\u3000\u3000 Urovo Technology Co.Ltd(300531) (300531)
Event: on January 12, 2022, Urovo Technology Co.Ltd(300531) released the performance forecast for 2021. It is estimated that the net profit attributable to the parent company in 2021 will be 160-200 million yuan, an increase of 34.25% – 67.81% compared with 120 million yuan in 2020, and the non net profit deducted is expected to be 160-200 million yuan, an increase of 46.58% – 83.26% compared with 110 million yuan in 2020.
The leading enterprise of Internet of things intelligent terminal has a complete layout of “data acquisition equipment + data generation equipment”, benefiting from the accelerated penetration of social digitization, and the domestic and foreign markets have entered a period of accelerated growth. During the reporting period, adhering to the technology leading strategy, the company continued to increase investment in 5g, bar code reading engine, machine vision algorithm, RFID chip, digital RMB, domestic security and controllability, open source Hongmeng, DPM code recognition technology for intelligent manufacturing, continuously strengthened its core competitiveness and helped the enterprise realize digital transformation. At the same time, the company continued to promote the internal digital transformation of the enterprise and launched the equity incentive plan for the first time, further improving the operation efficiency and cohesion. From 2016 to 2020, the compound growth rate of the company’s overseas revenue was as high as 80%. Although the overseas business revenue decreased in 2020 due to the epidemic, with the overseas epidemic slowing down, the company’s overseas market business gradually recovered in 2021. Combined with the company’s advantageous layout in supply chain management, with the advantages of good product performance, sufficient and stable supply and delivery capacity, etc, Domestic and foreign sales revenue increased rapidly compared with the same period of last year. In the first three quarters of 2021, the company realized an operating revenue of 1.039 billion yuan, a year-on-year increase of 29.21%; The net profit attributable to the parent company was 137 million yuan, a year-on-year increase of 10.90%.
Affected by the equity incentive plan, non recurring profit and loss and exchange loss, the actual operating profit of the company will be about RMB 1.76 million higher than the number of statements, with solid performance and great valuation flexibility. Among them, the impact of share based payment amortization expense caused by equity incentive plan on the company’s net profit is about 6.59 million yuan, the impact of non recurring profit and loss on the company’s net profit is expected to be about 170000 yuan, and the impact of exchange loss caused by the fluctuation of RMB against us dollar exchange rate in the foreign exchange market on the company’s net profit is about 13 million yuan, The total amount is about 20 million yuan (subject to the audit of the company’s audit institution).
One of the most core targets of Hongmeng, the demand for tens of millions of Hongmeng terminals is waiting to be released. Mobile terminal Xinchuang started with Hongmeng. We believe that the landing speed and scale of Hongmeng industry will exceed market expectations. Police individual law enforcement, electric power / health / environmental protection / forestry / safety supervision / fishery administration, party, government and army warehousing and logistics, hospital patrol management terminals, etc. the demand for tens of millions of Hongmeng terminals is waiting to be released. Urovo Technology Co.Ltd(300531) joined the “open atom open source foundation” as a gold donor, participated in the open source Hongmeng project, became a class B donor of the project group, and participated in the construction of Hongmeng project in the fields of industry application AIDC (automatic identification and data acquisition), IOT, payment and so on. At present, some intelligent terminal products of Urovo Technology Co.Ltd(300531) have been adapted to Hongmeng system, and more upgrading and adaptation are being promoted in an all-round way.
Investment suggestion: maintain the company’s net profit forecast of 184, 261 and 354 million yuan in 21-23 years, and maintain the “buy” rating.
Risk analysis: market competition intensifies; Overseas market expansion is less than expected
