\u3000\u30 Beijing Jingyeda Technology Co.Ltd(003005) 90 Queclink Wireless Solutions Co.Ltd(300590) )
Performance review
On April 13, the company released its 21st Annual Report and the first quarterly report of 22 years. In the 21st year, the company achieved a revenue of 921 million yuan, an increase of 94.79% and a net profit attributable to the parent company of 156 million yuan, an increase of 71.94%, slightly exceeding the expectation. The revenue of Q1 in 22 years was 210 million yuan, an increase of 37.49% at the same time, and the net profit attributable to the parent company was 19 million yuan, a decrease of 23.43% at the same time.
Business analysis
The two wheeled vehicle business is bright, and the proportion of Chinese business has increased rapidly. The company’s performance in the whole year of 21 reversed the impact of the epidemic, and its revenue increased by 46.42% compared with that in 19 years, of which the revenue of two wheeled vehicles and asset management increased by 248.53% / 129.68% respectively. In terms of the proportion of business outside China, the Chinese market revenue during the reporting period was 200 million yuan, an increase of 256% at the same time, and the proportion increased by 9.87pp. The company focused on the layout of China’s two wheeled vehicle market; Overseas market revenue was 720 million yuan, an increase of 72.97%. In terms of profitability, due to the shortage of upstream chips and the increase in the proportion of Chinese business, the company’s gross profit margin fell by 6.05pp in 21 years. Through accurate cost control, the company’s sales / management / Finance / R & D expense ratio decreased by 251pp / 0.67pp/1.94pp/3.71pp respectively, realizing a net profit attributable to the parent of 156 million yuan, which basically returned to the level of 19 years.
Self research is expected to realize the replacement of core parts and components, and increase the R & D strength of fixed increase projects. During the reporting period, the company continued to maintain high R & D investment, with R & D expenses of 96 million yuan, accounting for 10.47% of revenue, with a year-on-year increase of 43.85%. The company launched a number of new products in the five fields of vehicle management, shared travel, asset management, animal traceability management and industrial router. The research projects include the localization and replacement of products such as CAT1 vehicle intelligent terminal supporting dual can and some components, taking the intelligent terminal of two wheeled vehicle as an example, The company will replace some core parts by self-research to improve its core competitiveness and gross profit margin. During the reporting period, the company’s fixed increase projects raised a total of RMB 330 million, which is mainly used for the three R & D projects of 4G and 5g communication technology industrialization, animal traceability product information industry upgrading and industrial wireless router. It is expected to be completed in August 24. The capital injection will help the company enhance its R & D strength.
The network of livestock is laid out in advance, and the company is optimistic about the leading advantage of M2M market positioning module for a long time. Through cooperation with Lide, the company takes the lead in laying out the livestock network and continues to tap the global animal traceability management market. As of 22q1, the company had orders in hand of about 380 million yuan, and continued to be optimistic about the long-term advantages of the company’s positioning module leader.
Profit adjustment and investment suggestions
Combined with the latest performance of the company, we adjusted the net profit attributable to the parent company for 22-23 years to be RMB 229 (+ 5.67%) / 308 (+ 12.66%) million respectively, and expected the net profit attributable to the parent company for 24 years to be RMB 414 million and EPS to be RMB 0.75/1.01/01.36 respectively, maintaining the “overweight” rating.
Risk tips
The risk of gross profit margin decline, the impact of the epidemic continues, and the revenue of overseas business is lower than expected.
