\u3000\u30 Chongqing Baiya Sanitary Products Co.Ltd(003006) 38 Fibocom Wireless Inc(300638) )
The performance is in line with expectations and continues to maintain rapid growth. The company released the first quarter report of 2022. In the first quarter of 2022, the company achieved a total revenue of 1.18 billion yuan, a year-on-year increase of 37%, and the net profit attributable to the parent was 105 million yuan, a year-on-year increase of 30%, deducting 99 million yuan of non attributable net profit, a year-on-year increase of 41%..
The gross profit rate fluctuated slightly and the operating condition continued to improve. Affected by the price rise of raw materials, exchange rate fluctuations and product structure adjustment, the overall gross profit margin of the company in the first quarter of 2022 was about 22%, down about 3.11 percentage points compared with the same period of 21 years. Due to the high proportion of the company’s overseas revenue, the company’s overseas revenue accounted for about 58% of the overall revenue in 2021. Therefore, the fluctuations of exchange rate and freight have a great impact on the gross profit margin. The recent devaluation of RMB is expected to drive the repair of the profit quality of the company’s overall export business.
At the same time, the company’s expense side also contracted to a certain extent. In the first quarter of 2022, the company’s expense rate was 15.06%, a decrease of about 2.01 percentage points compared with the same period last year. The overall cost rate has shrunk to a certain extent, and the operation quality has continued to improve.
Inventory increased significantly to deal with the concern of core shortage. The industry demand of the downstream Internet of things is strong, while the lack of core in the upstream is very obvious in 2021. In the first quarter of 2022, the company’s inventory increased to 970 million yuan to ensure stable delivery under continuous strong demand.
The industry has enjoyed high growth and the leaders have continued to benefit. According to counterpoint, the global shipments of cellular IOT modules increased by about 60% year-on-year in 2021. Among them, the global cellular Internet of things module market revenue in 2021q4 increased by 58% year-on-year. CR10 accounts for 75.8% of the global market share, and the share of Chinese manufacturers continues to increase. As one of the leading manufacturers of global cellular Internet of things modules, the company is expected to continue to expand its advantages and increase continuously.
Profit forecast and Valuation: with the continuous outbreak of the Internet of things industry, the demand of the whole cellular module industry is rising. The company is a leading manufacturer in the industry. Stable operation, good sustainability of income growth, high efficiency of internal management and continuous improvement of development. We expect the net profit attributable to the parent company from 2022 to 2024 to be RMB 590 / 780 / 970 million, corresponding to 20 / 15 / 12 times of the current share price PE respectively, maintaining the “buy” rating.
The penetration rate of the car networking module is lower than the expected market, which indicates that the risk of the development of the PC networking module is lower than the expected market.
