\u3000\u3 Guocheng Mining Co.Ltd(000688) 039 Hangzhou Arcvideo Technology Co.Ltd(688039) )
Event:
The company issued the 2021 annual report after the closing on April 15, 2022.
Comments:
The operating revenue increased by 14.30% year-on-year, and the pan security industry achieved rapid growth
In 2021, the company achieved an operating revenue of 418 million yuan, a year-on-year increase of 14.30%. By industry:
1) media and culture industry: the revenue reached 295 million yuan, a year-on-year decrease of 0.64%. Among them, the revenue of video solution products was 251 million yuan, a year-on-year decrease of 6.11%; The revenue from technical services was 43 million yuan, a year-on-year increase of 50.05%. By the end of 2021, among the eight 4K UHD channels approved by broadcasting institutions at all levels in China, the company has participated in the construction of six 4K UHD channels. 2) Pan security industry: the revenue was 123 million yuan, a year-on-year increase of 79.47%, and the gross profit margin increased to 53.90%. In the pan security industry, in 2021, the company carried out pilot demonstration around the key areas, core technologies and typical applications of digital government construction, enabled the modernization of social governance with video + AI + big data, and led the overall breakthrough with pilot demonstration. At present, the company has successively participated in the construction of dozens of social governance pilot projects in various cities across the country.
Actively explore industrial applications and business scenarios, and the net profit attributable to the parent company is affected by the increase of expenses
In 2021, the company realized a net profit attributable to the parent company of 613475 million yuan, a year-on-year decrease of 40.34%. In order to meet the needs of business development, new industry layout and continuous product innovation, the company continued to increase investment in R & D, excellent talent reserve, market expansion and channel construction. The cost rates of sales, management and R & D in 2021 were 8.29%, 7.36% and 21.75% respectively. The company continued to carry out technological innovation in the two major fields of media culture and pan security, and invested in the research and development of cutting-edge technologies related to on-board intelligent entertainment cockpit in the intelligent networked automobile industry. In 2021, the R & D investment was 909489 million yuan, a year-on-year increase of 46.89%. At the end of the year, the number of R & D personnel was 235, accounting for 70.15% of the total number of the company.
Cooperate with the upstream and downstream of the industrial chain to deeply participate in the localization process of UHD software and hardware equipment
As the first member of the "localization strategic alliance", the company's "Panwei" series products are deeply integrated with Huawei's "Taishan" series Kunpeng high-performance processors to realize the full localization of encoders from hardware platform, CPU, operating system, database to application software. As a professional supplier of intelligent video solutions, based on the technical foundation and relying on strong R & D capability and technical accumulation, the company has greater technical advantages over companies in the same industry in coding, transcoding, editing and intelligent identification. Relevant products have completed mutual certification with photosynthetic organization, Huawei Kunpeng, Tongxin operating system, Dameng database, China Science and technology controllable workstation, etc, And won the first prize of Zhejiang Kunpeng application competition.
Profit forecast and investment suggestions
The company has a deep accumulation of core technologies in the field of video coding and transcoding. In China, it provides users with overall solutions for media culture and public security for large video industries such as radio and television media, Internet video, education, public security, justice, social security and government. With the company's continuous expansion of downstream application fields, there is a broad growth space in the future. It is predicted that the operating revenue from 2022 to 2024 will be 576, 778 and 1022 million yuan, the net profit attributable to the parent company will be 102, 141 and 192 million yuan, the EPS will be 127, 1.75 and 2.39 yuan / share, and the corresponding PE will be 32.21, 23.27 and 17.08 times. Since its listing, the PE of the company has mainly operated in the range of 40-120 times. The target PE of the company in 2022 has been adjusted to 50 times, and the corresponding target price is 63.50 yuan. Maintain the "buy" rating.
Risk tips
Covid-19 recurrent pneumonia; The R & D and innovation of core technology are less than expected; The progress of product R & D and commercialization in newly developed industries is less than expected; The risk that accounts receivable exceed the credit period; Market competition intensifies.
