\u3000\u30003 Midea Group Co.Ltd(000333) 00033)
Event overview
The company released the first quarterly report of 2022. During the reporting period, the company achieved a revenue of 515 million yuan, a year-on-year decrease of 2.9%; The net profit attributable to the parent company was 111 million yuan, a year-on-year decrease of 34%; Non net profit deducted was 108 million yuan, a year-on-year decrease of 36%. The gross profit margin of the company increased by 0.24pct to 83.98%. The basic earnings per share of the company was 0.21 yuan, a year-on-year decrease of 34%.
Analysis and judgment:
Value added telecom services maintained steady growth, and fund consignment declined due to the impact of the market.
In the first quarter of 2022, the equity market performed poorly, but the daily turnover of the two cities still exceeded trillion, and the trading sentiment was still. During the reporting period, the company’s contract liabilities increased by 104 million yuan over the beginning of the year, with a month on month increase of 9.96%. The company’s value-added telecom business maintained a steady growth, and we are optimistic about the future valuation repair. However, in the first quarter, the scale of new funds in the market decreased significantly. The total scale of funds raised was only 273.8 billion yuan, a decrease of 74% compared with 21q1, which led to the poor performance of the company’s fund consignment business. Specifically, the company’s other payables decreased from 464 million yuan in 21q1 to 310 million yuan, a year-on-year decrease of 33.32%.
R & D investment continues to increase, and the increase of employee salary affects cash flow.
The company continued to optimize expenses, and the sales expenses during the reporting period decreased by 11.68% year-on-year to 71.64 million yuan. In addition, the company continues to maintain high R & D investment in the field of artificial intelligence and explore new profit growth points in many fields. The R & D expenses of 22q1 increased by 47.81% year-on-year to 261 million yuan, and the R & D expense rate increased by 17.39 PCT to 50.7% compared with 21q1. Due to the increase of personnel, especially R & D personnel, the company’s operating net cash flow decreased by 52.79% year-on-year to 89.43 million yuan. We believe that the company firmly implements the allinai strategy, continuously tamps and widens the moat in the field of financial technology while providing customers with better product experience, and is optimistic about the future valuation.
Investment advice
Considering the large fluctuations in the equity market since the beginning of the year, we adjusted the profit forecast. We expect the company to achieve operating revenue of RMB 3.141/38.25/49.13 billion from 2022 to 2024 (the original forecast was RMB 4.63/60.2/7.83 billion), with a year-on-year increase of – 10.5% / 21.8% / 28.5% (the original forecast was 32% / 30% / 30%) respectively; From 2022 to 2024, the net profit attributable to the parent company was RMB 1.692/2.122/2.727 billion (originally predicted to be RMB 2.548/33.37/4.357 billion), with a year-on-year increase of – 11.5% / 25.4% / 28.5% (originally predicted to be 33% / 31% / 30.6%); From 2022 to 2024, EPS was 3.15/3.95/5.07 yuan (originally predicted to be 4.7/6.2/8.1 yuan), and PE corresponding to the closing price of 72.19 yuan on April 26, 2022 was 23x / 18x14x respectively, maintaining the “buy” rating.
Risk tips
Industry competition intensifies; The implementation of financial science and technology innovation policies was less than expected.
