\u3000\u30 Beijing Telesound Electronics Co.Ltd(003004) 96 Thunder Software Technology Co.Ltd(300496) )
Events
The company recently released the performance forecast for the first quarter of 2022: the company expects to realize a net profit attributable to shareholders of listed companies of 152160 million yuan in the first quarter of 2022, with a year-on-year increase of 37.89-45.15%; The net profit attributable to shareholders of listed companies after deducting non recurring profits and losses was 142150 million yuan, with a year-on-year increase of 47.89-56.22%.
Key investment points
The impact of the epidemic is limited, and the performance maintains high growth
Relying on global R & D collaboration, customer stickiness and long-term accumulated organizational effectiveness, the company has minimized the impact of the epidemic on the company’s operation. Revenue side: in the first quarter of 2022, the year-on-year growth rate of the company’s operating revenue is expected to exceed 45%. Profit side: the net profit attributable to the shareholders of the listed company was 152160 million yuan, with a year-on-year increase of 37.89-45.15%, and the attributable net profit after deduction was 142150 million yuan, with a year-on-year increase of 47.89-56.22%, higher than the growth rate of the company’s revenue. The impact of the epidemic on the company’s performance is limited. During the reporting period, the amortization expense of intangible assets evaluation and appreciation caused by M & A was about 11 million yuan, and the equity incentive expense was about 33 million yuan, an increase of about 6 million yuan over the same period of last year, which dragged down the company’s profit growth to a certain extent.
The three major businesses have their own points of view, with fixed growth to improve competitiveness and lay a foundation for future growth
The company has made intensive efforts in the three tracks of smart software, smart car and smart Internet of things. The company has deeply bound with chip giant Qualcomm, actively opened up downstream customers, and created leading technology and ecological barriers around the continuous R & D and innovation of intelligent operating system technology. Intelligent software field: the company’s intelligent operating system scheme supports all mainstream mobile operating systems such as Android, Linux, Hongmeng and windows. The company has in-depth cooperation with huami OV and has a full stack solution from the chip end to the operating system, with high customer stickiness. In the field of smart cars: by acquiring high-quality companies such as epsilon, rightware and Fuyi airlines, we have successfully stuck the smart driving track. At present, more than 200 automobile manufacturers and Tier1 and other customers have adopted the company’s intelligent cockpit products and solutions. In the field of intelligent Internet of things: the company has the ability to provide customers with one-stop solutions from chip layer, driver layer, operating system layer, algorithm layer to application layer. Its XR, smart camera, UAV, sweeping Siasun Robot&Automation Co.Ltd(300024) and other IOT products are in rapid volume. Under the trends of “Internet of all things + artificial intelligence + 5g” and “software defined car”, the company’s leading platform layout and forward-looking R & D card position will help the company fully benefit from the development of the industry.
Recently, the company issued a fixed increase plan, which plans to raise no more than 3.1 billion yuan for R & D projects of vehicle operating system, development and industrialization projects of edge computing station, R & D and industrialization projects of extended display (XR), R & D projects of distributed computing network technology and supplementary working capital. We believe that this fixed increase will help the company continue to explore potential markets, improve product capabilities, further consolidate the company’s competitiveness in the smart connected vehicle business and smart Internet of things business, and lay the foundation for the company’s future growth.
Core executives increased their holdings of shares of the company, demonstrating their confidence in the development of the company
Announcement on March 9, 2021: the core management of the company plans to increase the shares of the company by no less than 15 million yuan within 6 months, the amount of shares increased by Vice Chairman Zou Pengcheng, director, chief financial officer and Secretary of the board of directors Wang Huanxin is no less than 6 million yuan, and the amount of shares increased by deputy general manager Sun Tao is no less than 3 million yuan. The increase of core management’s holdings shows the confidence in the future development of the company and the recognition of the long-term value of the company.
Profit forecast
Regardless of the impact of fixed growth on the company for the time being, it is predicted that the company’s EPS will be 2.18, 2.89 and 3.79 yuan from 2022 to 2024, and the current share price corresponding to PE will be 41, 31 and 23 times respectively. It will be covered for the first time and given a “recommended” investment rating.
Risk tips
Macroeconomic downside risks, the risk that the intelligent software business is less than expected, the penetration of intelligent driving is less than expected, the development of the Internet of things industry is less than expected, the risk of exchange rate fluctuations, the risk of repeated epidemics, fixed growth and raised investment projects are lower than expected, etc.
