\u3000\u3 China Vanke Co.Ltd(000002) 230 Iflytek Co.Ltd(002230) )
Event overview
The company issued the annual report of 2021 and the first quarterly report of 2022. 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 non net profit deducted was 979 million yuan, a year-on-year increase of 27.54%. Earnings per share increased by 37.7% from last year.
In the first quarter of 2022, 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%, which was mainly due to the company’s share holding and the recognized profit and loss of – 154 million yuan due to the fluctuation of share price. The non net profit deducted was 146 million yuan, a year-on-year increase of 37.73%, and the profitability of the company continued to increase.
Analysis and judgment:
In 2021, the revenue exceeded expectations and continued to be optimistic about the education & consumer business.
In 2021, the company’s revenue slightly exceeded our expectations, and the annual revenue was 18.314 billion yuan, a year-on-year increase of 40.61%. So far, iFLYTEK has become the only company with an average annual compound growth rate of revenue of more than 25% in the past 10 years, which is mainly due to the rapid growth of the company’s education business and consumer business, and the steady growth of smart city business.
In terms of education business, thanks to the accelerated off-site replication of the company’s 2B regional individualized education program and the continuous development of 2C personalized learning manual + learning machine, the annual revenue increased by 49% year-on-year to 6.232 billion yuan. Among them, educational products and services increased by 49.47% year-on-year, and teaching business increased by 34% year-on-year. During the reporting period, the company’s individualized education program continued to be implemented and deepened in nearly 20 cities, districts (counties). In addition, the application of the company’s intelligent marking technology in the college entrance examination has expanded from 9 provinces to 12 provinces. With the continuous deepening of off campus education and training supervision, the core position of on campus education will be further highlighted. The AI education leader Iflytek Co.Ltd(002230) Iflytek Co.Ltd(002230) .
Both open platforms and consumer businesses have achieved rapid growth:
The revenue of the open platform increased by 56% year-on-year to RMB 2.988 billion. The open platform has opened 449 AI capabilities and schemes (396 in 20 years), and the number of developers has reached 2.93 million (1.756 million in 20 years).
The rapid growth of intelligent hardware products and mobile Internet business led to a year-on-year increase of 37% in consumer business revenue. During the reporting period, the company’s sales of consumer hardware increased by 140% year-on-year and Gmv increased by 152%. The company gradually built up a Wuxi Online Offline Communication Information Technology Co.Ltd(300959) full coverage sales system: online, Jingdong Tmall dual platform GMV grew by more than 80%, tiktok and other new media channels continue to exert force; Offline, a total of 20 new direct stores have been opened in Beijing, Shanghai, Shenzhen, Hangzhou and Nanjing. The continuous growth of 2C hardware products fully shows the synchronous improvement of the company’s productization ability and large-scale promotion ability, and the new growth curve of 2C can be expected.
During this period, the cost rate improved, highlighting the scale effect, high R & D investment continued to consolidate barriers, and cash flow confirmed the high boom.
During the period of the company, the cost rate index continued to improve, highlighting the scale effect, maintaining high R & D investment and consolidating barriers. The sales expense rate, management expense rate and financial expense rate decreased by 1.3pct, 2.08pct and 0.18pct to 14.7%, 21.47% and – 0.06% respectively compared with 20 years. The company maintained high R & D investment and consolidated technical / product / platform barriers. During the reporting period, the R & D expenses increased by 28% year-on-year to 2.83 billion yuan, the R & D expense rate also increased by 3.85 PCT to 19.3%, and the number of personnel with master’s degree or above increased by 810.
During the reporting period, the cash received by the company from selling goods and providing labor services increased by 35.98% year-on-year to 17.162 billion yuan, confirming the continuous high prosperity of the company’s business. The net cash flow from the company’s operating activities decreased by 60.67% compared with last year, mainly due to the increase in cash paid for purchasing goods and receiving labor services.
AI solutions are implemented in multiple scenarios, and the business in the base area can be expected in the future.
During the reporting period, the company’s smart car, smart finance, smart medical and other businesses maintained a steady growth trend, and the business in the base area can be expected in the future. Of which:
The smart car business achieved a revenue of 450 million yuan, a year-on-year increase of 39%, 7 million sets of front-end equipment, more than 200 new delivery models, more than 40 cooperative car enterprises, and the fixed-point reserve increased by 90%; There are more than 10 million active users every month and nearly 2 billion voice interactions every year.
Smart finance business has covered banking, insurance and securities industries, with more than 2000 smart customer service, marketing and operation projects. The penetration rate of iFLYTEK AI + financial application in regional bank customers increased by more than 200%.
The general practitioner assistants of smart medical services have covered 28 provinces (autonomous regions, municipalities directly under the central government) and 284 districts and counties across the country and have been applied regularly. They have served more than 50000 grass-roots doctors and 100million residents in total, assisted grass-roots doctors in completing more than 130million standardized electronic medical records, provided more than 340million AI auxiliary diagnosis suggestions, and made more than 170000 annual value correction diagnoses.
Investment advice
Considering that the company has increased investment and consolidated competition barriers, we have adjusted our profit forecast. We expect the company to achieve revenue of 25.418/34.534/46.352 billion yuan from 2022 to 2024 (the original forecast was 24.35/32.58 billion yuan from 2022 to 2023), with a year-on-year increase of 38.8% / 35.9% / 34.2% (the original forecast was 36.6% / 33.8% from 2022 to 2023); The net profit attributable to the parent company was RMB 2.105/2.866/3.708 billion (originally predicted to be RMB 2.66/3.65 billion from 2022 to 2023), with a year-on-year increase of 35.2% / 36.2% / 29.4% (originally predicted to be 39.3% / 37.4% from 2022 to 2023); EPS is 0.91 yuan, 1.23 yuan and 1.59 yuan respectively, corresponding to the closing price of 39.6 yuan on April 21, 2022. PE from 2022 to 2024 is 43.74x/32.12x/24.83x respectively, maintaining the “buy” rating.
Risk tips
The implementation of support policies is less than expected, the company’s profits are less than expected, the entry of emerging AI manufacturers is accelerated, the competition is intensified, and the market systemic risk.
