\u3000\u3 China Vanke Co.Ltd(000002) 151 Beijing Bdstar Navigation Co.Ltd(002151) )
Event: the company announced on April 15 that in 2021, the company’s revenue was 3.851 billion yuan (+ 6.24%), the net profit attributable to the parent company was 203 million yuan (+ 38.22%), the gross profit margin was 29.23% (+ 0.88pcts), and the net profit margin was 5.04% (+ 1.48pcts). At the same time, the company disclosed the performance forecast of the first quarter. The company expects the net profit attributable to the parent company in 2022q1 to be 42-50 million yuan (+ 0.31-19.42%).
Key investment points:
The company’s net profit attributable to its parent company hit a new high since its listing, and disposed of several subsidiaries to focus on its main business
During the reporting period, the company’s revenue (RMB 3.851 billion, + 6.24%) increased steadily, and the gross profit rate increased slightly (29.23%, + 0.88pcts), which was mainly due to the rapid growth of the company’s chip business, ceramic components business and automotive intelligent Internet connection business. The company’s net profit attributable to the parent company (203 million yuan, + 38.22%) and net profit deducted from non attributable to the parent company (131 million yuan, + 105.70%) both reached a new high since listing, and the net interest rate (5.04%, + 1.48 PCTs) increased significantly, also reaching a new high in recent three years. We believe that it is mainly due to the significant growth of deferred income amortization (54 million yuan, + 47.67%) and value-added tax rebate (36 million yuan, + 67.77%) in the company’s other income. At the same time, the company has obtained a total of 30 million yuan of Beidou major special subsidies and Xiantao data Valley industry support funds, and the sharp decline of income tax (06 million yuan, – 86.09%).
2022q1, benefiting from the chip business market, especially the demand growth in high-precision and Internet of things applications, the company expects the net profit attributable to the parent company to be 42-50 million yuan, which is the best start since the company was listed in 2007.
Specifically, the company’s main business consists of chip and data services, navigation products, ceramic components and automotive electronics. During the reporting period, the details of each business are as follows:
① chip and data service business is the core advantage business of the company, with rapid growth in revenue (RMB 757 million, + 28.97%), mainly due to the increase in revenue of high-precision satellite positioning chip / module / board products in UAV, Internet of things, vehicle navigation, driving training and driving test, measurement and mapping, Siasun Robot&Automation Co.Ltd(300024) and other major fields, and the introduction of standard precision products to large customers. The growth rate of chip business and PCTs’ net profit of 1.0 billion yuan and 1.0-2.3 billion yuan, which is also worth noting that the growth rate of PCTs’s core business and PCTs’s net profit of 1.0 billion yuan and 1.0-2.3 billion yuan (1.0-2.37%) is also higher than that of PCTs’s (1.0 billion yuan), + 3.3 billion yuan, which is also worth noting, We think it may be related to the change of product structure at different levels of xinxingtong.
② the revenue of navigation products (994 million yuan, + 1.12%) increased slightly, and the gross profit margin (35.62%, + 3.00pcts) also increased, mainly due to the company’s stable profitability of traditional international agency business, the expansion of high-precision positioning antenna business in other fields on the basis of the steady rise of traditional surveying and mapping business, and the improvement of product quality and delivery capacity of information equipment business.
③ the business income of ceramic components (RMB 163 million, + 18.65%) increased steadily, and the gross profit margin (37.50%, + 1.26pcts) increased slightly, mainly due to the significant growth in the sales of 5g base station filter products and HTCC encapsulated ceramic products, and the continuous promotion of 5g small base station and WiFi 6e in the market.
④ automotive electronics business is one of the main sources of revenue of the company in recent years. The revenue scale (1.937 billion yuan, + 1.03%) increased slightly, and the gross profit margin (12.40%, – 1.90 PCTs) decreased. The business can be further divided into intelligent network service and automobile engineering service. Among them, the business income of intelligent Internet connection (1.434 billion yuan, + 33.39%) increased rapidly, mainly due to the obvious increase in sales income to major customers Chang’an, Geely and Volkswagen. In terms of automotive engineering, with the stripping of in tech, the main body of automotive engineering business by the company’s subsidiary Beidou Germany, the company’s automotive electronic business will mainly focus on Intelligent Internet connection business in the future.
In addition, it is worth noting that during the reporting period, the company stripped off its non core business and focused on its main business. Completed the disposal of equity of several subsidiaries including Galaxy microwave (navigation and positioning business), Dongguan Yintong (navigation and positioning business) and in tech (automotive engineering business).
On the whole, the main growth points of the company’s revenue in 2021 come from the chip business, ceramic components and automotive intelligent Internet connection business. With the disposal of the company’s equity of Galaxy microwave, Dongguan Yintong and in tech, it is expected that the company’s navigation products and automotive electronics revenue may be affected to some extent in 2022, but the asset quality is expected to be further improved. The high-precision navigation market represented by Beidou third generation navigation system has ushered in a period of rapid development, the construction of 5g base stations and the demand for terminal products have increased, and the company’s automotive intelligent Internet service customers are expanding rapidly. Under the influence, the company’s revenue and overall parent net profit of relevant sectors are also expected to maintain rapid growth, and the gradual improvement of scale effect is also expected to further improve the company’s profitability.
