\u3000\u3 Shengda Resources Co.Ltd(000603) 236 Quectel Wireless Solutions Co.Ltd(603236) )
The performance in 2021 is in line with expectations. The company's annual revenue in 2021 was 11.262 billion yuan, a year-on-year increase of + 84.45%; The net profit attributable to the parent company was 358 million yuan, a year-on-year increase of + 89.43%, and the annual performance was in line with expectations.
The performance continues to grow rapidly, the scale effect is released, and the expense rate is reduced. 21q4 achieved an operating revenue of 3.79 billion yuan in a single quarter, a year-on-year increase of + 99.5%; The net profit attributable to the parent company was 121 million yuan, a year-on-year increase of + 89.2%, with a continuous high growth throughout the year. The pressure on the cost of upstream raw materials is large, reducing the gross profit margin. In 2021, the gross profit margin increased from - 2.7pct to 17.6% year-on-year, but the scale effect was released and the operation and management efficiency was improved, and the expense rate decreased significantly (year-on-year - 3.2pct). Among them, the Q4 R & D expense rate decreased to 7.5%, which promoted the growth of net profit in 21 years to exceed the growth of revenue.
Ensure production capacity, R & D and innovation, and consolidate the leading position of modules. According to abiresearch data, the market share of M2M cellular modules of the company reached 38% in 2021, ranking first in the world. In terms of production capacity, the company's Hefei intelligent manufacturing center has an annual output of 45 million pieces; Changzhou intelligent manufacturing center has completed the erection of 15 production lines, and will complete the erection of another 5 production lines in 2022, with a production capacity of 90 million pieces / year. In terms of R & D, the company set up a new Guilin R & D center in 2021, with an increase of 631 to 2997 R & D personnel. The company actively ensures the stable supply of production capacity, promotes self built production capacity, global OEM cooperation, actively and effectively prepares goods and materials, continues R & D and innovation, and consolidates its leading position.
The expansion of industrial chain has achieved initial results. In 2021, the company has achieved rapid breakthroughs in the layout of more than 300 antennas and achieved initial results in the sales of new products; Queicloud Internet of things cloud platform has built many product lines such as smart travel and smart power consumption; ODM business has provided PCBA solutions for leading customers in PDA, POS payment, shared travel, BMS, aiot and other industries, and provided overall solutions for the second round of intelligent travel in cooperation with cloud business and antenna; Smart city digital integration business has formed long-term strategic cooperative relations with provincial / municipal governments, enterprises and institutions and other customers. Risk tip: the development of Internet of things is not up to expectations; Intensified market competition and fierce price war; The expansion of the company's industrial chain did not meet expectations.
Investment advice: maintain the profit forecast and maintain the "buy" rating.
Maintaining the previous profit forecast, it is estimated that the net profit attributable to the parent company from 2022 to 2023 will be RMB 640 / 1.09 billion respectively, and the corresponding PE will be 33 / 19x respectively. The leading position of the company's module is stable, the internationalization strategy continues to promote, and continues to benefit from the dividends of the Internet of things. The expansion and extension of the industrial chain is expected to further open up growth space, improve profitability and maintain the "buy" rating.
