\u3000\u3 China Vanke Co.Ltd(000002) 230 Iflytek Co.Ltd(002230) )
Event: the company released the annual report of 2021 and the first quarterly report of 2022. In 2021, the company realized an operating 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%. In 2022q1, the company realized an operating revenue of 3.506 billion yuan, a year-on-year increase of 40.17%; The net profit attributable to the parent company was 1.11 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%, which was basically in line with market expectations.
Key investment points
Continued high growth in revenue: the company's revenue in 2021 exceeded 18.3 billion yuan, a year-on-year increase of 40.61%, and the net profit attributable to the parent company was 1.556 billion yuan, a year-on-year increase of 14.13%. The decline of net profit margin is mainly due to the decline of the company's overall gross profit margin 4pct. In terms of business, the company's revenue of educational products and services in 2021 was 6.007 billion yuan, with a year-on-year increase of 49.47% and a gross profit margin of 51.66% (year-on-year -2.59pct); The revenue of open platform business was 2.988 billion yuan, with a year-on-year increase of 55.55% and a gross profit margin of 21.21% (year-on-year -2.87pct); The revenue of information engineering business was 2.851 billion yuan, with a year-on-year increase of 60.74% and a gross profit margin of 20.51% (year-on-year -6.33pct). In 2022q1, the company achieved a 40.17% increase in operating revenue, mainly due to the increase in education and consumer business income; The net profit attributable to the parent decreased by 20.57% year-on-year, mainly due to the change in fair value caused by the fluctuation of Cambricon Technologies Corporation Limited(688256) , Three'S Company Media Group Co.Ltd(605168) and other stock prices held by 2022q1 company, and the recognized profit and loss was -154 million yuan.
The results of g / B / C-end linkage of "base business": in terms of smart education business, the application results of "teaching students according to their aptitude" solution in g-end region continued to be implemented in nearly 20 cities and districts (counties) in 2021. The layered operation of b-end has served more than 8000 schools, about 120000 teachers and nearly 4 million students, and arranged layered operation for more than 60000 times. In 2021, the sales of learning machines for C-end increased by 150%, The number of users of personalized learning manuals increased by 40% year-on-year, and the renewal rate increased from 75% to 90%. In terms of smart medical business, general practitioner assistants have covered 28 provinces (autonomous regions and municipalities directly under the central government) and 284 districts and counties in China in 2021, and have been applied normally.
"Systematic innovation" injects new growth momentum: in early 2022, the company officially released the "iFLYTEK Super Brain 2030 plan", which plans to build a man-machine cooperation and self evolving complex intelligent system based on cognitive intelligence, and has formulated a clear technology and product development route. In the future, the company will further expand the field of AI research on the basis of deepening the application of voice intelligence in education, medical treatment, finance, automobile, operator and other industries, Launch new products such as pet toys, Siasun Robot&Automation Co.Ltd(300024) , virtual human, etc., open up the whole chain of product application, and provide new driving force for the sustainable growth of the company.
Profit forecast and investment rating: considering that the company continues to increase various inputs, we will reduce EPS from 1.11/1.50 yuan to 0.89/1.16 yuan in 20222023, and it is expected that EPS will be 1.47 yuan in 2024. The current market value corresponds to 43 / 33 / 26 times of PE in 20222024. The company's "base" business has entered the dividend cashing period in many industries, and the "systematic innovation" business will continue to bring new growth momentum and maintain the "buy" rating.
Risk warning: R & D progress is not as expected; Regulatory policy risk; Industry competition intensifies.
