\u3000\u30 Beijing Jingyeda Technology Co.Ltd(003005) 90 Queclink Wireless Solutions Co.Ltd(300590) )
Event: the company released the annual report of 2021 and the first quarterly report of 2022. In 2021, the operating revenue was 921 million yuan, with a year-on-year increase of 94.79%, and the net profit attributable to the parent company was 156 million yuan, with a year-on-year increase of 71.94%; In 2022q1, the revenue was 210 million yuan, a year-on-year increase of 37.49%, and the net profit attributable to the parent company was 18.94 million yuan, a year-on-year decrease of 23.43%.
Our comments are as follows:
The demand of downstream customers is strong, and the business in various fields continues to expand
In terms of sales regions, the company has achieved higher growth in all regions in the past 21 years than in the past 20 years: 134% in South America, 83% in Asia, 78% in North America, 67% in Europe and 52% in Africa. The company has also expanded smoothly in the Chinese market, with a year-on-year increase of 256%. While focusing on the development of its main business, the company continues to explore markets in new applications and fields, optimize its product structure and help the company's business scale, Always adhere to "becoming the world's leading supplier of Internet of things equipment and technology". From the perspective of business structure, the company focuses on five areas: vehicle management, shared travel, asset management, animal traceability management and industrial Router:
1) the two wheeled vehicle market has developed well, and the domestic and foreign markets have been actively promoted at the same time: in 2021, the company's China Business Division will mainly focus on the market development in the field of micro travel. According to the data of China Bicycle Association, in recent years, the annual sales volume of two wheeled electric bicycles has exceeded 30 million, the social ownership is close to 300 million, and the market scale has reached trillion. The company saw the opportunity, actively invested in R & D and carried out market promotion, developed SC200, sc205, SC300 and other series products for the micro travel market, closely approached the market demand, actively explored China's two wheeled vehicle market and promoted the intelligent development of two wheeled vehicles;
2) from the perspective of animal traceability business: since the cooperation between the company and Lide products, the company has continuously absorbed its process and localized it to become a leader in the Australian market, and opened up markets including Europe, South America, North America and Africa. It has been recognized by users by realizing product lightweight, material localization, innovating production process, improving test methods and improving product stability.
Affected by the price of raw materials, the epidemic and other factors, the net profit of 22q1 declined
The main reasons for the decline of 22q1 profit of the company are 1) exchange rate fluctuation: the average bookkeeping exchange rate of the US dollar decreased by 2.43% year-on-year, which had an adverse impact on the gross profit margin and financial expenses - exchange gains and losses; 2) Rise in raw materials: the company actively purchases raw materials to ensure inventory safety. Under the background of the sharp rise in the price of main raw materials such as chips affected by the epidemic, the cost of the company's products has increased significantly compared with last year; 3) Adjustment of the company's product structure: since 2021, the company's two wheeled vehicle market has developed well. In the first quarter of 2022, the two wheeled vehicle intelligent products increased by 146.60% year-on-year, accounting for a larger proportion of operating revenue. However, the gross profit margin of the two wheeled vehicle intelligent products is not high, resulting in a decline in the company's overall gross profit margin (36.05% in 21 years and 30.67% in 22q1); 4) Increase of various expenses: new equity incentive expenses in the first quarter of 2022, depreciation and amortization of decoration expenses of headquarters R & D building, continuous growth of the number of employees and other factors.
There are abundant orders on hand and the competition pattern is improving. The profitability of adopting self-developed core parts is expected to continue to improve in the future
With the accelerated penetration of the Internet of things into various industries, downstream customers have strong demand for products. As of the end of 22q1, the company's orders on hand are about 380 million yuan. The company's orders are continuously rolling, with short product delivery cycle and strong liquidity. According to the current market situation, in the future, overseas competitors will gradually withdraw from the terminal market and enter the operation service market to become potential customers of the company. The development of refined logistics and two wheeled vehicle market will also broaden the application fields of the company's products and have a positive impact on the company's business. The low gross profit margin of the company's two wheeled intelligent products is mainly due to the large number of externally purchased modules and other components. In the future, the company will adopt self-research to replace some core components, so as to enhance the company's core competitiveness and enhance the company's profitability.
Profit forecast and investment suggestion: with the normalization of the epidemic situation, the company's market strategy is adjusted to the mode of Wuxi Online Offline Communication Information Technology Co.Ltd(300959) combination, and the enterprise brand publicity is strengthened. In the medium and long term, with the continuous and rapid growth of the number of Internet of things devices, the company is expected to continue to benefit. We are optimistic about the company's long-term growth. Considering the impact of the epidemic and the rise in raw material prices, we adjusted the company's forecast of net profit attributable to the parent company in 22-23 years to 250 million and 340 million yuan (original value of 300 million and 400 million yuan). It is expected that the net profit attributable to the parent company in 24 years will be 430 million yuan, corresponding to 22x and 16x PE in 22-23 years, maintaining the rating of "overweight".
Risk tips: international trade friction and market fluctuation risk, greater risk affected by covid-19 epidemic, less than expected new business expansion, exchange rate fluctuation risk, less than expected order delivery, tight supply of upstream raw materials, etc
