\u3000\u30 Beijing Jingyeda Technology Co.Ltd(003005) 71 Hangzhou Anysoft Information Technology Co.Ltd(300571) )
Event:
The company issued the annual report of 2021 and the first quarterly report of 2022. In 2021, the company achieved a revenue of 3.601 billion yuan, a year-on-year increase of 49.57%; The net profit attributable to the parent company was 244 million yuan, a year-on-year increase of 15.74%. In the first quarter of 2022, the company achieved a revenue of 1.287 billion yuan, a year-on-year increase of 103.60%; The net profit attributable to the parent company was 113 million yuan, a year-on-year increase of 40.10%.
Meanwhile, the company recently announced several important orders:
1) on April 19, the procurement framework contract of China Mobile Hubei company for WiFi free intelligent gateway in 2022 was signed, with the contract amount of 624031 million yuan;
2) on April 18, China Mobile signed the framework agreement on emergency centralized purchase of smart home gateway from 2022 to 2023, and the tax included in the contract is about 653 million yuan;
3) on April 14, China Mobile won the bid for the centralized procurement of 444 antennas and single 4 antennas (including 700m) from 22 to 23, with a winning share of 7.25% and a winning amount including tax of about 104116 million yuan;
4) on April 13, China Mobile won the bid for the 2022 base station antenna project, and the total amount including tax in the two bid packages was about 461075 million yuan;
The maximum amount of the contract signed with the smart box is RMB 3.5 billion on December 2024, including the purchase tax of the smart box;
6) on April 11, the company signed a contract with China mobile terminal Corporation for specific models such as WiFi 6 Gigabit dual band router, with a total tax inclusive upper limit of 273 million yuan.
Our comments are as follows:
Driven by the digital economy and Gigabit broadband policy, Shenzhen trillion energy orders continue to land, with strong growth momentum. Reading business grows steadily, layout the meta universe and open up greater growth space.
The continuous and rapid growth of the company's revenue comes from: 1) the revenue of smart home business and 5g communication business in 21 years was 2.661 billion yuan, with a year-on-year increase of nearly 70%. The market share of smart home base stations has been continuously increased, and the market share of smart home base stations has been continuously increased; 2) The revenue of mobile reading in the 21st year was 938 million yuan, a year-on-year increase of 12.82%. The company continues to improve the quality and quantity of copyright content, has its own original reading platform + CPS mode, and expands both content and channels to promote the steady growth of reading business; 3) The company's massive digital copyright resources, combined with channel advantages, cut into the meta universe from the field of operators, reached strategic cooperation with China Mobile and China United Network Communications Limited(600050) to focus on the layout in the field of virtual digital people and open up more room for long-term growth.
The gross profit rate fluctuates slightly, and the overall profitability is expected to be further optimized in the future.
In 21 years, the company's overall gross profit margin was 14.96%, with a year-on-year decrease of 5.54 percentage points, of which the gross profit margin of reading business was 27.46%, with a year-on-year decrease of 10.30 percentage points, and the gross profit margin of smart home business and 5g communication business was 10.56%, with a year-on-year decrease of 0.83 percentage points. The overall raw material cost fluctuation in 2021 has a certain impact on the short-term gross profit margin of smart home and 5g communication business. The cost investment of reading business and Internet channel promotion has increased rapidly, which has a certain impact on the gross profit margin. In the first quarter of 2022, the company's overall gross profit margin was 14.55%, a significant increase of 5.38 percentage points month on month. With the continuous promotion of cost reduction and efficiency increase of the company and the continuous growth of reading business revenue, the overall gross profit margin is expected to continue to improve. In terms of expense rate, the overall expense rate of the company in 21 years was 5.77%, a year-on-year decrease of 1.48 percentage points, and the expense rate of 22q1 was 3.52%, a year-on-year decrease of 3.06 percentage points. With the rapid growth of the company's revenue volume, the scale effect is expected to continue to appear, and the overall profitability of the company is expected to continue to strengthen.
Investment advice and profit forecast
The company has a deep accumulation of mobile reading, further develops to the meta universe, and is expected to grow steadily in the future. The layout of the communication field has been continuously improved. The subsidiary Shenzhen Zhaoneng has actively arranged the smart home and 5g communication market. Driven by the policies of digital economy and Gigabit broadband, the company has intensively implemented orders, signed a multi band (including 700m) antenna framework contract with China Mobile, which has substantially cut into the 5g equipment market and opened up future growth space. It is estimated that the net profit attributable to the parent company from 2022 to 2024 will be 430 million yuan, 530 million yuan and 650 million yuan respectively, corresponding to 12 times and 10 times P / E ratio from 22 to 23 years. The "buy" rating is reiterated.
Risk warning: industry development is lower than expected, market competition risk, framework and pre winning contract, and the actual winning situation and amount shall be subject to the final contract
