\u3000\u300 Shenzhen Zhenye(Group)Co.Ltd(000006) 3 Zte Corporation(000063) )
Event: on the evening of April 25, the company released the first quarter report of 2022, with a revenue of 27.93 billion yuan, a year-on-year increase of 6.4%, a net profit attributable to the parent of 2.22 billion yuan, a year-on-year increase of 1.6%, and a deduction of non net profit of 1.95 billion yuan, a year-on-year increase of 117.1%. The overall operation quality of the company has improved significantly.
Overcoming the challenges of complex environment and epidemic situation, the three business segments have achieved growth. In the first quarter, the company continued to practice its own positioning as a "road builder of digital economy", deeply focused on ICT infrastructure and "big terminal" products, and continuously improved the company's operation quality and efficiency. Under the dual challenges of the external complex environment and covid-19 epidemic, the company gives full play to the advantages of digital cloud, upgrades the remote office and customer service environment supporting tens of thousands of employees around the world, adopts Wuxi Online Offline Communication Information Technology Co.Ltd(300959) collaborative office, actively cooperates with supply chain partners while ensuring the health and safety of employees, and realizes stable operation as a whole. In China's two major international markets, operator networks, government and enterprises The operating revenue of the three major businesses of consumers increased year-on-year.
The first quarterly report is full of highlights, and the operation quality has been systematically improved. Although the company's revenue and profit in the first quarter increased little compared with the same period last year, the gold content was significantly higher. The company's Q1 gross profit margin was 37.78%, with a year-on-year increase of 2.34 percentage points. The sales and management expenses were basically the same. The R & D expenses were close to 4.7 billion, accounting for 16.8% of the accounts receivable. The financial expenses were only 53 million yuan, 379 million yuan in the same period last year, and the monetary capital on the company's account was 59.2 billion yuan, a record high. The company's investment income was 19 million, a decrease of 717 million, mainly due to the income from equity disposal in the same period of last year. The company's inventory is 41.27 billion yuan, and sufficient goods preparation lays a good foundation for the company's operation and delivery. On the whole, the company's various data have improved, and the operation quality has been improved.
Grasp the development trend of digitization and make efforts to "the second curve" layout. At present, new infrastructure construction, computing in the East and computing in the west, carbon peak and carbon neutralization have become the main development trends in the future. The company continues to build the "connection + computing power" capability, develop the "second curve" layout including servers and storage, terminals, digital energy, automotive electronics and other businesses, and strengthen cooperation with leading enterprises in the industry through the extension of its ICT technology capability, so as to actively promote the application and practice of industrial digitization, Empowering thousands of lines and hundreds of industries, intelligent transformation and upgrading. The company's servers and storage have gained a good share in recent important centralized purchase projects, which has formed a strong support for the company's performance growth. Through the engineering service system covering more than 100 countries and regions around the world, we will fully assist the safe and stable operation of communication networks outside China and build a communication network lifeline for enterprises and individuals.
Investment suggestion: we expect that the three business segments of the company will continue to develop steadily, among which the government enterprise business and consumer business are expected to continue to maintain a high growth rate. We predict that the net profit attributable to the parent company from 2022 to 2024 will be RMB 8.79 billion, RMB 9.80 billion and RMB 10.84 billion, corresponding to EPS of RMB 186, RMB 207 and RMB 2.29, and the corresponding PE of the current stock price will be 13.8, 12.4 and 11.2 respectively, maintaining the "buy" rating.
Risk tip: the price of 5g network equipment has decreased; Sino US trade frictions intensified.
