\u3000\u30 Zhongyan Technology Co.Ltd(003001) 01 Chengdu Corpro Technology Co.Ltd(300101) )
Event: the company released the annual report of 2021 and the first quarterly report of 2022. In 2021, the company achieved a revenue of 794 million yuan, a year-on-year increase of 37.48%, and a net profit attributable to the parent company of 151 million yuan, a year-on-year increase of 87.91%. In the first quarter of 2022, the company achieved a revenue of 201 million yuan, a year-on-year increase of 18.25%, and a net profit attributable to the parent company of 68 million yuan, a year-on-year increase of 79.59%.
The IC revenue increased significantly in 2021, which promoted the rapid growth of the company's performance. The company's integrated circuit products are mainly digital analog mixed products that deal with analog and digital signals. The product life cycle is long, the industrial technical barriers are high, and they are characterized by high investment, high cost and heavy experience of technical talents. Therefore, the competition pattern of the industry is relatively stable. In 2021, benefiting from the growth of market demand in the integrated circuit industry, the company increased the speed of new product launch and market development while ensuring the continuous improvement of technical level. The integrated circuit business achieved a revenue of 341 million yuan, an increase of 63.66% over the same period, significantly higher than the growth rate of the company's overall revenue. We believe that with the continuous improvement of equipment informatization level, the demand for digital analog integrated circuit products will maintain growth, and the company's digital analog integrated circuit products will continue to promote the growth of the company's performance.
The completion of Beidou's third generation networking is expected to help the company open up growth space. The company has been deeply engaged in the Beidou industry for many years, and its related products cover the whole industrial chain of "components terminal system application" of Beidou satellite navigation. From Beidou 1 to Beidou 3, the company has maintained strong product technology advantages and new product development ability. It is one of the leading enterprises in the field of Beidou navigation in China. After the completion of Beidou second generation networking in 2012, the compound growth rate of the company's Beidou products reached more than 50% from 2013 to 2015, which is significantly driven by Beidou networking. With the completion of the global networking of beidou-3 satellite navigation system in 2020, the overall development and output growth of China Spacesat Co.Ltd(600118) navigation and location service industry are obvious. According to the white paper of China Spacesat Co.Ltd(600118) navigation and positioning Association, the overall output value of China Spacesat Co.Ltd(600118) navigation and location service industry will reach 403.3 billion yuan in 2020, and the compound growth rate of output value from 2014 to 2020 will be about 20.11%. We believe that after the completion of Beidou's third-generation networking, the company's ground terminal equipment is expected to usher in rapid growth, and the company's Beidou products are expected to help the company's performance open up growth space in the future.
Investment suggestion: the company has been deeply engaged in the digital analog integrated circuit and Beidou navigation industry for many years and has strong technology accumulation. With the continuous improvement of China's equipment informatization level and the increased demand for terminal equipment brought by Beidou's third-generation networking, the company's performance is expected to continue to grow. It is estimated that the net profit of the company from 2022 to 2024 will be 220 million yuan, 310 million yuan and 420 million yuan respectively, and the PE corresponding to the current stock price will be 39, 28 and 20 times respectively. It is rated as "Buy-A" for the first time.
Risk warning: the risk that the order of digital and analog integrated circuits is less than expected; There is a risk that the demand for Beidou third generation terminal products is less than expected.
