\u3000\u3 China Vanke Co.Ltd(000002) 881 Meig Smart Technology Co.Ltd(002881) )
The performance continues to increase, and the leader of intelligent module continues to benefit from the development of the industry
The company released the annual report of 2021 and the first quarterly report of 2022. In 2021, the revenue was 1.969 billion yuan, a year-on-year increase of 75.68%; The net profit attributable to the parent company was 118 million yuan, a year-on-year increase of 330.54%; Deduction of non net profit was 67 million yuan, with a year-on-year increase of 312.31%. In 2022q1, the revenue was 401 million yuan, a year-on-year increase of 54.26%; The net profit attributable to the parent company was 25 million yuan, a year-on-year increase of 59.66%; Deduct non net profit of 20 million yuan, with a year-on-year increase of 36.48%. In 2021 and 2022q1, the company achieved rapid growth under the background of repeated outbreaks and rising prices of raw materials outside China, mainly due to the significant increase in the shipment of intelligent modules and data transmission modules, as well as the smooth market promotion of FWA, Internet of things and intelligent vehicle solutions based on modules. Based on the continuous strong market demand and the company’s high-quality competitiveness, we maintain the company’s performance expectations. It is estimated that the net profit attributable to the parent company from 2022 to 2024 will be 182 / 298 / 449 million yuan respectively, the corresponding EPS will be 0.98/1.61/2.43 yuan / share respectively, and the PE corresponding to the current stock price will be 28.2/17.2/11.4 times respectively, maintaining the “buy” rating.
The volume and price of products have risen simultaneously, and the profitability has been continuously enhanced
The company’s intelligent modules / data transmission modules have achieved rapid volume, the product power has been continuously enhanced, and the volume and price have increased at the same time. In 2021, the shipment of wireless communication modules and solutions was 12.77 million units, with a year-on-year increase of 70.49%, and the average price of products increased by 2.07 yuan to 142.46 yuan. In terms of profitability, due to the rise of upstream chips, raw materials and the increase in the proportion of data transmission modules with low and medium gross profit margin, the company’s gross profit margin decreased by 2.44pct to 18.87% in 2021, and the gross profit margin stabilized at 19.13% in 2022q1. The expansion of performance brought about the appearance of scale effect. During 2021, the expense rate of the company decreased by 4.43pct to 13.10%, and the net interest rate in 2021 and 2022q2 increased by 3.55 and 0.21pct respectively year-on-year.
The Internet of things and FWA products are produced in large quantities rapidly, and the cockpit domain controller is produced in large scale and continuously upgraded iteratively
The vigorous development of the global Internet of things has driven the rapid increase of module market demand. The rich scenes have made the development of intelligent and customized modules a trend. The company has deeply cultivated intelligent modules, accumulated the development ability of communication, operating system, AI algorithm and other technologies, and widely distributed new retail, intelligent logistics and other fields, which is expected to fully grasp the industry opportunities. In the field of FWA terminal, the company benefits from the development of 5g and continues to expand its territory. In the field of intelligent vehicles, the company’s 5g intelligent cockpit domain controller has been mass produced with a variety of models of core customers, and the second-generation upgrade project is also under continuous research and development. Facing the broad intelligent vehicle market, the company has started a new journey.
Risk warning: fierce market competition, sharp fluctuation of exchange rate and disturbance of supply chain by epidemic situation.
