\u3000\u3 China Vanke Co.Ltd(000002) 925 Xiamen Intretech Inc(002925) )
Event:
The company released the annual report of 2021 and the first quarterly report of 2022: the annual revenue of 2021 was 7.061 billion yuan, a year-on-year increase of 32.79%; The net profit attributable to the parent company was 1.093 billion yuan, a year-on-year increase of 6.68%; The net profit deducted from non parent company was 959 million yuan, with a year-on-year increase of 6.00%; The basic earnings per share is 1.40 yuan. In the first quarter of 2022, the revenue reached 1.292 billion yuan, a year-on-year decrease of 20.60% and a month on month decrease of 10.98%; The net profit attributable to the parent company was 155 million yuan, a year-on-year decrease of 38.98% and a month on month decrease of 24.32%.
Guoyuan view:
The strong overseas demand for products gave birth to the trend of high growth, and the performance of 22q1 declined slightly. Thanks to the strong demand for household engraving machines, consumables and other related products in the overseas market and the rapid growth of new businesses including automotive electronics, the company achieved rapid growth in performance in 2021, with an annual revenue of 7.061 billion yuan (YoY + 32.79%); Disturbed by the epidemic situation and influenced by the high base in the same period last year, the overall performance of 2022q1 declined. In a single quarter, 2021q1-4 company achieved revenue of RMB 1.626/20.27/19.57/1.451 billion respectively, a year-on-year increase of + 120.01% / + 108.38% / + 18.64% / – 25.82%; The net profit attributable to the parent company was RMB 256 / 314 / 317 / 205 million respectively, with a year-on-year increase of + 52.56% / + 42.14% / + 6.19% / – 39.03%. The pressure on the profit side of 21h2 is mainly due to adverse factors such as exchange rate and price fluctuation of raw materials. In terms of splitting products, the innovative consumer electronics business achieved a revenue of 4.305 billion yuan, with a year-on-year increase of 34.65%. It is the product of household engraving machine series, and the business showed a high growth trend due to the strong overseas demand; The annual revenue of intelligent control component products was 1.079 billion yuan (YoY + 12.94%), mainly due to the shortage of chip supply in the second half of the year; Revenue from air purifier and environmental health products (1.9 billion yuan + 4.7 billion yuan); Automotive electronic products grew rapidly, with a revenue of 236 million yuan, a year-on-year increase of 41.81%, mainly due to the rapid growth of sales revenue of electronic anti dazzle mirror and skylight memory module.
Multiple adverse factors put pressure on profitability and continued to increase product R & D and innovation
Affected by multiple adverse factors such as repeated outbreaks, exchange rate fluctuations, rising raw material prices and chip shortage, the company’s profitability is under pressure. In 2021, the company’s comprehensive gross profit margin decreased by 5.78 PCTs to 27.97%, and the comprehensive net profit margin decreased by 3.82 PCTs to 15.48%. In terms of expenses during the period, the sales expense ratio / management expense ratio increased by 0.29pcts/0.62pcts to 1.27% / 4.09% year-on-year, and the financial expense ratio decreased by 1.24pcts to 0.45%. In terms of R & D investment, the R & D investment reached 380 million yuan (YoY + 24.97%) in 2021, and the R & D expense rate decreased slightly by 0.34 PCTs to 5.38%. At the same time, the proportion of R & D personnel of the company has been maintained at more than 20%.
Profitability is expected to marginal repair, medium and long-term development potential remains unchanged
In recent years, the company has continued to explore the fields of industrial control, vehicle regulation, medical treatment and high-end food machinery. On the basis of deeply binding key customers Cricut, PMI and Logitech, the company has actively explored other customer groups such as Bosch, which is expected to become a new performance growth point in the future. In the short term, with the gradual stabilization of the epidemic in the future, the improvement of the superimposed exchange rate and the marginal improvement of the supply of raw materials, sea freight and chips, the profitability of the company is expected to be marginal repaired; In the medium and long term, the company has deepened the implementation of the big whale group strategy and udm2 with the support of R & D and innovation enabled products and diversified product matrix 0 strategy, the company’s growth potential will not decrease.
Investment advice and profit forecast
The company is a product Incubation Platform Enterprise in the field of innovative consumer electronics + Internet of things. The trend of main products is good, and the research and development of new products has also entered an upward period. It is expected to continue steady development in the future. We adjusted the profit forecast. It is expected that the company will achieve revenue of RMB 8.168/10.476/13.491 billion, net profit attributable to the parent company of RMB 1.231/14.95/1.914 billion, EPS of RMB 1.57/1.91/2.44 and PE of 13.95/11.48/8.97 times respectively from 2022 to 2024, maintaining the “buy” rating.
Risk tips
The incubation of new products is not as expected; The exchange rate fluctuates more than expected; The price fluctuation of raw materials exceeded expectations.
