\u3000\u30 Chongqing Baiya Sanitary Products Co.Ltd(003006) 27 Shanghai Huace Navigation Technology Ltd(300627) )
Event: the company announced on April 27 that in 2021, the revenue was 1.903 billion yuan (+ 35.02%), the net profit attributable to the parent company was 294 million yuan (+ 49.45%), the net profit not attributable to the parent company was 230 million yuan (+ 53.17%), the gross profit margin was 54.64% (+ 0.36pcts), and the net profit margin was 15.22% (+ 1.16pcts). In 2022q1, the revenue was 422 million yuan (+ 21.97%), and the net profit attributable to the parent company was 67 million yuan (+ 34.92%). At the same time, the company announced that the overall operating target for 2022 was revenue of 2.55 billion yuan (+ 33.99%), and the net profit attributable to the parent company was 370 million yuan (+ 25.71%).
The company’s revenue and profit increased rapidly, and the net interest rate reached a new high in recent three years
In 2021, the demand of various industries involved by the company was good, and the operating revenue (1.903 billion yuan, + 35.02%) increased rapidly. Against the background of rising prices of raw materials, the company achieved a steady increase in gross profit margin (54.64%, + 0.36pcts) based on the cost advantages of strategic goods preparation, R & D cost reduction and large-scale procurement. At the same time, affected by the addition and deduction of R & D expenses, the company’s income tax (RMB 1949800, – 90.62%) decreased significantly, which promoted the rapid growth of the company’s net profit attributable to the parent company (RMB 294 million, + 49.45%), The company’s net profit margin (15.22%, + 1.16pcts) also hit a new high in recent three years.
In 2022q1, the company’s revenue (422 million yuan, + 21.97%) and net profit attributable to the parent company (67 million yuan, + 34.92%) maintained rapid growth, and the gross profit margin (60.38%, + 1.53pcts) and net profit margin (15.34%, + 1.52pcts) reached a record high in the same period, reflecting the continuous rise of the company’s profitability.
In terms of products, in 2021, the company’s business includes high-precision positioning equipment, system applications and solutions. Among them, the company’s revenue from high-precision positioning equipment (RMB 1.094 billion, + 14.61%) increased steadily, and the revenue from system application and solutions (RMB 809 million, + 77.80%) increased significantly, highlighting that the downstream of Beidou high-precision navigation industry is in a high boom development period.
From the perspective of industry classification, the company’s business involves four fields: Construction and infrastructure, geospatial information, resources and public utilities, Siasun Robot&Automation Co.Ltd(300024) and driverless. The details are as follows:
① the revenue of construction and infrastructure construction (860 million yuan, + 25.80%) is the largest. It will achieve rapid growth in 2021, and the gross profit margin (60.95%, + 3.90 PCTs) will rise steadily;
② the revenue of geospatial information field (345 million yuan, + 35.22%) increased rapidly, and the gross profit margin (54.49%, + 4.75 PCTs) increased steadily;
③ the revenue of resources and public utilities (609 million yuan, + 51.92%) increased the most, but the gross profit margin (46.05%, – 7.26 PCTs) decreased;
④ the revenue of Siasun Robot&Automation Co.Ltd(300024) and driverless field (89 million yuan, + 27.61%) increased rapidly, and the gross profit margin (52.99%, + 3.56 PCTs) increased.
On the whole, we believe that in 2021 and 2022q1, the company’s revenue and net profit showed a rapid growth trend. Although the gross profit margin of the company decreased in individual business areas, the rapid development of Beidou high-precision application market and the rapid expansion of the company’s business had a limited impact on the rapid growth of the company’s overall revenue and profit.
The company continues to increase R & D investment, which is expected to bring new incremental space for the company’s future performance
In terms of expenses, in 2021, the company’s three fee rate (28.72%, -0.52pcts) decreased steadily. Specifically, only the sales expense rate (22.10%, + 0.32pcts) increased slightly, mainly due to the cost increase brought by the growth of the company’s main business and the increased investment in channel development and sales system construction. At the same time, the company continued to increase R & D investment, and the R & D expense rate (17.49%, + 2.65 PCTs) hit a new high since listing. The company is still in a period of rapid development from the perspective of significant growth in R & D personnel (482 people, + 46.50%). From the perspective of the company’s main R & D projects, we believe that the company’s R & D investment is concentrated in the middle and upper reaches of the Beidou high-precision navigation application industrial chain (including upstream basic devices, midstream terminal equipment and service system), which will continue to strengthen the company’s competitiveness in the downstream emerging fields of satellite high-precision navigation, and bring more incremental income space and profit space to the company.
In terms of cash flow, in 2021, the net cash flow generated by the company’s operating activities (RMB 271 million, + 17.43%) hit a new record after listing, and the net cash flow generated by financing activities (RMB 843 million, an increase of RMB 940 million compared with 2020) increased significantly, mainly due to the arrival of funds raised by the company from issuing shares to specific targets.
