\u3000\u3 Shengda Resources Co.Ltd(000603) 236 Quectel Wireless Solutions Co.Ltd(603236) )
Event: on April 16, Quectel Wireless Solutions Co.Ltd(603236) released the annual report of 2021. The annual revenue of 2021 was 11.26 billion yuan, up from 6.11 billion yuan + 84.5% in 2020; The annual net profit attributable to the parent company reached 360 million yuan, up from 190 million yuan in 2020 + 89.43%, deducting the net profit not attributable to the parent company to achieve 340 million yuan, up from + 97.2%.
The performance of the company increased significantly in 2021, which was in line with expectations as a whole. 1) Revenue side: in 2021, the company achieved a revenue of 11.26 billion yuan, a year-on-year increase of 84.5%, of which Q4 achieved a revenue of 3.79 billion yuan, a year-on-year increase of 99.5%, mainly due to the continuous high prosperity of the Internet of things industry and the continuous expansion of the company's own business and products. 2) Cost side: the overall gross profit margin of the company in 2021 was 17.6%, and the gross profit margins of Q1 ~ Q4 were 19.4%, 17.1%, 19.1% and 15.8% respectively. The Q4 cost side was under slight pressure, mainly due to the rise in the price of upstream raw materials; The annual sales / management / R & D expense ratio of the company was 14.6%, a year-on-year decrease of 3.2pcts compared with 17.8% in 2020, and the expense control was continuously optimized; 3) Profit side: the net profit attributable to the parent company in Q4 was 120 million yuan, a year-on-year increase of + 89.3%. Under the pressure of the cost side, the company still maintained rapid profit growth.
The cellular Internet of things module industry continues to be booming, and the company's market share continues to lead. According to abiresearch's forecast data, the number of global Internet of things connections will reach 8.37 billion in 2021, and it is expected to reach 23.1 billion by 2026, with a CAGR of about 22.5% from 2021 to 2026. At the same time, according to the latest data of counterpoint, the revenue of global cellular Internet of things modules in 2021q4 is + 58% year-on-year, the revenue of Chinese market accounts for more than 40%, and the Quectel Wireless Solutions Co.Ltd(603236) global market accounts for 26.6%, which is significantly ahead of the industry.
The downstream application field of the company continues to expand, and the layout of vehicle modules is accelerated. The company continues to enrich its product categories and downstream application fields, and continues to extend and expand in many fields, such as intelligent Internet of vehicles, wireless gateway, smart factory, smart city, photovoltaic, digital economy, smart Siasun Robot&Automation Co.Ltd(300024) . With the continuous promotion of policies related to intelligent networked vehicles, the company continued to increase the layout of vehicle field and made breakthroughs in product certification. Since the beginning of 2022, the company has successively released new on-board Android intelligent modules ag800d and ag600k; At the same time, the company's ag52xr series has made continuous breakthroughs. Ag521r-e has passed the authoritative certification of the European Union, and ag52xr series has won the Verizon certification in North America. Ag525r-gl series is distributed all over the world. The whole series of products can provide module end-to-end solutions for LTE-A high-speed 4G Internet of vehicles communication and dual band GNSS positioning requirements at home and abroad, and support the first landing of 5g + c-v2x models; At present, the company has cooperated with more than ten main engine manufacturers based on ag55xq series vehicle specification module, and some models, such as Gaohe hiphi x under Chinese express, have been put into commercial use.
Investment suggestion: we believe that with the development of the Internet of things industry and the continuous extension of downstream application fields, the comprehensive income brought by the company's scale effect plus cost advantage will gradually appear, and the company's market share is expected to be further improved. At the same time, the vehicle specification level module products have high technical and certification barriers, and the company has obvious first mover advantages. It is expected to fully benefit from the historical opportunities of vehicle intelligence and networking, and open the space for long-term performance growth. We expect the net profit attributable to the parent company from 2022 to 2024 to be RMB 548 / 848 / 1279 million respectively, corresponding to PE multiple of 38x / 25X / 16x, and the PE valuation Center since listing is 102x. We expect that the company's performance under equity incentive is expected to continue to increase and have high growth. Maintain a "recommended" rating.
Risk tip: the competition in the Internet of things industry is intensifying; The development of the Internet of vehicles industry is less than expected.