Focus on the progress of the company’s raised investment projects, the development of subsidiaries with high goodwill value and the reduction progress of large funds
In terms of three fees, during the reporting period, the company’s three fee rate (19.59%, -0.07pcts) decreased slightly as a whole. Among them, the sales fee rate (6.45%, + 1.04pcts) increased significantly. We believe that the company has increased business promotion and the sales volume of some business products (such as the revenue of Zhilian technology, a subsidiary of automotive electronics business, increased significantly, resulting in the obvious increase of entertainment fees, outsourcing fees and after-sales service fees The financial expense ratio (0.57%, -0.64pcts) decreased significantly, mainly due to the company’s reduction in loan scale and related interest expenses. In addition, the company’s R & D expense ratio (7.21%, + 0.96 PCTs) has increased, and the number of R & D personnel (1185, + 16.75%) has also increased steadily. From the perspective of the company’s R & D projects, represented by Beidou navigation downstream application terminal chips and modules, LTCC and ceramic materials, intelligent cockpit and other projects, covering all four business product lines of the company at present, we believe that the company’s investment in technology R & D has increased, It has a positive impact on the maintenance of technical barriers and the expansion of downstream markets during the 14th Five Year Plan period.
In terms of cash flow, during the reporting period, the company’s net increase in cash and cash equivalents (231 million yuan, – 56.60%) decreased significantly, of which the net cash flow generated by investment activities (- 136 million yuan, an increase of 256 million yuan compared with 2020) increased significantly, mainly due to the disposal of Galaxy microwave and overseas non wholly-owned in tech equity while the company continued to increase investment in R & D of core business; The net cash flow from financing activities (77 million yuan, – 84.70%) decreased significantly, mainly due to the company’s receipt of funds raised from non-public offering in 2020, and the reduction of investment absorption and interest bearing liabilities in 2021.
In terms of other financial data, at the end of the reporting period, the company’s inventory (970 million yuan, + 18.45%) increased, of which raw materials (394 million yuan, + 31.18%) and products in process (123 million yuan, + 30.57%) increased rapidly, which may indicate that the company is strengthening the preparation of goods. At the same time, the company’s inventory also includes delivered products (177 million yuan, + 26.60%), which is expected to be recognized in the income statement in the future. In terms of fixed growth, in 2020, the company raised 750 million yuan through non-public offering, and some of the funds will be used for Jiali electronics’s “5g communication core RF component capacity expansion and test and verification environment construction project” and Beidou Zhilian’s “intelligent Internet connected automotive electronic product capacity expansion project”. We believe that the implementation of the above projects is expected to improve the capacity of the company’s ceramic components and automotive Zhilian business segment, It is conducive to the expansion of the market and the improvement of profitability. It is suggested to focus on the progress of the project. At the same time, with the company’s disposal of the equity of Galaxy microwave, Dongguan Yuntong and Intel, the company’s goodwill (641 million yuan, – 36.94%) and the proportion of goodwill in net assets (13.69%, – 8.18 PCTs) decreased significantly at the end of the reporting period. At present, the goodwill mainly exists in Huaxin antenna, Jiali electronics and rxnetworks Inc And other subsidiaries, it is suggested to focus on the industries and performance changes of the above subsidiaries. In addition, in November 2021, the national integrated circuit fund disclosed the announcement of pre reduction, and plans to reduce its holdings of no more than 1024.4 million shares (accounting for 2% of the total share capital of the company) through centralized bidding from December 6, 2021 to June 2, 2022. As of March 5, 2022, the reduction plan has not been implemented. It is suggested to focus on the progress of reduction.
The company focuses on three high boom industries and four main businesses
Founded in 2000, the company is one of the earliest enterprises to enter the satellite navigation industry in China. During the reporting period, the company’s main business covers three industrial fields: satellite navigation, 5g ceramic components and automotive intelligent network. The main business categories include chip and data services, navigation products, ceramic components and automotive electronics.
① chip and data services
Chip business is the core advantage of the company. It is in a leading position in China and in the world. Benefiting from the strong demand of downstream, it has achieved rapid growth. The shipment volume of high-precision modules and boards of the company has doubled for four consecutive years. The specific products of chip business mainly include chip, module / board series products. It is mainly used as the core components of terminals, receivers and other products. It is mainly used in UAV, autopilot, surveying and mapping, precision agriculture, Siasun Robot&Automation Co.Ltd(300024) and other industrial application fields. The main customer groups are manufacturers or integrators of terminals and receivers. During the reporting period, the company actively responded to the problem of “core shortage”, turned danger into opportunity, and achieved remarkable results in supply chain guarantee. At the same time, grasp the market window period brought by the shortage of chips, actively layout the mass consumption / Internet of things chip business, and quickly establish the R & D and business platform of relevant chips for the Internet of things and consumer markets.
