\u3000\u30003 Midea Group Co.Ltd(000333) 00033)
Event: the company released the report for the first quarter of 2022, achieving an operating revenue of 515 million yuan, a year-on-year decrease of 2.90%, a net profit attributable to the parent of 112 million yuan, a year-on-year decrease of 34.01%, and deducting a net profit not attributable to the parent of 108 million yuan, a year-on-year decrease of 35.99%. In line with market expectations.
The performance of 21q1 is mainly affected by market transactions, and the beta attribute is expected to continue to be reflected under the general development trend of the capital market. 1) In 2022q1, China’s capital market still maintained stable development. According to wind data, from January to March 2022, the stock turnover of Shanghai Stock Exchange, Shenzhen Stock Exchange and Beijing stock exchange totaled 58.58 trillion yuan, a year-on-year increase of 6.63%, and the growth rate slowed significantly. Over the same period, the company achieved an operating revenue of 515 million yuan, a slight decrease of 2.90% year-on-year, the overall gross profit margin was 83.98%, a year-on-year increase of 0.24pct, and the net profit attributable to the parent company was 112 million yuan, a year-on-year decrease of 34.01%, mainly due to the poor overall market environment and the reduced demand of C-end investors for stock speculation software. The net operating cash flow was 89 million yuan, a year-on-year decrease of 52.79%, mainly due to the expansion of the company’s scale and the increase in remuneration paid to employees. 2) From the 2021 annual report, the company’s businesses benefited from the steady development of the general trend of the capital market, in which the fund consignment business achieved high growth. In terms of business, the revenue of value-added telecom services was 1.618 billion yuan, with a year-on-year increase of 25.95%. It is expected that the securities market is active and investors’ demand for financial information has increased. Advertising and internet promotion services achieved a revenue of 1.284 billion yuan, a year-on-year increase of 53.64%, mainly due to the increase in user activity and the corresponding increase in advertising and promotion business. The revenue from software sales and maintenance was 296 million yuan, a year-on-year increase of 22.58%. The income from fund sales and other transaction fees was 312 million yuan, a year-on-year decrease of 35.30%, of which the income from fund consignment business increased by 72.94% year-on-year. By the end of 2021, the “love fund” platform had access to 171 fund companies and securities companies and sold 14322 fund products and asset management products on a commission basis. The company’s investment performance is expected to be supported by the continuous development of beta trading sentiment in the future.
R & D continued to invest heavily to build technical barriers, and other expenses were well controlled. 1) The company’s R & D expenses increased by 2027.2% year on year, mainly due to the increase of R & D personnel’s salary rate of 2026.1 2pc billion yuan. According to the 2021 annual report, the company’s R & D investment is mainly invested in the application of key technologies such as machine learning, natural language understanding, speech recognition and human-computer interaction. At the same time, by the end of 2021, the company has obtained 365 software copyrights and 137 non patented technologies independently developed, forming an obvious technological leading edge Hithink Royalflush Information Network Co.Ltd(300033) ai open platform can currently provide more than 40 AI products and services, which are applied to securities, funds, banking, insurance, operators, universities, enterprises, scientific research institutes, government departments and other industries. The company’s self-developed intelligent customer service Siasun Robot&Automation Co.Ltd(300024) has been applied to many large and medium-sized securities and fund companies. The company will continue to maintain the investment in AI technology and explore new profit growth points in many fields. 2) In addition to R & D expenses, the sales expense rate of 2022q1 company was 13.91%, a year-on-year decrease of 1.38pct, the management expense rate was 8.16%, a year-on-year increase of 1.71pct, and the financial expense rate was – 13.14%, a year-on-year decrease of 4.86pct, mainly due to the increase of bank deposit interest.
Internet traffic with multiple beta attributes is the leader, benefiting from the general trend of capital market development. Beta1: during the peak period of capital market, the growth rate of revenue is twice that of trading volume. Beta2: the top financial attribute is flow, and AI can enhance the liquidity of flow. In recent years, the Mau of Hithink Royalflush Information Network Co.Ltd(300033) app is between 50 million and 70 million (iResearch data), which has always been the traffic champion on the mobile terminal line. The company’s AI customer service system is gradually mature and is expected to significantly improve the efficiency of traffic conversion. Beta3: Based on AI and big data technology, invest in Siasun Robot&Automation Co.Ltd(300024) software products to strengthen the profit-making effect. The great development trend of the capital market has emerged. Software such as “financial master” and “wealth pioneer” enable customers to enjoy the profit-making effect in stock selection and timing, which is expected to benefit in the long term.
Maintain the “buy” rating. According to key assumptions and recent financial reports, it is estimated that the operating revenue from 2022 to 2024 will be 4.5 billion yuan, 5.648 billion yuan and 6.971 billion yuan respectively, and the net profit attributable to the parent company from 2022 to 2024 will be 2.445 billion yuan, 3.135 billion yuan and 3.923 billion yuan respectively. Maintain the “buy” rating.
Risk warning: the income of core products does not meet expectations; Strengthening financial supervision; The capital market is depressed