In terms of other financial data, at the end of 2021, the company’s inventory (377 million yuan, + 62.52%) increased rapidly, of which the delivered goods reached 112 million yuan (+ 173.56%), which is expected to be quickly cashed in to the income statement in 2022. At the same time, the raw materials in inventory (126 million yuan, + 339.32%) also increased significantly. Combined with the doubling of the company’s contract liabilities (149 million yuan, + 113.75%), we judge that, The company has some orders in hand or sufficient demand from intended customers. At present, it is actively preparing goods. At the same time, storing raw materials in advance will continue to help the company maintain its gross profit margin at a certain level under the price rise of upstream raw materials.
The fixed growth of the company was completed, and the capital market was used to realize the extension growth
In June 2021, the company completed the fixed increase and raised a net fund of 785 million yuan, of which 312 million yuan was used for the production capacity construction project of Beidou high-precision basic devices and terminal equipment, 238 million yuan was used for the construction project of intelligent space-time information technology R & D center, and 235 million yuan was used to supplement working capital. It is worth noting that according to the disclosure of the company’s fixed increase manual, the company’s Beidou high-precision basic device and terminal equipment capacity construction project will carry out capacity construction for the company’s high-precision GNSS receiver and commercial navigation application products (including board and combined navigation receiver) on the basis of the company’s existing products and technology. The construction period of the project is planned to be 2 years, The company expects to increase its operating revenue by 709 million yuan (accounting for 17.50% of the company’s revenue in 2021) and its total profit by 140 million yuan (accounting for 21.98% of the company’s total profit in 2021).
According to the 2021 China Spacesat Co.Ltd(600118) navigation and location service industry development white paper, the output value of China’s high-precision market reached 11 billion yuan in 2020, up 47.59% year-on-year compared with 2019, much higher than the overall market growth rate of Beidou application (16.90%). Referring to the change law of output value of upstream, middle and downstream parts of China Spacesat Co.Ltd(600118) navigation and location service industry chain in recent years, we judge that, In the 14th five year plan, the downstream operation service field of China’s high-precision market will show rapid development.
Under the background that the company has developed and mass produced high-precision GNSS baseband chip “Xuanji”, a variety of high-precision GNSS boards, modules, antennas and other basic devices, the promotion of the company’s fixed raising and investment project will lay the foundation for the company’s capacity guarantee in the upstream (equipment and foundation period) of Beidou high-precision application market during the 14th Five Year Plan period, and then constitute the basic guarantee for the company’s rapid performance growth during the 14th Five Year Plan period.
“Internal and external training” helps the company enjoy the high prosperity development dividend of high-precision satellite navigation industry
Since its establishment in 2003, the company has always focused on the core technologies related to high-precision navigation and positioning applications and the development, manufacturing, integration and industrialization of their products. Focusing on the core of high-precision navigation and positioning technology, the company has gradually built two core technology moats: high-precision positioning chip technology platform and global satellite earth integrated enhanced network service platform, and gradually built the competitiveness of various high-precision positioning and navigation intelligent equipment and system applications and solutions in construction and infrastructure, geospatial information, resources and public utilities, Siasun Robot&Automation Co.Ltd(300024) and driverless industries.
① construction and capital construction
Based on a variety of high-precision positioning equipment and system applications and solutions, the company provides high-precision location information for the survey, design, construction, operation and maintenance of customers in construction, engineering, construction and other industries.
In 2021, the company launched the “five-star 16 frequency RTK” high-precision receiver intelligent equipment to break through the signal problems in complex measurement scenes, design exquisite and portable, integrate inertial navigation modules, and greatly improve the operation efficiency. On the basis of the original technology, integrating vision and image recognition technology, the company developed the “visual RTK” high-precision receiver intelligent equipment and introduced it to the market, leading the technical progress of the industry. At the same time, the company promotes “tcf900 pile driver system” and “gradenav earthwork construction solution” to the market to help construction customers better control construction progress and quality, reduce construction cost and improve construction efficiency.
② geospatial information
Through the combination of surveying equipment, the company provides efficient solutions for customers in surveying and mapping. Including based on high-precision GNSS + ins + lidar + unmanned flight control technology, the company has developed equipment mounted on mobile carriers and integrated multi-source sensors to obtain spatial three-dimensional information; Based on high-precision GNSS + ins + unmanned ship control technology, combined with communication, radar obstacle avoidance, visual ranging and other technologies, an underwater and above water surveying and mapping solution with unmanned ship as the carrier and equipped with sonar, multi beam, laser scanner and other sensor equipment is developed.
In 2021, the company will continue to firmly invest in high-precision lidar, integrated navigation, slam, photogrammetry and unmanned flight control related technologies, and master fully autonomous and controllable real scene 3D data acquisition and processing technology; And, for the acquired multi-source data, R & D will realize the multi-level information extraction of massive point cloud, data rendering and packaging, three-dimensional spatial information extraction and standardization, so as to achieve the semi-automatic processing of the whole process of three-dimensional panoramic data and improve the work efficiency of existing manual operations. With the advantages of core technology and product solutions, the company’s multi-source data acquisition and fusion solutions have been applied to more regional real-world 3D projects. By the end of 2021, the company has established in-depth cooperation with survey units in 1 municipality directly under the central government, 8 provincial capitals and 2 prefecture level cities. In the future, the company will continue to explore and output efficient and reproducible solutions in real 3D construction. At the same time, with the leading performance advantages of unmanned ship products, the company has completed rapid promotion in major water conservancy and cultural bureaus, water conservancy and hydropower units, water related surveying and mapping units, etc.
