\u3000\u3 China Vanke Co.Ltd(000002) 230 Iflytek Co.Ltd(002230) )
Event: Iflytek Co.Ltd(002230) ( Iflytek Co.Ltd(002230) . SZ) released the annual performance report of 2021 and the performance report of 2022q1 on April 22, 2022 (Beijing time).
In 2021, the company achieved a revenue of 18.314 billion yuan, a year-on-year increase of 40.61%, a net profit attributable to the parent of 1.556 billion yuan, a year-on-year increase of 14.13%, and a net profit attributable to the parent of 979 million yuan after deduction, a year-on-year increase of 27.54%. Quarter by quarter, Q4 in 2021 achieved a revenue of 7.446 billion yuan, a year-on-year increase of 29.70%, a net profit attributable to the parent of 828 million yuan, a year-on-year increase of 2.24%, and a net profit attributable to the parent of 464 million yuan after deduction, a year-on-year decrease of 32.08%.
In Q1 of 2022, the company achieved a revenue of 3.506 billion yuan, a year-on-year increase of 40.17%, a net profit attributable to the parent of 111 million yuan, a year-on-year decrease of 20.57%, and a net profit deducted from non attributable to the parent of 146 million yuan, a year-on-year increase of 37.73%.
Comments:
The annual income continued to grow, Q1 maintained rapid growth, and education, open platforms and consumers were the main growth drivers. In 2021, the company achieved a revenue of 18.314 billion yuan, a year-on-year increase of 40.61%, and 22q1 achieved a revenue of 3.506 billion yuan, a year-on-year increase of 40.17%. In 2021, by business segment, the company’s revenue in the field of education was 6.231 billion yuan, a year-on-year increase of 48.85%, and the revenue of smart city was 4.974 billion yuan, a year-on-year increase of 29.63%; In the 21st year, the revenue of open platform and consumer business was 4.688 billion yuan, with a year-on-year increase of 52.21%; The business income of operators was 1.393 billion yuan, a year-on-year increase of 26.79%; Smart car revenue was 449 million yuan, a year-on-year increase of 38.92%; Smart medical income was 338 million yuan, a year-on-year increase of 8.06%; Smart finance revenue was 197 million yuan, a year-on-year increase of 33.82%. 22q1 realized a net profit attributable to the parent company of 111 million yuan, a year-on-year decrease of 20.57%, mainly due to the company’s holding of Cambricon Technologies Corporation Limited(688256) , Three’S Company Media Group Co.Ltd(605168) and other fair value changes due to stock price fluctuations, resulting in the recognition of profit and loss of – 154 million yuan.
The gross profit rate declined slightly, increased personnel investment and focused on the long-term layout. The gross profit margin of the company in 2021 was 41.13%, with a year-on-year decrease of 3.98 PCT, and the net profit margin was 8.80%, with a year-on-year decrease of 2.27 PCT. The company’s gross profit margin in 22q1 was 40.53%, a year-on-year decrease of 1.54pct and an increase of 2.29pct compared with 21q4. The gross profit margin of education business decreased by 2.59pct, mainly due to the increase in the sales of hardware products such as learning machines, and the proportion increased; The gross profit margin of the open platform decreased by 2.87 PCT, mainly due to the increase in the proportion of advertising business with low gross profit margin; Due to the increase of orders from total integrators, the proportion of information engineering business increased, and the gross profit decreased by 6.33pct. In 2021, the base business and related businesses increased a total of 245 million R & D investment, and the overall talent reserve increased by more than 3300 people.
