and the R & D expense ratio is 11.74%, with a year-on-year increase of 2.33pct. In 2021, the R & D expense of the company increased significantly, the number of projects in the research stage increased compared with the same period last year, and 20 patents were added during the reporting period.
5g and 8K Ultra HD black technology appeared, and the R & D and verification of several new projects were completed
The company has an independently developed avs2 / avs3 series ultra-high definition video algorithm library, with 4K / 8K acquisition, core transmission and exchange, storage and other whole industry chain solutions. It actively participates in the live coverage of the 2022 Beijing Winter Olympic Games and winter Paralympic Games by the head office and Beijing TV station, and helps the head office to achieve the global leadership in broadcasting technology in the history of the Olympic Games, It has provided people’s daily new media with ultra-high definition video products and technical support, including 5g + 4K portable live backpack, to continuously refresh and improve the audience’s Olympic viewing experience. In 2021, the company’s integrated video cloud platform project, ultra-high definition encoder and other projects were successively verified and completed. It is planned to reach the advanced level of the industry, improve the overall layout of the company, improve the core competitiveness and market share of products, and provide better technical support for the live broadcasting work of the main station and local stations of the 2022 Hangzhou Asian Games.
Policy empowers the forward-looking research and development of core technologies and explores the development meta universe
The 14th five year plan for the development of Shanghai’s electronic information industry emphasizes the research and development of the underlying core technology of the meta universe. The company uses 5g and other technical reserves to explore and build the foundation of the meta universe scene. The dongyiyuandian platform of the subsidiary of fast audio visual, in conjunction with large institutions in China, has issued a variety of public welfare digital collections and many commercial projects such as Baoqing bamboo carving intangible cultural heritage and Dunhuang Flying blessing, which has achieved great social attention, dissemination and publicity. The annual report shows that in the future, the company will combine the technical reserves such as security system framework, low delay transmission, ultra-high definition coding, 5g video application, blockchain application and smart contract to build a meta cosmic scene foundation for relevant applications from the bottom that meets the core elements such as meta cosmic identity cognition, immersion, low delay and economic system.
Actively participate in infrastructure construction and help the construction of digital video communication technology.
The 14th five year plan for promoting agricultural and rural modernization implements the smart radio and television edge fixing project and rural project, and speeds up the development of rural digital TV network. The company plans to participate in the pilot construction of smart radio and television edge fixing project in Guangxi, Yunnan, Inner Mongolia and other provinces. According to the Interim Measures for the administration of emergency broadcasting, the national, provincial, municipal and county emergency broadcasting system is planned to be basically completed by 2025. The company expects to complete the research and development of multiple projects in 2022, seize the construction market of the four-level national emergency broadcasting system and build an emergency broadcasting system covering the whole province. The satellite live broadcasting center of the State Administration of radio, film and television has made every effort to promote the upgrading of satellite live broadcasting HD terminals, develop “domestic” and “HD” fourth generation live broadcasting satellites, and release the signal of increasing market demand for DCAS system.
Investment suggestion: maintain the “overweight” rating
According to the annual report data, we adjusted the operating revenue forecast of the company from RMB 1.581/18.89 / (unpredicted) billion to RMB 1.398/17.27/1.959 billion in 20222024, the net profit attributable to the parent company from RMB 213 / 2.58 / (unpredicted) million to RMB 140 / 174 / 208 million in 20222024, and the corresponding EPS forecast was adjusted from RMB 0.15/0.18 / (unpredicted) to RMB 0.10/0.12/0.15, and the PE corresponding to the closing price of RMB 5.78/share on April 13, 2022 was 59, 47 and 40 times respectively, Maintain the “overweight” rating.
Risk tips
Macroeconomic fluctuation risk; Industry policy fluctuation risk; The investment project is less risky than expected.
