\u3000\u30 Beijing Telesound Electronics Co.Ltd(003004) 96 Thunder Software Technology Co.Ltd(300496) )
Event overview: the company released the 2022q1 quarterly report: during the period, the operating revenue was 1.153 billion yuan, with a year-on-year increase of 45.81%; The net profit attributable to the parent company was 156 million yuan, a year-on-year increase of 41.36%; The net profit after non deduction was 147 million yuan, a year-on-year increase of 53.12%; Net operating cash flow was 0.72 yuan, with a year-on-year increase of 26.85%.
Income showed high growth, and the impact of the epidemic was relatively limited. Relying on global R & D collaboration, customer stickiness and long-term accumulated organizational effectiveness, the company has minimized the impact of the epidemic on the company’s operation. During the reporting period, the company achieved a revenue of 1.153 billion yuan, a year-on-year increase of 45.8%. Among them, the revenue of intelligent software business was 380 million yuan, a year-on-year increase of 24.6%. In the context of the decline in mobile phone sales, we judge that the company may rely on its leading technical advantages to achieve two-way improvement in business volume and market rate, so as to make the business grow against the trend; The revenue of intelligent vehicle business was 355 million yuan, a year-on-year increase of 50.4%. We judge that the company has also actively expanded more underlying platforms and auto customers under the continuous synergy of Qualcomm’s advantages, resulting in the continuous high growth of the business; The revenue of intelligent Internet of things business was 418 million yuan, a year-on-year increase of 67.2%. We judge that under the background of category expansion, the company has also actively expanded customers in Siasun Robot&Automation Co.Ltd(300024) , intelligent vision, XR, handheld terminals and other fields. From the perspective of gross profit margin, the gross profit margin of 2022q1 company is 41.40%, and that of 20 / 21q1 company is 48.14% and 45.73% respectively, showing a slight downward trend. We judge that with the increase of the proportion of intelligent Internet of things business, it is greatly affected by the cost side caused by the rise of hardware costs and raw materials, resulting in a slight decline in the overall sales gross profit margin.
The outlook for the follow-up remains optimistic. 1) Smart cockpit: smart cockpit is the key to giving traditional cars “intelligence” and “Networking”, and the selection of its underlying chip will be based on three factors, including chip price, computing power and 5gmode technology. Judging from this indicator, Qualcomm’s advantages will become more prominent. With the maturity of the company’s solution based on “Qualcomm + QNX” dual IP, on the one hand, it has achieved a leap from an outsourcer to a solution provider, on the other hand, it can take advantage of the advantages of the solution to enjoy the growth dividend of the industry; 2) Intelligent driving: from acquiring 51.48% equity of Fuyi airlines, a star enterprise in the field of independent parking, to establishing a joint venture with Chinese express to jointly build a next-generation automotive computing platform and tool chain, the company has made a first-hand layout. In the field of automatic driving, one of NVIDIA’s advantages over Qualcomm lies in the maturity of software ecology and tool chain. We believe that with the maturity of the company in the automotive computing platform and software development tool chain, with many years of in-depth cooperation with Qualcomm, the company can not only effectively make up for the lack of Qualcomm’s ability in the automotive software and tool chain, but also take this opportunity to smoothly enter the field of automatic driving, and is expected to realize the full output of the existing automatic driving IP; 3) Intelligent Internet of things: with the opening of 5g commercial prelude, downstream Internet of things application products will obtain great growth opportunities. Based on the advantages of Qualcomm chip, the company will continue to expand new categories by virtue of its own OS, visual algorithm, 5g protocol stack and other capabilities, or become the most core increment point in the future.
Investment suggestion: we expect the company to realize a net profit attributable to the parent company of RMB 933 / 1298 / 1749 million in 22-24 years, and the current market value corresponds to 38 / 27 times of PE in 22 / 23 years. We are optimistic about the layout and competitiveness of the company in smart cars and iots, and are expected to benefit from 5g + AI to set off a new round of technology wave and maintain the “recommended” rating.
Risk tip: competition leads to lower gross profit margin, less than expected IOT and automobile business, and increased impact of core shortage.