GBC linkage effect in the field of education is remarkable. (1) The application results of the “teaching students according to their aptitude” solution in tog region have been further replicated on a large scale. It has been continuously implemented in nearly 20 cities, districts (counties) such as Jinshui District of Zhengzhou, Wuhan Economic Development Zone, West Coast new area of Qingdao, Dadong District of Shenyang, Changchun City of Jilin Province and Yijiang District of Wuhu City. The application of intelligent marking technology in the college entrance examination has been expanded from 9 provinces to 12 provinces. The English listening and speaking test has added 4 provincial college entrance examinations and 29 Prefecture and city high school entrance examinations, covering 14 provincial college entrance examinations and 87 Prefecture and city high school entrance examinations in total; (2) Tob deepened and expanded its product application value around the school scene. In 2021, layered homework has served more than 8000 schools, about 120000 teachers and nearly 4million students, and arranged layered homework more than 60000 times. At present, iFLYTEK’s after-school service business has covered more than 170 districts and counties and more than 4000 schools; (3) The value of TOC’s AI self-learning C-end products for students continued to be verified. The number of schools operating personalized learning manuals increased by 50%, the user scale increased by 40% year-on-year, and the renewal purchase rate increased from 75% to 90%. In 2021, the sales of learning machines for C-end increased by 150%, and the sales of JD tmall Gmv and increased by 200% year-on-year.
The number of open platform developers has increased rapidly, and the marketing ability of consumer channels has improved significantly: in 21 years, the revenue of open platform and consumer business was 4.688 billion yuan, with a year-on-year increase of 52.21%, accounting for 25.59% of the total revenue, mainly due to (1) the AI marketing business based on iFLYTEK’s open platform helped the developer partners improve the commercial realization value, and the revenue increased by 55.55% year-on-year; (2) The revenue of intelligent hardware increased by 41.63% year-on-year, and the sales of recording pens, office books and translators increased; (3) Mobile Internet products and services increased by 61.86% year-on-year. In 2021, the total number of monthly active users of iFLYTEK input method increased by 20%, and the number of monthly voice calls increased by 30%. In terms of platform, iFLYTEK open platform has opened 449 AI capabilities and schemes to the public, and the number of developers has reached 2.93 million; In terms of consumers, the launch and iteration of new intelligent hardware products around the AI + office scene further improved the brand influence of consumers. The channel marketing ability for consumers was significantly improved, and the sales volume of consumer hardware increased by 140% year-on-year.
The base business accounts for more than 50%, and goes deep into the downstream core links to establish long-term advantages. In 2021, the company’s “base business” accounted for more than 50% of its total revenue. The evaluation criteria of the business in the base area are the benign dependence of users, long-term operation ability, sustainable growth potential and industry demonstration value. The businesses in the base areas include education base areas (teaching students in accordance with their aptitude, personalized learning manual, English listening and speaking test, learning machine B + C), consumer base areas (online marketing position, AI Marketing), medical base areas (general practice intelligent medical assistant, family doctor assistant, etc.), smart city base areas (Jianghuai big data general platform, Anhui Affairs Office, strategic cooperation city), etc. We believe that at present, the downstream of AI technical services needs deep cultivation in the industry. AI technical experts cooperate with industry experts and focus on industry application scenarios will be the priority strategy in the current market environment; Go deep into the core links of the industry, master the know-how of the industry, have customer stickiness, occupy high-quality data, and form a competitive barrier Iflytek Co.Ltd(002230) over the years, the continuous layout of business in the base area has initially formed barriers.
Profit forecast and investment rating: Iflytek Co.Ltd(002230) is the leading manufacturer in the field of AI technology application in China. Through AI + education, AI + office, AI + medical treatment, AI + smart city, AI + automobile and other means, it is deeply rooted in the downstream to provide product technology and Solutions. In the field of education, office and other application scenarios, the market share is significantly ahead, with certain target scarcity. Wind unanimously expects the total revenue of Iflytek Co.Ltd(002230) 22-24 years to be RMB 23905 / 31334 / 42.461 billion respectively, and the net profit attributable to the parent company to be RMB 2252 / 2993 / 3524 million respectively. The current market value corresponds to pe40x / 30x / 25X, so it is recommended to pay close attention.
Risk factors: the C-end layout is not as expected; Intensified market competition; The risk of slow market expansion outside the province; The risk of brain drain; Industry policy supervision risk;
