\u3000\u30 Beijing Jingyeda Technology Co.Ltd(003005) 90 Queclink Wireless Solutions Co.Ltd(300590) )
Event: on April 13, 2022, the company released the annual report of 2021 and the first quarterly report of 2022. In 2021, the company realized an operating revenue of 921 million yuan, a year-on-year increase of 94.79%; The net profit attributable to the parent company was 156 million yuan, a year-on-year increase of 71.94%. In the fourth quarter of 2021, the company realized an operating revenue of 318 million yuan, a year-on-year increase of 87.69%; The net profit attributable to the parent company was 44 million yuan, a year-on-year increase of 55.14%. In the first quarter of 2022, the company achieved an operating revenue of 210 million yuan, a year-on-year increase of 37.49%; The net profit attributable to the parent company was 19 million yuan, a year-on-year decrease of 23.43%.
With the rapid growth of revenue and the stabilization of profitability, we can expect: with the accelerated penetration of the Internet of things into various industries, downstream customers have strong demand for products. With its high supply capacity, good technology R & D ability and innovation ability, the company has been highly recognized by the majority of customers. In 2021 and the first quarter of 2022, the company's operating revenue achieved rapid growth. There are many components such as intelligent terminal outsourcing modules of the company's two wheeled vehicles. Due to the rise in the price of raw materials, the gross profit margin of the company's two wheeled vehicle business decreased by 10.71% year-on-year in 2021, resulting in a decrease in the company's gross profit margin to 36.05%. In Q1 2022, due to the rising price of raw materials and the increasing proportion of two wheeled vehicle business income with low gross profit margin, the gross profit margin of the company continued to decline to 30.67%. At the same time, due to the increase of financial expenses, equity incentive expenses and depreciation and amortization expenses caused by exchange rate fluctuations, the company's net profit attributable to the parent decreased year-on-year. However, in the future, the company will produce or purchase some core parts by means of self-research and domestic substitution. At the same time, with the stabilization of raw material prices and the weakening of exchange rate fluctuations, the profitability of the company is expected to stabilize. As of Q1 2022, the company's orders in hand are about 380 million yuan.
The revenue of two wheeled vehicle products increased rapidly, and animal traceability products continued to expand the international market: from the perspective of products, the revenue of the company's on-board information intelligent terminal / asset management information intelligent terminal / personal safety intelligent terminal / two wheeled vehicle intelligent terminal / other products in 2021 accounted for 42.29% / 27.09% / 0.23% / 21.45% / 8.94% respectively, of which the two wheeled vehicle intelligent terminal achieved rapid growth, with a year-on-year increase of 248.53%. The company has developed series products such as SC200, sc205 and SC300 for the micro travel market, actively explored China's two wheeled vehicle market, and successively signed multiple purchase orders with Zhejiang Jinbang sports equipment Co., Ltd. In terms of animal traceability products, since the cooperation with Lide products, the company has opened up markets in Europe, South America, North America and Africa. The company actively promotes the research and development progress of animal wearable products, among which the pig, cow and sheep ear tags based on Bluetooth technology have been in the preliminary experimental stage of the ranch. The company has launched an e-commerce platform for animal tracking and tracing products for nearly two years, and has been successfully launched in Australia, Canada and New Zealand. In 2021, the company's animal tracking and tracing product business achieved a sales revenue of more than 29 million yuan.
The continuous growth of R & D strength and the introduction of new products highlight the company's core competitiveness: the company continues to maintain a high proportion of R & D investment. In 2021, the company's R & D expenses were 963851 million yuan, accounting for 10.47% of revenue, an increase of 43.85% over the same period of last year. By the end of 2021, the company had 269 R & D personnel, accounting for 61% of the total number of the company. The high proportion of R & D personnel is the source power for the company to maintain continuous innovation.
The company has 100 authorized patents and 165 software copyrights. In 2021, the company launched five new models of GV vehicle management series, eight new models of GL goods and vehicle management series, one model of CV video equipment series, one model of WR industrial wireless router series, etc. focusing on the five major fields of vehicle management, shared travel, asset management, animal traceability management and industrial router. The projects under research include CAT1 on-board intelligent terminal supporting dual can, Bluetooth sensor tag, asset management information intelligent terminal supporting multi standard and multi band such as LTE catm1 / Nb2 / EGPRS, and localization substitution of some components. The continuous progress and innovation of new products and technologies is the embodiment of the company's core competitiveness.
Investment suggestion: the company is an industry-leading provider of wireless Internet of things equipment and solutions, with growing performance. We expect the operating revenue of the company from 2022 to 2024 to be RMB 1.447/2.173/3.122 billion respectively, with a year-on-year increase of 57.1% / 50.2% / 43.7%; The net profit attributable to the parent company was 269 / 436 / 618 million yuan respectively, with a year-on-year increase of 73.2% / 61.8% / 41.7%; The corresponding EPS is 0.88/1.43/2.03 yuan respectively. We gave the company 24 times PE in 2022, corresponding to the target price of 21.12 yuan, maintaining the "Buy-A" investment rating.
Risk tips: the development of the Internet of things is less than expected, the expansion of new business is less than expected, the risk of intensified industry competition, the risk of disturbance of international relations and repeated outbreaks
