\u3000\u3 China Vanke Co.Ltd(000002) 841 Guangzhou Shiyuan Electronic Technology Company Limited(002841) )
Event overview: on April 19, 2022, the company released its 2021 annual report, realizing an operating revenue of 21.226 billion yuan, a year-on-year increase of 23.91%; 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%.
The overall performance was in line with expectations, and the revenue and cash flow achieved good growth
In the 21st year, the company achieved a revenue of 21.226 billion yuan and a net profit attributable to the parent company of 1.699 billion yuan, both better than the performance express data (revenue of 21.222 billion yuan and net profit attributable to the parent company of 1.686 billion yuan), of which the revenue broke the 20 billion yuan mark for the first time, with an increase rate of 23.91% (the revenue growth rate in 19 / 20 years was only 0.41% / 0.45%), and the revenue returned to the fast lane of growth; The annual operating net cash flow was 2.702 billion yuan, a year-on-year increase of 36%, and the operating quality was significantly improved.
Profit pressure caused by rising prices of raw materials, structural changes in expenses and other factors
1) the overall gross profit margin of the company in the 21st year was 25.38%, down 1.17pct year-on-year, mainly due to the shortage of key materials such as LCD panels and chips in the first half of the year, the rise in the price of raw materials, the lag in the price adjustment of downstream machines, and the gross profit margin was slightly under pressure. The situation has improved in the second half of the year, and the gross profit margin of Q3 / Q4 has recovered from 23.63% of Q1 to around 26%. In the past 22 years, the panel price has dropped significantly, and the shortage of chips has also eased. The proportion of screen display products with high gross profit has gradually increased. We believe that the overall gross profit margin is expected to recover further.
2) the short-term structural change of expenses also has an impact: on the sales side, maxhub brand accelerated its penetration from the first and second tier cities to the third and fourth tier cities, and further strengthened the promotion and online marketing. The investment in advertising products increased by 70 million yuan, and the sales expense rate increased by 0.57 PCT to 6.46% year-on-year; On the management side, mainly due to the provision of 150 million yuan of equity incentive fees in 21 years, the management fee rate increased by 0.59 PCT to 4.61% year-on-year; On the R & D side, the annual R & D investment was 1.16 billion yuan (a net increase of 280 million yuan). The product R & D of 8K LCD main control board card and household appliances business has achieved initial results, and the R & D expense rate increased by 0.33 PCT to 5.48% year-on-year respectively.
There is a strong demand for interactive intelligent flat panel, the LCD main control board is full of toughness, and the overseas and innovative business is growing rapidly
1) thanks to the high demand of education informatization and enterprise service market, the revenue of interactive intelligent tablet in 21 years was 10.931 billion yuan, a year-on-year increase of 36.99%. Among them, the education business achieved a revenue of 6.842 billion yuan, with a year-on-year increase of 20.53%. According to Dixian consulting, Xiwo education brand accounted for 47.5% of China’s ifpd City, ranking among the industry leaders for ten consecutive years. Business services business achieved a revenue of 1 billion 741 million yuan, up 25.25% over the same period last year. According to Dexian consulting, MAXHUB Chinese mainland conference market share reached 27.5%, and maintained the market for five consecutive years.
2) rapid growth of overseas business and innovation business.
In terms of overseas business, the company increased its investment in distance education and conference products and technologies, continued to enrich and improve its product line, released a new series of interactive intelligent tablets ranging from 55 inch to 98 inch, actively launched new UC audio and video products, and released 43 inch to 86 inch new commercial pure display products. In 21 years, the revenue of overseas interactive intelligent tablet and other terminal products was 4.026 billion yuan, with a year-on-year increase of 95.55%, of which the revenue of main product interactive intelligent tablet was 3.805 billion yuan, with a year-on-year increase of 94.87%, and the revenue of new products such as digital signs and conference surroundings was 175 million yuan, with a year-on-year increase of 116.43%. According to Dixian consulting, the ifpd penetration rate of education and conference market is still low in the world (14% and 10% respectively), and the market space is broad. In terms of innovative business, the company continued to increase its R & D and marketing investment in the field of LED display. In 21 years, the LED display business achieved a revenue of 475 million yuan, a year-on-year increase of more than 50%, of which Xi’an Qingsong photoelectric achieved a revenue of 396 million yuan, a year-on-year increase of 64.90%.
3) the product structure of component business is continuously optimized, and the LCD main control board card is full of toughness. In the past 21 years, due to the impact of weak consumption, rising prices of raw materials and repeated epidemics, the global TV shipment fell by 6.2% year-on-year (ovicloud data). The company timely adjusted the product layout and increased the proportion of products in 4K and smart TV fields. The annual LCD TV main control board shipment reached 67.72 million, accounting for 32% of the global market (ovicloud data), of which the smart TV main control board shipment accounted for 66.88%, up nearly 8pct year-on-year; In the whole year, the company’s LCD main control board and other related businesses achieved a revenue of 7.072 billion yuan, basically the same year-on-year, reflecting the company’s product competitiveness as an industry leader. Among them, the LCD main control board achieved a revenue of 6.208 billion yuan, a slight decrease of 2.38% year-on-year; In the direction of new products, IOT modules and projection boards achieved a revenue of 293 million yuan, a year-on-year increase of 49%; The revenue of household electrical appliances business was 505 million yuan, a year-on-year increase of 122.80%.
Set to increase by 2 billion, prepare to build an intelligent manufacturing base and strengthen the global competitiveness of leading enterprises
According to the announcement of the company, the company plans to raise no more than 2095494400 yuan to invest in the construction project of intelligent manufacturing base of interactive intelligent display and control products. We believe that this move is conducive to building an industry-leading intelligent manufacturing benchmark production line, achieving higher quality and higher level of product delivery, further strengthening the company’s industry-leading position and improving global competitiveness. The project is expected to achieve a revenue of more than 5 billion yuan when it reaches production (2026).
Investment suggestion: educational informatization and mixed office further stimulate the demand for intelligent interactive tablets. The company is located in a track with low penetration, high scenery and broad growth space. It is suggested to wait for the turning point of the company’s profit. It is estimated that the net profit attributable to the parent company from 2022 to 2024 will be RMB 2.253/2.820/3.317 billion respectively, the PE multiple corresponding to the current market value is 20x / 16x / 14x, and the valuation center of the company in recent five years is 41x. Maintain a “recommended” rating.
Risk tip: the demand for intelligent interactive tablet is less than expected; Price fluctuation of raw materials; Overseas business expansion was less than expected.
