\u3000\u3 Guocheng Mining Co.Ltd(000688) 088 Arcsoft Corporation Limited(688088) )
Performance review
On April 27, the company released its annual report for the 21st year and its quarterly report for the 22nd year. In the 21st year, the company achieved a revenue of 573 million yuan, a year-on-year decrease of 16.12%; The net profit attributable to the parent company was 151 million yuan, a year-on-year decrease of 39.8%; The net profit deducted from non parent company was 104 million yuan, with a year-on-year decrease of 46.89%, and the performance was slightly lower than expected. 22q1 achieved a revenue of 136 million yuan, a year-on-year decrease of 9.39%, and the net profit attributable to the parent company was 25 million yuan, a year-on-year decrease of 55.86%.
Business analysis
The new and old businesses alternate, and the mobile phone business is in a low tide, and the performance is lower than expected. During the reporting period, the company’s mobile intelligent terminal vision solution achieved a revenue of 535 million yuan, a decrease of 10.73% at the same time, mainly due to the slowdown in the growth of smartphone shipments and the improvement of industry concentration, which affected some customers of the company; The intelligent driving business achieved an operating revenue of RMB 20 million, down 69.55% at the same time, mainly due to the fluctuation of rear mounted customers and the lack of “core” in the upstream. During the reporting period, some models of the front fixed-point business lantu and great wall project have achieved mass production and shipment. Due to the impact of the settlement cycle, it is expected to gradually contribute piece work revenue in the first half of 2022, and the rate of superimposed sales / management / R & D expenses increased by 2.28pp/1.11pp/9.19pp compared with last year, During the reporting period, the net interest rate decreased by 12.7pp.
Firmly increase R & D investment, continue to innovate and output differentiated products. Although the overall revenue declined, the company still firmly increased R & D investment during the reporting period. The R & D cost was 271 million yuan, a year-on-year increase of 4.39%, and the R & D cost rate was 47.17%, an increase of 9.19pp compared with last year. During the reporting period, the company innovated new products such as off screen TOF camera, intelligent video recording and AR “black technology”. The optical off screen fingerprint scheme has been mass produced in small quantities. The second generation of ALS adopted off screen light sensing + color temperature + close to light three in one chip. Samples were produced in the second half of 22 years. AR / VR innovative products were favored by OEM customers in many fields.
Focus on three directions and embrace new opportunities for mobile intelligent terminal vision. The company’s key layout 1) computer vision differentiated products applied to mobile intelligent terminals; 2) In cooperation with mainstream chip manufacturers such as Qualcomm and Huawei, smart car has obtained a number of pre installation projects for mass-produced models from 50 + car factories such as great wall, Chang’an new energy, Chang’an, SAIC, ideal, FAW, Dongfeng Nissan, lantu and Hezhong new energy; 3) AR / VR reserves core technology, which is applied to AI, interaction, video games and other fields. We are optimistic about the large volume of the company’s intelligent driving front loading business, and we are optimistic about the multi scene breakthrough of the company’s computer vision application for a long time.
Profit adjustment and investment suggestions
Combined with the latest performance of the company, we expect the net profit attributable to the parent company in 22-24 years to be 1.92 (- 26%) / 2.38 (- 30%) / 303 million yuan, maintaining the overweight rating.
Risk tips
Risk of shortage of upstream chips; Vehicle business expansion is less than expected; Shipments of high-end mobile phones were lower than expected.
