\u3000\u30 Beijing Jingyeda Technology Co.Ltd(003005) 71 Hangzhou Anysoft Information Technology Co.Ltd(300571) )
1. Event overview
In 2021, the company achieved a revenue of 3.601 billion yuan, a year-on-year increase of 49.57%, and a net profit attributable to the parent company of 244 million yuan, a year-on-year increase of 15.74%. In 2022, the company’s revenue was 1.287 billion yuan, a year-on-year increase of 103.6%; The net profit attributable to the parent company was 113 million yuan, a year-on-year increase of 40.1%
2. Comments:
1) revenue level: the company’s operators won the bid continuously, with abundant orders on hand and high probability of continuous growth in the future. The revenue of the company’s smart home business and 5g communication business increased rapidly in 2021, realizing an operating revenue of 2.66 billion yuan, an increase of 69.03% over the same period last year, becoming the main revenue and profit growth point of the company.
Against the background of the wave of “double Gigabit” network development, the company’s smart home business and 5g communication equipment business are expected to continue to achieve rapid development. During the reporting period, Ping company continued to win the bid for many large-scale centralized procurement projects of smart home products from operators. By the end of 2021, the cumulative bid winning amount of Shenzhen Zhaoneng was about 9.722 billion yuan, and the outstanding orders were about 5.233 billion yuan. The share of the company’s products in operators was further expanded. Under the background of 5g new infrastructure, in July 2021, the company won the first large-scale commercial bid for 5g communication equipment (China Radio and television and China Mobile 700m5g network bid section), and the company officially opened 5g communication business. As of the disclosure date of the annual report, the bid winning amount of 5g communication business of the company was about 904 million yuan (including tax).
2) gross profit margin: the company’s Q1 comprehensive gross profit margin was 14.55%, with a year-on-year decrease of 5.8pct and a month on month decrease of 0.4 PCT. The main reason for the decline of the company’s gross profit margin was the sharp decline in the gross profit of the company’s Internet and related services, such as mobile reading. We judge that with the continuous decline in the proportion of the company’s Internet business revenue, the company’s comprehensive gross profit margin is expected to stabilize.
3) at the level of three fees, the proportion of three fees in Q1 company continued to decrease in 2022, with the company’s management fee rate of 1.3%, a year-on-year decrease of 1.18pct, the sales expense rate of 0.23%, a year-on-year decrease of 0.52pct, the R & D expense rate of 1.3%, and a year-on-year decrease of 1.1pct. The absolute value of the company’s overall expenses did not change significantly, and the revenue pull was the main reason for the reduction of the company’s three fee rate.
3. Benefiting from the rapid growth of fixed communication business of China Telecom Corporation Limited(601728) operators, Shenzhen Zhaoneng has taken the lead in card layout and obvious market competitiveness
Shenzhen Zhaoneng products and services have widely entered the five product lines of access and home networking system, digital video, smart home, government enterprise application and Internet of things in communication network;
Over the past few years, China Telecom Corporation Limited(601728) fixed communication business has grown rapidly, and emerging businesses such as smart home have become the first growth engine of income: from the perspective of the industry as a whole, fixed network business has always been an important source of income for operators, accounting for an increasing proportion in the past few years.
We judge that as the income of fixed network business such as smart home of telecom operators becomes more and more important, its related equipment and procurement will continue to develop in the next few years. From the share of previous procurement bidding, Shenzhen Zhaoneng’s share ranks among the top three, which proves that its technical strength and market competitiveness are obvious.
4. Cut into the 5g network market of operators and create the second growth point: in addition, the company is expected to become the second growth engine of the company in the future by arranging 5g access, bearing and other markets through private placement. Recently, the company has verified the second growth logic of the company in the wireless access market of operators.
5. Performance forecast and investment suggestions
Considering the execution of subsequent orders and new orders of the company, as well as the performance carry forward of 2022q1, the gross profit margin forecast is adjusted and the profit forecast is lowered out of the principle of prudence. It is estimated that the revenue in 20222024 will be adjusted from RMB 4.37/5.35/n/a to RMB 4.55/55.8/6.62 billion respectively, and the earnings per share will be adjusted from 2.8/3.2/n/a to RMB 2.1/2.6/3.0 respectively, corresponding to the closing price of RMB 37.23/share on April 27, 2022, and the PE will be 17.4/14.2/12.5 times respectively, Maintain the company’s “overweight” rating.
6. Risk warning
The competition threshold of Shenzhen Zhaoneng products and services is low, customers rely on operators, and the gross profit is at risk of decline; The media IP field is head-on, and the company’s long-term content investment is high, which hinders the overall performance; Uncertainty of framework agreement.
