\u3000\u3 China Vanke Co.Ltd(000002) 881 Meig Smart Technology Co.Ltd(002881) )
Event: on April 28, the company released the annual report and the first quarterly report of 2021. In 2021, the company achieved a revenue of 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%; The net profit attributable to the parent company after deduction was 669483 million yuan, a year-on-year increase of 312.31%. In the first quarter of 2022, the company achieved a revenue of 401 million yuan, a year-on-year increase of 54.26%, a net profit of 24.61 million yuan, a year-on-year increase of 59.66%, and a net profit of 204932 million yuan after deduction, a year-on-year increase of 36.48%.
Revenue grew rapidly and profitability improved steadily. According to the company's announcement, the company's 2021q4 operating revenue increased by 50.14% year-on-year, and 2022q1 operating revenue increased by 54.26% year-on-year. The revenue maintained a rapid growth. According to the counter point data, Q4 ranked third in the global module supplier revenue in 2021, and the market share increased to 6.6%. The gross profit margin of 2022q1 was 19.13%, increased by 1.3pct month on month, decreased by 0.15pct year on year, and was basically flat. The sales expense rate was 2.43%, a year-on-year decrease of 0.5pct, the management expense rate was 2.87%, a year-on-year decrease of 0.42pct, and the R & D expense rate was 6.18%, a year-on-year increase of 0.17pct. The company's net profit margin was 6.14%, up 0.2pct year-on-year, and its profitability improved steadily.
The application of intelligent module is accelerated, and the car and FWA subdivision circuits and other subdivision circuits continue to have a high boom. 5gfwa is developing rapidly. According to abiresearch data, with the continuous improvement of 5g availability and the increase of connectivity demand, the market is expected to grow at a compound annual growth rate of 71% in the next five years, and there will be more than 58 million global 5gfwa users in 2026. The company has formed a series of terminal products such as Cat4, CAT6, Cat12 and 5g millimeter wave in the field of FWA, and supplied them to many foreign enterprises at the same time. It is expected to take advantage of the opportunity of switching from foreign FWA market to 5g to increase its market share. With the company's active layout in the field of intelligent network connected vehicles and FQA, it now has a complete vehicle module product line covering 5g, c-v2x, WiFi 6, high-precision GNSS positioning and other technologies. According to the company's announcement, the company's on-board intelligent module products have been mass produced and shipped to China's leading new energy vehicle enterprises and applied to the intelligent cockpit system, which is expected to benefit from the continuous and rapid growth of Shanxi Guoxin Energy Corporation Limited(600617) passenger vehicle sales.
Investment suggestion: Based on its own R & D advantages, the company is committed to the customized R & D of intelligent modules, which is expected to fully grasp the valuable window period of vehicle modules and continuously explore new downstream customers. At the same time, the company benefits from the high prosperity of 5g, alot and FWA markets, and its operating revenue is expected to continue to grow at a high rate. We maintain the profit forecast. It is estimated that the operating revenue of the company from 2022 to 2024 will be RMB 2.714 billion, RMB 3.689 billion and RMB 4.751 billion, and the net profit will be RMB 211 million, RMB 309 million and RMB 462 million. Considering the decline in the valuation of the Internet of things sector caused by the reduction of market risk appetite, we gave the company 35 times PE (45 times the original) in 2022, corresponding to the target market value of 7.388 billion yuan, lowered the target price to 37.80 yuan and maintained the "Buy-A" rating.
Risk tip: the expansion process of vehicle module customers is less than expected, alot demand is less than expected, and the rise of chip price is more than expected
