\u3000\u3 China Vanke Co.Ltd(000002) 230 Iflytek Co.Ltd(002230) )
The performance was in line with expectations, and the revenue maintained rapid growth. The company achieved a revenue of 18.31 billion yuan in 21 years, with a year-on-year increase of 40.6%, and the net profit attributable to the parent was 1.56 billion yuan, with a year-on-year increase of 14.3%, deducting 980 million yuan not attributable to the parent, with a year-on-year increase of 37.5%. From the revenue side, the education business, information engineering, open platform and consumer business grew rapidly, with the growth rates of 48.8%, 60.7% and 52.2% respectively. Among them, the education business has maintained a high growth trend for two consecutive years. From the profit side, the company’s overall gross profit margin was 41.1%, a year-on-year decline of 4 percentage points, mainly due to the decline of 4, 6.3 and 3 percentage points respectively in the gross profit margin of education, information engineering and open platform (the total revenue of the three accounted for 66%). The rates of sales / management / R & D / finance expenses decreased by 1.3%, 0.6%, 1.5% and 0.2% respectively, and the expenses were well controlled during the period. The company’s inventory reached 2.43 billion yuan in 21 years, maintaining a high level, most of which are contract performance costs. It is verified that the business prosperity of the company is high. At the same time, the contract amount of the company’s unrecognized revenue is 5.38 billion yuan, of which 3.43 billion yuan will be recognized in 22 years. Most of the non recurring profits and losses are government subsidies. Therefore, when the period expenses are relatively stable, the overall gross profit margin has a great impact on the deduction of non attributable net profit.
The personnel growth is arranged in advance, and the R & D investment maintains the leading technology. On the premise of the continuous promotion of the business in the base areas, the company arranged the operation and resident personnel in advance, with an increase of more than 3300 people throughout the year, which put pressure on the cash flow in the short term. In 2021, the operating cash flow inflow was 18.62 billion yuan (+ 35.1%), and the net operating cash flow was 890 million (- 60.7%), which was mainly due to the increase of the company’s personnel, resulting in the increase of 76.7% of the cash outflow for labor payment. At the same time, the company maintained a high investment in R & D, with an investment of 2.94 billion yuan in 2021, a year-on-year increase of 21.5%. During the year, the company undertook a number of national and provincial research topics and won more than 10 International Ai awards, which laid a solid foundation for the company’s global leadership in AI technology.
Platform + track continues to advance, and the education business is growing rapidly. The company adheres to the development mode of AI platform + track. During the year, the AI platform has opened 449 AI capabilities to the outside world, bringing together 2.93 million developers. At the same time, the company has released the open platform 2.0 strategy, and will jointly build a win-win ecosystem with industry leaders in the future. In all tracks, the company’s education business is commendable. Among them, the regional individualized education solution has been continuously implemented in more than 20 cities and counties. English listening and speaking has covered the college entrance examination in 14 provinces and cities and the high school entrance examination in 87 prefectures and cities. The after-school service business covers nearly 4000 schools, and the user scale of learning manuals has increased by 40%. In the future, driven by the double reduction policy of education, the education business is expected to blossom all over the country.
Risk warning: industry competition intensifies; Policy risk; The expansion of education business is less than expected.
Investment advice: maintain the “buy” rating.
It is estimated that the net profit attributable to the parent company from 2022 to 2024 will be RMB 2.165/29.96/4.086 billion, with a year-on-year growth rate of 39.1/38.4/36.4%; Diluted EPS = 0.93/1.29/1.76 yuan, and the current share price corresponds to PE = 44.6/32.3/23.7x. The company is a leading enterprise in artificial intelligence and maintains a “buy” rating.
