\u3000\u3 China Vanke Co.Ltd(000002) 881 Meig Smart Technology Co.Ltd(002881) )
Event: on April 14, the company released the forecast for the first quarter of 2022. It is expected to achieve a revenue of 400410 million yuan, a year-on-year increase of 53.85% – 57.69%, and a net profit attributable to the parent company of 23.5-27.5 million yuan, a year-on-year increase of 52.48-78.43%. In order to overcome the epidemic situation and ensure the delivery of FWA products in the cockpit, FWA companies will actively improve the research and development of 5g products and intelligent cockpit products.
The main products continued to make efforts, and the performance maintained rapid growth. The market recognition of the company’s wireless communication module + solution business model continues to improve, and the scale of high-quality customer groups represented by global operators, brand customers and listed companies continues to expand. The company continues to deepen the customized development of 4G / 5G intelligent modules. 5g intelligent modules have achieved mass delivery in the field of intelligent cockpit of new energy vehicles, made a breakthrough in the field of smart grid, and the layout of cloud computing, laptop, HD video and other fields continues to deepen. The company seized the market opportunity, gave full play to the accumulated advantages of R & D, and achieved substantial growth in intelligent cockpit and FWA products, providing sufficient power for the company’s performance to maintain rapid growth.
In the first quarter, the impact of the epidemic was overcome and the production and operation remained stable. The company still achieved outstanding results in the context of the epidemic. The company is distributed in Shenzhen, Shanghai and Xi’an, and its product production mainly depends on the Shenzhen agent factory and Hangzhou intelligent factory. We judge that the epidemic has a partial impact on production and delivery, but it is controllable as a whole. Some order delivery is affected, but the downstream demand and orders will not disappear. Under this background, the main products still achieved substantial growth, reflecting the quality of operation. We judge that after the recovery, there is still room for further improvement in the overall business development of the company.
Focusing on intelligence and high-end, the market position continues to improve. According to the counter coin data, the share of 2021q4 company has risen to the third in the world, accounting for 6.6%, and the share continues to improve. Focusing on intelligence and high-end, the company has extensive cooperation with front and rear installation partners in the field of vehicle networking, and launched 5g intelligent module cooperation in the head vehicle enterprises, which has become the key point of the company’s performance growth. The company has more than 6 years of Huawei FWA solution capability. 5g and wi-fi6 chip modules have been launched to provide high-quality products for global operators. Taking intelligent module and 5g module as the breakthrough, the company deeply arranges various unmanned scenes and schemes, focuses on high-end fields, has a clear card position, continuously improves the market share and continues to grow at a high speed.
Investment suggestion: as a small market value and high growth IOT module company, the company has a leading business layout. With the continuous realization of high growth performance, it is expected to run out of alpha in the rapidly developing IOT sector. Recently, affected by the overall market, the company’s share price has callback, and there has been a gold allocation point. We expect that the company’s revenue from 2021 to 2023 will be RMB 2.06/36.1/5.2 billion respectively, the net profit will be RMB 124 / 2.2/367 million, the corresponding EPS will be RMB 0.67/1.19/1.99, and the corresponding PE will be 44.8/25.1/15.1 times. Considering the rapid growth of the company in the future and the improvement of the industry status, the “buy” rating is maintained.
Risk warning: the development of Internet of vehicles is not as expected; 5g development is less than expected.
