\u3000\u3 China Vanke Co.Ltd(000002) 881 Meig Smart Technology Co.Ltd(002881) )
Event:
The company released the annual report of 2021 and the first quarter report of 2022. In 2021, the company achieved a revenue of 1.969 billion yuan, a year-on-year increase of 75.68%; The net profit attributable to the parent company was 33.3 billion yuan, a year-on-year increase of 1.854 billion yuan. In the first quarter of 2022, the company achieved a revenue of 401 million yuan, a year-on-year increase of 54.26%; The net profit attributable to the parent company was 246068 million yuan, a year-on-year increase of 59.66%.
1. In the past 21 years, the income has increased rapidly, and the characteristics of product customization have created differentiated competitiveness
The company’s revenue continued to maintain a high growth rate, and its revenue growth significantly accelerated in 2021. Under the influence of the lack of core in the industry, it built its core competitiveness with intelligent and customized products, and deeply cultivated the 4G / 5G product series. In 2021, it was the first in the industry to launch 5g intelligent modules and form a complete intelligent module product series. The shipments of 4gcat1, Cat4 modules, 5g modules and FWA products maintained a high growth. In addition, the company deepened its layout in areas such as intelligent cockpit and FWA, expanded its product influence and improved its customer service ability. We believe that the company takes the intelligent module as the cornerstone product, fully meets the needs of different industries and customers, continues to expand customers through leading technology R & D strength and market service ability, and the revenue and profit are expected to maintain a sustained high growth.
2. Overcome the impact of the epidemic and achieve rapid growth in product delivery in key areas
In 2022q1, under the repeated epidemic situation in China, the company overcame the adverse impact of the epidemic on R & D and supply chain, actively ensured R & D progress and product delivery, and maintained high growth of operating revenue. The company continued to develop 5g modules and actively promoted the expansion of new fields. 2022q1 achieved results, and the delivery of 5g products in the fields of intelligent cockpit and FWA increased significantly. We believe that the company’s continuous development of market and customers will provide sufficient impetus for the company’s growth, the continuous volume of vehicle and FWA will significantly increase the scale of revenue, and the company’s revenue will continue to increase in the future.
3. Effective supply chain management and control, continuously improving profitability, and looking forward to the decline of raw material prices
In 2021, the company’s net interest rate was 5.98%, an increase of 3.53pp compared with 2020. Among them, the company’s net interest rate in Q4 in 21 years was about 5.90%, significantly higher than Q3 (5.15%), while in Q1 in 2022, the company’s net interest rate continued to rise to 6.09%. The continuous improvement of the company’s net profit rate stems from the strong premium ability of the company’s intelligent module products due to their intelligent and customized attributes. At the same time, the company responds to the impact of shortage and price rise of raw materials by strengthening strategic goods preparation, price transmission, cost reduction and efficiency increase of the supply chain, increasing the shipment demand of high gross profit products and other comprehensive measures. We believe that the effectiveness of the company’s supply chain management and control has been shown. After the price of raw materials stabilizes and falls in the future, the company’s profitability is expected to continue to maintain the growth trend.
4. Technological advantages enable development, customer resources provide growth momentum, and continue to expand the market with high growth prospects
Overall: 1) at present, the company has become one of the leading manufacturers in the industry, and the 4G / 5G product sequence layout has been gradually improved. At the same time, 2021q4 has ranked third in the world in terms of revenue share of global IOT module suppliers, ranking among the forefront of the industry, with scale effect; 2) The company’s leading customized development technology has formed large-scale applications in the core areas of the Internet of things such as new retail, intelligent Internet connected vehicles and 5gfwa, and has established a relatively deep industry accumulation; 3) After years of business development, the company has accumulated a number of high-quality customer resources represented by overseas leading brands, operators and listed companies. On this basis, the company continues to expand the scope of customer groups, and the market recognition and customer volume continue to improve. With its own technological leadership and continuous expansion of the market and customers, the company is expected to make continuous breakthroughs in its future development.
Profit forecast and investment suggestions: the company is one of the first tier manufacturers of Internet of things modules. With the high prosperity of the Internet of things industry, the company continues to expand its layout in many fields. It is expected to expand rapidly in new technology fields such as operator FWA terminals and vehicle products. The rapid growth of products in various fields is expected, which will fully benefit from the vigorous development of the Internet of things. It is estimated that the net profit attributable to the parent company in 22-24 years will be 205 million yuan, 312 million yuan and 440 million yuan respectively, corresponding to 25 times the P / E ratio in 22 years and 16 times the P / E ratio in 23 years, maintaining the “overweight” rating.
Risk tip: the upstream raw materials continue to maintain high prices, the development of new customers is less than expected, the technology update iteration and the progress of automobile networking are less than expected
