\u3000\u3 China Vanke Co.Ltd(000002) 230 Iflytek Co.Ltd(002230) )
Event: the company announced its 2021 annual report & the first quarterly report of 2022: 1) in 2021, the company achieved a revenue of 18.314 billion yuan, a year-on-year increase of 40.61%; The net profit attributable to the parent company was 1.556 billion yuan, a year-on-year increase of 14.13%; The net profit deducted from non parent company was 979 million yuan, with a year-on-year increase of 27.54%; 2) 2022q1: the company achieved a revenue of 3.506 billion yuan, a year-on-year increase of 40.17%; The net profit attributable to the parent company was 111 million yuan, a year-on-year decrease of 20.57%; The net profit deducted from non parent company was 146 million yuan, with a year-on-year increase of 37.73%.
1. The increase in the proportion of hardware has reduced the gross profit margin and the cost rate, which proves the high-quality development of the company
The company’s gross profit margin in 2021 was 41.13%, a year-on-year decrease of 3.99pct. According to the announcement of the company’s investor exchange minutes, the decrease of the company’s gross profit margin was mainly due to the increase in the proportion of standardized hardware sales in solutions. In 2021, the material cost accounted for 55.62% of the company’s operating costs in software and information technology services, a year-on-year increase of 2.8pct. In 2021, the company’s overall expense rate was 36.12%, with a year-on-year decrease of 3.56pct. The three expense rates of sales, management and R & D all decreased. The company’s expense rate has decreased for three consecutive years since 2019, which proves the company’s high-quality development.
2. The business in the field of education has made positive progress, and the three end businesses of g / B / C go hand in hand
In 2021, the company’s revenue in the field of education was about 6.232 billion yuan, with a year-on-year increase of 48.85%. Positive progress was made in the three end businesses of g / B / C: 1) 2G: the regional individualized education solution continued to be implemented in nearly 20 cities, districts (counties) across the country; The application of intelligent marking technology in college entrance examination has expanded from 9 provinces to 12 provinces; The English listening and speaking test covers the college entrance examination in 14 provinces and cities and the middle school entrance examination in 87 prefectures and cities; 2) 2B: around the implementation of “double reduction”, layered homework has served more than 8000 schools, about 120000 teachers and nearly 4 million students; After class service business covers more than 170 districts and counties and more than 4000 schools; 3) 2c: the number of schools operating personalized learning manuals increased by 50%, the number of users increased by 40% year-on-year, and the renewal rate increased from 75% to 90%; The sales volume of C-terminal learning machine increased by 150%, and the sales volume of JD tmall Gmv and increased by 200% year-on-year.
3. The application scale of “base business” continues to expand and is optimistic about the continuous growth of the company
In 2021, the company’s “base business” took root. In addition to the smart education business, the smart city business revenue was 4.974 billion yuan, a year-on-year increase of 29.62%; The revenue of consumer business was 1.7 billion yuan, with a year-on-year increase of 46.62%, the sales volume of consumer hardware increased by 140% and Gmv increased by 152%; The revenue of smart medical business was 338 million yuan, with a year-on-year increase of 8.06%. Smart medical assistants have covered 28 provinces (autonomous regions and municipalities directly under the central government) and 284 districts and counties in China and have been applied normally; The revenue of smart car business was 449 million yuan, with a year-on-year increase of 38.92%. 7 million sets of front-end equipment were installed, more than 200 delivery models were added, more than 40 cooperative car enterprises were reached, and the fixed-point reserve increased by 90%. In 2021, the company’s “base business” accounted for more than 50% of the total revenue. We believe that the company, with AI technology as the core, has the ability of sustainable operation in many scenarios and is optimistic about the company’s sustainable growth in the future.
Profit forecast and investment suggestions: according to the adjusted profit forecast of the company’s annual report and the first quarterly report, we adjusted the company’s net profit from RMB 2.065/2.832 billion to RMB 2.072/2.881 billion in 20222023, and the net profit in 2023 is expected to be RMB 3.851 billion. The corresponding PE of the company’s net profit from 20222024 is 44.42/31.94/23.90 times of the current market value respectively, maintaining the “buy” rating.
Risk warning: the company’s business development is not as expected; Intensified market competition; The company’s performance is lower than expected; Systemic risk.