In terms of cloud services, the company focuses on the location data service market, takes the auxiliary enhancement of location services and high-precision algorithms as the cornerstone, creates the network cloud end integration capability, and cooperates with chip manufacturers, integrators, operators and other partners to provide global users with products and services such as high-precision positioning, auxiliary positioning, cloud core integration and algorithm IP. Cloud services focus on emerging smart markets such as consumer (including mobile phones and wearable), industry (UAV, outdoor Siasun Robot&Automation Co.Ltd(300024) , precision agriculture), digital city (sharing economy, congestion control, natural gas pipeline inspection) and intelligent driving. During the reporting period, the company jointly increased the capital of Zhendian technology with the actual controller and core employees, and built a high-precision data service business through an innovative partner mechanism. Zhendian technology released “truepoint global high-precision data service platform”, which is the landing of the company’s “cloud + core” strategy and provides high-precision spatial location data services for intelligent applications such as UAV, Siasun Robot&Automation Co.Ltd(300024) , intelligent driving, Jiangsu Nonghua Intelligent Agriculture Technology Co.Ltd(000816) and so on.
Marine fishery location data service is the company’s traditional advantageous business, which mainly provides information system application solutions and information services for marine fishery safety production. On the basis of traditional business, the company actively develops smart fishing port business. As the first unit in China to obtain the qualification of Beidou system operation service division, the company provides users with navigation positioning, short message communication (SMS) services and location-based value-added information services through the independently developed Beidou satellite navigation operation service platform. During the reporting period, the company played an exemplary role and achieved the key start of offshore fisheries by implementing representative key projects such as the provincial sea related fishing vessel intelligent supervision system project and the municipal fishing vessel technical control equipment assembly project. Significant breakthroughs have been made in the business of smart fishing port. Huanghua smart fishing port project has been accepted and actively planned for demonstration and promotion.
② navigation products
Beijing Bdstar Navigation Co.Ltd(002151) developed the first large-scale civil application of Beidou in China. The satellite navigation products independently developed by the company fully lead the industry and are widely used in various fields of production, life and social development. Navigation products business is the company’s traditional advantageous business, which is in a leading position in China. Mainly include
Antenna, international agent products, information equipment products and data acquisition terminals. Antenna products include satellite positioning antenna, wireless transmission products, Tiantong satellite mobile communication antenna, passive antenna products, active antenna products, stand-alone / dipole antenna and special antenna. As the basic component of terminal products, it mainly realizes the reception, transmission, conversion and processing of satellite navigation signals. It is widely used in surveying and mapping, UAV, intelligent transportation, aerospace, deformation monitoring, intelligent driving, precision agriculture, emergency rescue and other fields.
In terms of international agent products, they are mainly used in the application fields of Surveying and mapping, aviation, UAV, rail transit, mining, time service, precision agriculture and other industries. The main customer groups are positioning and orientation application users in the field of Surveying and mapping, UAV flight control positioning and orientation application users, CORS station positioning and observation application users, precision agriculture positioning and orientation application users, etc. In terms of information equipment products, the main products include Beidou application terminal, Beidou command equipment, Beidou application system, Tiantong satellite communication terminal and microwave components / parts / single machine, etc. The service provides users with basic products, terminal products, solutions and location-based information service systems such as satellite navigation, inertial navigation, time service, positioning and orientation.
In terms of data acquisition terminals, the main products include three prevention handheld terminals, handheld acquisition terminals, medical handheld terminals, etc. It mainly features embedded, mobile and cloud computing, serves the information market of express logistics, warehousing and distribution, Medical Pharmacy, retail FMCG, industrial manufacturing and other industries, and provides industry users with integration services from hardware equipment to software system.
During the reporting period, the profitability of the company’s traditional international agency business was stable, and the high-precision positioning antenna increased steadily in the traditional surveying and mapping business. On the basis of strengthening the tackling of top customers in UAV, agricultural machinery, driving test and other industries, the company accelerated the layout of the intelligent network antenna market, and the field of high-precision applications continued to expand. Information equipment seized the opportunity of beidou-3’s upgrading, actively arranged the card position, improved product quality and delivery capacity, and opened a new situation for business transformation and market expansion.
③ ceramic components
The company is one of the few enterprises in the world with the preparation technology of low-temperature CO fired ceramics (LTCC) and high-temperature ceramics (microwave medium) materials at the same time. With the leading simulation design ability of embedded devices and stable process technology ability, the company can carry out flexible design according to customer requirements, and has the advantages of short delivery time, low cost and reliable quality. Microwave ceramic devices mainly include basic materials, LTCC components and microwave dielectric components, which are widely used in 5g communication, satellite communication, automotive electronics, aerospace, consumer electronics and other fields.
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