\u3000\u3 China Vanke Co.Ltd(000002) 841 Guangzhou Shiyuan Electronic Technology Company Limited(002841) )
Performance review
On April 19, the company released its 2021 annual report, which realized a revenue of 21.226 billion yuan in 21 years, a year-on-year increase of 23.9%; The net profit attributable to the parent company was 1.699 billion yuan, a year-on-year decrease of 10.65%; The net profit deducted from non parent company was 1.468 billion yuan, a year-on-year decrease of 17.08%, and the performance was basically in line with expectations.
Business analysis
Overseas business is growing rapidly, and the price rise of raw materials affects the gross profit margin. During the reporting period, the company achieved steady growth in revenue, including 5 billion yuan of overseas business, a year-on-year increase of 76.24%. In terms of products, the revenue of TV board business is basically the same as that of last year. The overall interactive tablet business increased by 37% year-on-year. In terms of new business, the company’s LED display business revenue increased by 50% year-on-year, and the domestic appliance business increased by 122.80% year-on-year. Due to the fluctuation of raw material prices of “lack of core and screen” in the upstream, the gross profit margin of the company during the reporting period decreased by 1.17pp compared with 20 years, but the overall impact has been gradually alleviated. The price of large-size LCD panel has dropped in the middle of 21 years, and the gross profit margin of 21h2 increased by 1.47pp compared with 21h1. The proportion of high gross profit products such as interactive tablet and new business will increase, and the overall gross profit margin of the company will show an upward trend.
Increase investment in personnel, R & D and marketing, and put pressure on profits in the short term. During the reporting period, the company implemented the equity incentive plan, and the share based payment fee increased by 166 million yuan year-on-year; The level of social security payment was restored, and the number of marketing and technical personnel increased, with a year-on-year increase of 107 million yuan in social security expenses; Increase R & D investment and increase R & D expenses by 284 million yuan; We accelerated market development and brand promotion, increased advertising expenses by 69.11 million yuan, and the overall sales / R & D / management expense ratio of the company increased by 0.57pp/0.33pp/0.59pp year-on-year. The net profit of 21 years was under pressure, and the net profit margin decreased by 3.13pp year-on-year. We are optimistic about the 22-year profit improvement opportunity brought by the increase of the company’s gross profit margin and the leading scale effect.
The non-public offering project has been approved to enhance its strength and is optimistic about the intelligent display interactive dragon hair exhibition for a long time. The company’s non-public project was approved on April 6, raising nearly 2 billion yuan for the interactive intelligent display and control product project for 36 months, which is expected to enhance the company’s strength in the interactive tablet business. In the past 21 years, the global market share of the company’s TV board is 31.57%, the market share of educational tablet products in shivo China is 47.5%, and the market share of maxhub enterprise service tablet is 27.5%. All of them are in a leading position. The company’s new business of white electricity, led and other components is expected to become the second growth curve, and the focus of overseas business will open new growth space for the company.
Profit adjustment and investment suggestions
Combined with the latest performance of the company, we expect the company’s operating revenue in 22-24 years to be 257 (+ 12.72%) / 315 (+ 21.15%) / 39.1 billion yuan, and the net profit attributable to the parent company to be 22.58 (+ 12.39%) / 27.94 (+ 6.8%) / 3.456 billion yuan, corresponding to pe20x / 16x / 13X, maintaining the “buy” rating.
Risk tips
The demand for TV boards continued to decline; The competition of interactive tablet is intensified; New business expansion was less than expected.
