\u3000\u3 China Vanke Co.Ltd(000002) 230 Iflytek Co.Ltd(002230) )
Core view
Event: on the evening of April 21, 2022, the company disclosed the annual report of 2021 and the first quarterly report of 2022. In 2021, the company realized an operating revenue of 18.314 billion (+ 40.61%), a net profit attributable to the parent company of 1.556 billion (+ 14.13%), and a net profit deducted of 979 million (+ 27.54%). In 2022q1, the company realized an operating revenue of 3.506 billion (+ 40.17%), a net profit attributable to the parent company of 111 million (- 20.57%), and a net profit of 146 million (+ 37.73%).
The company’s performance met expectations and the gross profit rate decreased slightly. In 2021, the company achieved an annual operating revenue of 18.314 billion yuan (+ 40.61%), in line with market expectations, of which Q4 achieved a revenue of 7.446 billion yuan (+ 29.70%). The overall gross profit margin of the company is 41.13% (-3.99 PCTs), of which the gross profit margin of educational products and services is 51.66% (-2.59 PCTs), mainly due to the increase in the proportion of learning machines and other hardware products; The gross profit margin of open platform business was 21.21% (-2.87 PCTs), which was mainly due to the increase in the proportion of advertising business and the decrease in gross profit margin; The gross profit margin of information engineering business is 20.51% (-6.33pcts). The rates of sales, management and R & D expenses of the company are 14.70%, 6.02% and 15.45% respectively, which are lower than that in 2020, reflecting the good cost control ability of the company. In 2021, the company’s personnel scale increased by 3301, laying a more solid foundation for the improvement of the company’s profitability in the next stage, the enhancement of the position of industrial leader and the guarantee of sustainable development. 2022q1 company continued its high growth, which is also the result of the company’s continuous increase in investment.
In terms of smart education, the company’s regional “teaching students according to their aptitude” solution is further replicated on a large scale, and the value of C-end products is continuously verified. In the field of education, the company achieved a revenue of 6.232 billion yuan in 2021, with a year-on-year increase of about 49%, continuing the high growth trend. 1> In terms of g-end, the company’s comprehensive solution of teaching students according to their aptitude has been continuously implemented in nearly 20 cities, districts (counties) across the country, and its application has been deepened. The application of intelligent marking technology in the college entrance examination has expanded from 9 provinces to 12 provinces; 2> In terms of end B, the company has deepened and expanded the product application value around the school scene, in which layered operation has served more than 8000 schools, and after-school service business has covered more than 170 districts and counties and more than 4000 schools; 3> In terms of C-end, the company’s personalized learning manual can save students nearly 60% of invalid learning time, and the average problem-solving rate reaches more than 80%. In 2021, the number of schools operated by the company’s individual books increased by 50%, the scale of users increased by 40% year-on-year, and the renewal rate increased from 75% to 90%; Learning machine sales increased by 150%, and JD tmall Gmv and sales increased by 200% year-on-year.
The company’s “base business” is deeply rooted and its application scale continues to expand. In 2021, the revenue growth of the company’s “base business” reached 47%, accounting for more than 50% of the company’s total revenue, and many business lines also made breakthroughs. In terms of smart medical business, the company achieved a revenue of 338 million (+ 8.06%), and the general practitioner assistant has covered 28 provinces (autonomous regions and municipalities directly under the central government) and 284 districts and counties in China and has been applied normally; In terms of smart city business, the company achieved revenue of 4.974 billion (+ 29.62%). The “smart Super Brain” business has been implemented in Tongling, Anhui, Hefei, Tianjin, Changchun, Jilin, Luohe, Henan, Tongchuan, Shaanxi, Wuhai, Inner Mongolia and other places; In terms of open platform and consumer business, the company achieved revenue of 4.687 billion (+ 52.19%), of which iFLYTEK development platform has opened 449 AI capabilities and schemes to the outside world, bringing together 2.93 million developers, focusing on enabling 18 industries such as finance, agriculture and energy; In terms of smart car business, the company achieved revenue of 449 million (+ 38.92%), achieved front loading of 7 million sets throughout the year, added more than 200 delivery models, reached more than 40 cooperative car enterprises, and the fixed-point reserve increased by 90%.
Profit forecast and investment suggestions
According to the company’s annual report of 2021 and the first quarterly report of 2022, we believe that the company’s overall business will maintain a rapid growth trend, and the gradual stability of product and business structure will also maintain a stable level of the company’s gross profit margin in the future. It is predicted that the company’s earnings per share in 20222024 will be 0.92, 1.21 and 1.56 yuan (originally predicted to be 1.12 and 1.52 yuan in 22-23 years). With reference to the 50 times P / E ratio given by comparable companies in 2022, the corresponding target price is 46.00 yuan, Maintain the overweight rating.
Risk tips
Market competition intensifies and the business expansion of some tracks is less than expected.
