\u3000\u30 Beijing Jingyeda Technology Co.Ltd(003005) 90 Queclink Wireless Solutions Co.Ltd(300590) )
[key points of investment]
Event 1: the company released its 2021 annual report. In 2021, the company achieved an operating revenue of 921 million yuan, a year-on-year increase of 94.79%, a net profit attributable to the parent of 156 million yuan, a year-on-year increase of 71.94%, and a net profit deducted from non attributable to the parent of 144 million yuan, a year-on-year increase of 141.36%, slightly lower than the previous expectation.
Event 2: the company announced that in the first quarter of 2022, in the first quarter of this year, the company achieved an operating revenue of 210 million yuan, a year-on-year increase of 37.49%, a net profit attributable to the parent of 18.94 million yuan, a year-on-year decrease of 23.43%, and a net profit deducted from non attributable to the parent of 176901 million yuan, a year-on-year decrease of 19.36%.
Two wheeled vehicle intelligent terminal products have made outstanding contributions, and China’s business has made breakthroughs. In 2021, the company’s revenue showed a state of rapid growth. Among the products accounting for a high proportion of revenue, the revenue of vehicle information intelligent terminal products was 389 million yuan, a year-on-year increase of 55.4%; The revenue of asset management information intelligent terminal products was 249 million yuan, a year-on-year increase of 129.68%; The revenue of two wheeled vehicle intelligent terminal was 197 million yuan, with a year-on-year increase of 248.53%, making an important contribution to the growth of the company. According to the information in the first quarter report of 2022, the revenue of the company’s two wheeled vehicle intelligent products increased by 146.6% year-on-year, and continued to maintain a high-speed growth trend. In terms of regions, the company’s overseas revenue was 720 million yuan, an increase of 72.96% year-on-year, accounting for 78.19% of the revenue, and its domestic revenue was 201 million yuan, an increase of 255.8% year-on-year, accounting for 21.81% of the revenue, an increase of nearly 10 PCT year-on-year, making great progress.
Due to the joint action of internal and external factors, the gross profit margin is under pressure in the short term and is expected to rise gradually in the future. The gross profit margin of the company’s main Internet of things business in 2021 was 36.02%, a year-on-year decrease of 6.09pct. Among them, the gross profit margin of two wheeled intelligent terminal products decreased by 10.71pct to 21.09% year-on-year due to the large number of externally purchased modules and other components and the rise of raw material prices, which had a great impact on the overall gross profit margin of the company. The company said that it would replace some core components by self-research in the future to enhance the profitability of the company. The gross profit margin of on-board information intelligent terminal and asset management terminal products fell slightly, down 3.67pct and 3.39pct respectively year-on-year, mainly affected by exchange rate fluctuations and rising raw material prices. In the first quarter of 2022, the company’s gross profit margin was 30.67%, a year-on-year decrease of 7.15pct, mainly due to the increase in the proportion of revenue from two wheeled vehicle intelligent products with low gross profit margin in the revenue in that quarter, as well as the continued impact of exchange rate fluctuations and rising raw material prices. We believe that the factors that suppress the company’s gross profit margin are the short-term fluctuation of the business cycle and the decline of non company market competitiveness and bargaining power. According to the current market situation, the company’s main overseas competitors gradually withdraw from the terminal market, enter the operation service market and become the company’s potential customers. The market competition pattern is further conducive to the company’s future business development. With the increase of the proportion of self-developed parts and the improvement of the price and shortage of upstream raw materials, the company’s gross profit margin is expected to rise gradually
The epidemic repeatedly affected the company’s performance in the first quarter, and the orders on hand laid the foundation for the company’s subsequent performance. The company’s 2022q1 revenue increased by 37.49% year-on-year, and the growth rate decreased significantly compared with that in 2021. The main reason is that since this year, there have been many epidemics in China, and the economic activities in the areas with serious epidemics have been greatly affected by the government’s epidemic prevention policies, resulting in a certain impact on the company’s order execution and delivery, which is expected to return to the normal level with the mitigation of the epidemic in various places. In terms of profitability, the company’s net profit margin fell 7.18pct to 9.03% year-on-year due to exchange rate fluctuations, rising raw materials, product structure adjustment, the company’s new equity incentive expenses, depreciation and decoration expenses amortization of the headquarters R & D building, growth of the number of employees and other factors. We are optimistic about the company’s subsequent performance. The main reasons are as follows: 1) from the company’s performance in recent years, except for the relatively special 2020, the company’s revenue in the first quarter is the lowest quarter of the whole year, which has little impact on the growth performance of the whole year; 2) According to the contents of the company’s first quarterly report this year, as of the end of the first quarter, the company’s inventory scale was 660 million yuan, contract liabilities were 140 million yuan and orders on hand were 380 million yuan. The company’s products have short delivery cycle and strong liquidity, which is expected to lay a good foundation for the growth of the company’s subsequent performance.
[investment suggestions]
According to the 2021 annual report and the first quarterly report of 2022, we raised the operating revenue forecast for 20222023, lowered the gross profit margin and period expense rate forecast, so we lowered the profit forecast and added the performance forecast for 2024. It is estimated that the operating revenue for 20222024 will be RMB 1.445 billion, RMB 2.068 billion and RMB 2.796 billion, the net profit attributable to the parent company will be RMB 237 million, RMB 379 million and RMB 526 million, and the EPS will be RMB 0.78, RMB 1.25 and RMB 173, The corresponding PE is 26 times, 16 times and 12 times. We are optimistic about the company’s future performance and maintain the “buy” rating. [risk tips]
The price of upstream raw materials continues to rise;
Product OEM and delivery links are affected by the epidemic;
Industry competition intensifies.
