\u3000\u30 Chongqing Baiya Sanitary Products Co.Ltd(003006) 38 Fibocom Wireless Inc(300638) )
Event:
The company released its 2021 annual report, with an operating revenue of 4.109 billion yuan, yoy + 49.78%, and a net profit of 401 million yuan, yoy + 41.5% (net profit after deduction of 373 million yuan, yoy + 42.7%), equivalent to EPS of 0.97 yuan, which met the expectations. Quarterly, the company achieved an operating revenue of 1.26 billion yuan in 2021q4, yoy + 61.8%, and a net profit of 78 million yuan, yoy + 30.5% (after deducting non net profit of 77 million yuan, yoy + 42.7%). Q4's revenue growth was in line with expectations, and the net profit growth was slightly lower than expectations, mainly because Q4's gross profit margin was under great pressure due to factors such as shortage of raw materials and changes in income structure.
Comments:
In the second half of the year, the volume and price of modules rose simultaneously, driving the rapid growth of the company's revenue and net profit: the rapid growth of the company's revenue mainly benefited from the simultaneous rise of the volume and price of modules. In particular, in the second half of the year, the company's module shipment reached 17.82 million, a year-on-year increase of + 46.9%, while the average price of modules in the second half of the year reached 119 yuan, an increase of 18% over the first half of the year. The company's vehicle business in China has made rapid progress. The wholly-owned subsidiary Guangtong Yuanchi has achieved an annual revenue of 398 million yuan in 21 years, a year-on-year increase of 1190%, and has released a variety of vehicle specification modules; China's vehicle business is expected to continue to drive the company's growth.
The gross profit margin is under great pressure, and the company has achieved remarkable results in cost reduction and efficiency increase: the gross profit margin of the company in 21 years is 24.1%, down 4.21 percentage points year-on-year, of which the gross profit margin of Q4 is 21.25%, slightly lower than expected. The main reason is that the disturbance of upstream supply chain puts pressure on the gross profit margin, and the proportion of low gross profit businesses such as vehicle load, POS and EPE increases. The company's expense ratio during the 21-year period was 16.07%, a year-on-year decrease of 2.3 percentage points, and the results of cost reduction and efficiency increase were significant. Among them, due to the weakening of exchange rate fluctuations, the financial expenses increased from - 60.35% to 13 million yuan year-on-year. In 21 years, the company's R & D expenditure was 429 million yuan, a significant increase of + 49.23% year-on-year. Therefore, there are 27 new patents, the core competitiveness continues to improve, and multiple R & D products are expected to achieve mass production in 22 years.
Profit forecast: the company's "troika" of laptop + vehicle + pan lot goes hand in hand, especially China's vehicle business. With the merger of Ruiling wireless into the company's statements, the combination of Guangtong Yuanchi + Ruiling will have the opportunity to enter the world's top two in the vehicle front loading market in the future, driving the rapid improvement of performance. We expect the net profit of the company in 2022 and 2023 to be 596 million yuan and 785 million yuan respectively, and yoy to be + 49% and + 32% respectively; EPS is 1.44 yuan and 1.90 yuan respectively. The current share price corresponds to 21.7 times and 16.5 times P / E of A-Shares in 2022 and 2023, maintaining the "buy" proposal.
Risk tips: 1. The market expansion of new products is less than expected; 2. Intensified market competition leads to the decline of gross profit margin; 3. The integration of acquired assets was less than expected.