③ resources and public utilities
Based on GNSS Integrated Navigation and positioning technology, the company has designed the application environment for the professional market of high-precision navigation and automatic control of agricultural machinery to meet the universality requirements of agricultural machinery operation, and has developed Beidou agricultural machinery automatic navigation control system, satellite leveling system, agricultural machinery production information management platform, land leveling solution, intelligent spray control solution, etc, Realize the integration of intelligent operation machinery and remote interaction and sharing of multi machine operation, improve agricultural operation efficiency, reduce cost, improve output and provide operation decision support; Based on the core technology of Internet of things + Beidou high-precision positioning, a displacement monitoring system solution for different industry applications is developed, which can obtain the three-dimensional deformation, crack, rainfall and other perceptual data of the monitored object all day and all day, and carry out scientific, information-based, standardized and visual management based on the information platform and monitoring Internet of things platform.
In 2021, the company launched the agricultural machinery automatic driving product “Navigator NX510”, established in-depth cooperation with some host enterprises, and realized the rapid promotion of agricultural machinery automatic driving products. At the same time, the company continued to promote the industry-leading universal geological disaster monitoring scheme, covering the potential disaster points in all provinces of the country. By the end of 2021, More than 20000 universal monitoring and early warning equipment installed by the company have been distributed in nearly 5000 hidden danger points in 14 provinces across the country.
④ Siasun Robot&Automation Co.Ltd(300024) and unmanned driving
Relying on the core technical advantages of integrated navigation algorithm, the company has developed high-precision and high dynamic positioning, direction finding and attitude measuring receiver and other terminals, which can provide high-precision integrated navigation modules, integrated navigation boards, positioning and direction finding receivers, portable integrated navigation terminals, mobile phones, high-speed railway vehicles, unmanned transport vehicles such as ports / mining areas, logistics Siasun Robot&Automation Co.Ltd(300024) and so on Seismic measuring antenna and other products meet the needs of high-precision navigation and positioning for applications such as automatic driving, vehicle intelligent monitoring and management, railway patrol inspection, seamless logistics, driving test and driving training. By the end of 2021, the company has reached cooperation with Alibaba, tage Zhixing, Xijing and other companies in the fields of low-speed Siasun Robot&Automation Co.Ltd(300024) , mine car, port, logistics automatic driving and so on. At the same time, the global satellite earth integrated enhanced network service platform developed by the company will provide differential information and create integrated solutions for autonomous passenger cars and all kinds of Siasun Robot&Automation Co.Ltd(300024) of high-precision mobile intelligent equipment in the future.
In 2021, the company has been designated as the designated supplier of automatic driving position unit business of Nezha automobile, Geely lutes, Byd Company Limited(002594) automobile and Great Wall Motor Company Limited(601633) . The project period is from 2021 to 2026. At present, it is in the development and testing stage before mass production. After the mass production of the above models, the annual revenue is confirmed according to the actual orders of the year, which is expected to have a positive impact on the operating performance of the company. In the future, the company will actively layout vehicle specification level gnsssoc chip, high-precision vehicle specification level IMU chip, global SWAs wide area enhancement system and continue to invest in optimizing core algorithms to provide customers with more competitive products and solutions.
Overall, we believe that the company’s high-precision satellite navigation industry, with the completion of China’s Beidou space infrastructure construction and the promotion of satellite based / ground-based enhancement and other services in recent years, on the demand side, during the 14th Five Year Plan period, the downstream market of the company’s high-precision satellite navigation applications will enjoy the new incremental market brought by the integration development trend of “Beidou +” and “+ Beidou” industries, The equipment and device market in the middle and upper reaches of the company’s high-precision satellite navigation application industry will add the additional growth rate brought by the domestic substitution trend on the basis of the growth rate of the overall high-precision satellite navigation application market.
On the supply side, under the background of the company’s “internal and external training” of increasing R & D investment and leveraging the capital market extension growth, the company is expected to further expand the market space of the company in the middle and upper reaches (terminal equipment and devices) of the corresponding high-precision satellite navigation application field by relying on its own layout foundation in the middle and lower reaches of the high-precision satellite navigation application industry, The above will also form the basis for the sustained and rapid growth of the company’s revenue during the 14th Five Year Plan period.
Equity incentive has been implemented for many times to stimulate the long-term development vitality of the company
After the company implemented equity incentive in 2020, the company implemented equity incentive twice again in October 2021 and February 2022. Including: in October 2021, 8 million shares (accounting for 2.11% of the total share capital) were granted to 719 incentive objects, the grant price was 35 yuan / share, and the performance assessment requirement was 202
