\u3000\u30 China High-Speed Railway Technology Co.Ltd(000008) 10 Skyworth Digital Co.Ltd(000810) )
Event: the company released the first quarter report of 2022. During the reporting period, the company achieved a main business income of 2.77 billion yuan, a year-on-year increase of 24.81%, and a net profit attributable to the parent company of 208million yuan, a year-on-year increase of 33.74%, and a year-on-year increase of 228.78% after deduction of non profits, which exceeded the expectation.
Supported by the high prosperity of the industry, the business growth continued to be stable. With the development of "digital economy", the information and communication infrastructure has been continuously upgraded, and the construction of gigabit network has been started first. February 2022 6 Wuhan Department Store Group Co.Ltd(000501) 0g PON 4.5 billion yuan large single landing, previously China Telecom Corporation Limited(601728) has landed 2.4 billion yuan 10gpon equipment centralized procurement, in 2022, China's Gigabit broadband construction is accelerating, entering a period of Gigabit broadband construction, driving the industrial chain volume. After the layout of the company's broadband business in recent years, it has gradually ranked in the first camp of the industry, deeply benefited from the dividends of digital economy construction, and has a strong attribute of "stabilizing the economy".
The margin of gross profit margin has improved significantly, and the cost rate has further improved. In 2012, Q1's gross profit margin was 16.96%, with a year-on-year increase of 0.85pct and a month on month increase of 0.97pct, which eased the pressure on the cost side; The period cost was further effectively controlled. The cost rate in Q1 was 11.34%, a year-on-year decrease of 2.28pct; Meanwhile, due to changes in accounting estimates during the reporting period, the company's credit impairment loss was 515519 million yuan, compared with -40108 million yuan in the same period last year; Other income was 42.37 million yuan, compared with 278985 million yuan in the same period last year; In addition, due to the disposal of the equity of subsidiaries in the same period last year, the investment income was 954474 million yuan. Actively prepare goods and increase the pressure on short-term cash flow. Net cash flow from operating activities of Q1 company in 22 years
2.5462 million yuan, a year-on-year decrease of 88.94%, mainly due to the increase in raw material procurement and reserves during the reporting period,
Investment suggestion: we are optimistic about the continuous growth of the company's broadband business and the leading position of the traditional business of intelligent terminals. At the same time, innovative businesses such as VR are expected to enter the harvest period. We predict that the net profit attributable to the parent company will be RMB 802, 979 and 1.175 billion from 2022 to 2024, and PE will be 18, 15 and 12x, maintaining the "buy" rating of the company.
Risk warning: the risk that the global demand for TV set-top boxes is less than expected; The risk that the bidding progress of operators is less than expected; Supply chain risk; The development of VR industry is less than expected.
