\u3000\u3 Guocheng Mining Co.Ltd(000688) 256 Cambricon Technologies Corporation Limited(688256) )
Performance review
Revenue and loss expansion: on April 27, Cambricon Technologies Corporation Limited(688256) announced the expected revenue and profit figures for the first quarter of 2022. The revenue was 62.99 million yuan, with a year-on-year increase of 74% (the year-on-year increase was mainly due to the increase of cloud products), with a month on month decline of 87%. The revenue accounted for 6% of wind analysts’ expectation and 7% of our expectation; Net loss attributable to the parent company / net loss deducted from non attributable to the parent company was 287 million / 359 million, an increase over the loss of 206 million / 22.3 million in the same period last year.
The gross profit margin improved in the same period, but the proportion of R & D increased: the gross profit margin of the company in the first quarter was 56.6%, higher than 44.1% in the same period last year, but fell by nearly 11 points month on month. The significant year-on-year increase in operating expenses was mainly due to the increase in administrative expenses (93.55 million, increased due to the regular allocation of restricted stocks) and R & D expenses (279 million), but the operating expense rate decreased from 771% in the same period last year to 643% in the first quarter of this year.
Investment advice
We maintained the forecast of 880 million revenue and 905 million net loss attributable to parent company and the rating of “overweight” in 2022, but assessed that the closure in the second quarter would have some impact on the forecast of the whole year. We lowered the target price from 88 yuan to 57 yuan.
Risk tips
High valuation risk, terminal AI processor IP service reduction risk, intelligent computing cluster system business risk, horizontal competition risk, negative cash flow risk.
