\u3000\u3 Guocheng Mining Co.Ltd(000688) 039 Hangzhou Arcvideo Technology Co.Ltd(688039) )
Event overview
On the evening of April 15, 2022, Hangzhou Arcvideo Technology Co.Ltd(688039) released its annual report. In 2021, the company achieved an operating revenue of 418 million yuan, a year-on-year increase of 14.30%, and a net profit attributable to the parent company of 613475 million yuan, a year-on-year decrease of 40.34%; It is proposed to distribute a cash dividend of 2.50 yuan (including tax) to all shareholders for every 10 shares.
The gross profit margin remained at a high level, and the R & D expenses increased significantly
According to the 2021 annual report, the company's overall gross profit margin was 48.30%, a year-on-year decrease of 1.34 PCT; In terms of products, the revenue growth of video solutions, pan security products and technical service products during the reporting period was - 6.11%, 79.47% and 50.05% respectively, and the gross profit margin was 52.64%, 53.90% and 7.04% respectively, with changes of -3.57pct, 15.33pct and -7.14pct respectively. In terms of expense rate, the R & D rate was 21.75%, increased by 4.83 PCT compared with the same period last year, the sales rate was 8.29%, increased by 1.72 PCT compared with the same period last year, the management rate was 7.36%, decreased by 0.86 PCT compared with the same period last year, and the financial expense rate was - 4.69%, compared with - 4.66% in the same period last year. In 2021, the company's R & D expenses increased significantly. The company increased R & D investment and talent reserve. During the reporting period, 78 invention patents and 70 software copyrights were newly applied for.
The revenue of Pan security business has increased significantly, and the on-board cockpit products are expected to bring performance increment
In 2021, the company's Pan security business achieved a revenue of RMB 123million, a year-on-year increase of 79.47% and a year-on-year increase in gross profit margin of 15.33pct. At present, focusing on the construction of high-speed video and super city wide digital surveillance technology, the company has continued to focus on the construction of high-speed video and super city wide digital surveillance technology, focusing on the construction of high-speed video and super city wide intelligent data, and has been engaged in the construction of high-speed video and super City wide digital surveillance technology, Meet the business needs of massive edge videos in Pan security and multi industries that can be returned, seen clearly, stored and analyzed. According to the disclosure of the annual report, the company increased R & D investment in 2021 and cut into the field of video applications such as on-board intelligent entertainment cockpit products. With the rapid development of the scale of intelligent Internet connected vehicles, the corresponding vehicle intelligent audio-visual consumption industry is rising rapidly. Intelligent entertainment cockpit products are expected to bring considerable performance increment to the company.
Avs3 end-to-end products first exhibition in China, 8K codec landing service Winter Olympics
The company exhibited the avs3 end-to-end live broadcasting system for the first time in the industry, helping Suzhou cable avs38k live broadcasting succeed and complete the 8K live broadcasting of the first football match. The company has deeply participated in the construction of ultra-high definition channels. By the end of 2021, the company has participated in the construction of six of the eight 4K ultra-high definition channels approved by broadcasting institutions at all levels across the country. The company deeply supports the launch of cctv-8k UHD channel and Olympic Channel (cctv-16) of China Central Radio and Television Corporation. The company's 8K codec products were successfully applied in major activities such as the 2022 China Central Television Spring Festival Gala, the Beijing Winter Olympics and the Shaanxi national games. At the same time, the company is a joint research and development cooperation unit of "5g high-tech video sports integration and Innovative Application Laboratory of the State Administration of radio and television".
Investment advice: maintain the "buy" rating
Combined with the annual report data, we adjusted the company's forecast of revenue of RMB 700 / 1057 / (unpredicted) million to RMB 539 / 683 / 828 million from 2022 to 2024, adjusted the forecast of net profit attributable to parent company of RMB 184 / 271 / (unpredicted) million from 2022 to 2024 to RMB 138 / 176 / 215 million, and adjusted eps2 30 / 3.38 / (not predicted) yuan is predicted to 1.71/2.19/2.67 yuan, corresponding to the closing price of 40.31 yuan / share on April 19, 2022, and PE is 24, 18 and 15 times respectively. The short-term performance of the company is slightly lower than the previous expectation, but it does not affect our optimism about the long-term value of the company and maintains the "buy" rating.
Risk tips
The development of Pan security business is less than expected, the development of ultra-high definition video industry is less than expected, and the localization process of video coding and transcoding is less than expected.
