\u3000\u3 China Vanke Co.Ltd(000002) 587 Shenzhen Aoto Electronics Co.Ltd(002587) )
Matters:
The company released the first quarter report of 2022. In the first quarter of 2022, the company achieved a revenue of 202 million yuan (15.38% YoY), and the net profit attributable to shareholders of listed companies was - 07 million yuan (- 432.65% YoY).
Ping An View:
The impairment of assets affected the profit, and the business gradually recovered: in the first quarter of 2022, the company achieved a revenue of 202 million yuan (15.38% YoY), and the net profit attributable to shareholders of listed companies was - 07 million yuan (- 432.65% YoY). In the first quarter of 2022, the company's overall gross profit margin was 36.92%, an increase of 3.93% year-on-year. The company's loss in the first quarter was mainly 125993 million yuan of asset impairment loss accrued in the first quarter of 2022 (under the background of uncertain external environment, in order to avoid future business risks, the company decided to terminate the construction of headquarters building and global R & D center, and decided to return the land use right, land use right and impairment provision for construction in progress); The income from changes in fair value was -2.19 million yuan, mainly due to the decline in the share price of Tonghui information (the company participated in the fixed increase of Tonghui information in 2021). Expense side: in the first quarter of 2022, the company's financial expense rate, sales expense rate, management expense rate and R & D expense rate were - 0.21% (-0.27pct YoY), 16.38% (-0.72pct YoY), 8.92% (-0.97pct YoY) and 9.90% (0.03pct YoY) respectively. The expense side was stable as a whole. The company has the ability of "hardware + software + content" to provide customers with comprehensive and one-stop solutions. At present, the company's solutions have been widely used in film and television, finance and communication, advertising, education, government and enterprises, leasing, cultural tourism night tour and digital content. Under the background of repeated overseas epidemics, the overseas market is facing great uncertainty. The company further strengthens the development of the Chinese market, expands the Chinese sales team and continues to sink the market segments. As of the annual report of 2021, the newly signed contracts of the company in the financial and communication, film and television, education, government enterprises and advertising markets were RMB 430 million, RMB 200 million, RMB 120 million and RMB 85 million, and the company's business gradually recovered. In addition, the company launched a repurchase plan. The company plans to use its own funds to repurchase the company's shares in the form of centralized bidding transaction. The repurchased shares will be used to implement the employee stock ownership plan or equity incentive. The total capital of share repurchase is 10-20 million yuan
Fintech and led optimization to build an enabling management platform: in 2021, the company invested 890991 million yuan in R & D, a year-on-year increase of 9.91%, accounting for 9.23% of the annual operating revenue. In terms of hardware, the company has the core technology of mini led multi in one and the self-developed 64K control system, which can design, develop and manufacture professional LED display equipment and other intelligent display terminals for customers in various industries. In terms of software, the company has obtained 203 software copyrights, and the company's software development engineers account for more than 40% of the company's total R & D personnel. LED display field: the company adheres to the marketing strategy of big market and big customers, and provides customers with high-quality high-end LED display solutions with innovative technology and stable performance. Relying on the first mover advantage of mini LED display products, the company has increased the development of market segments such as conference rooms. In the field of TV studio, the company has provided intelligent video solutions for world-famous TV institutions such as China Central Television, Jiangsu TV, BBC TV, Sky TV and NBC TV. In 2021, the company provided solutions and products for more than 20 large international airports and transportation hubs outside China, including Singapore Changi International Airport, Dallas International Airport, Houston International Airport, Chengdu Tianfu International Airport, Kunming Changshui International Airport, Qingdao Jiaodong International Airport, Sanya Phoenix International Airport, Beijing Metro, Tianjin Metro and other large transportation hubs.
Investment strategy: considering the impact of asset impairment loss and upstream raw material price rise on the company, we lowered the company's profit forecast for 22 / 23 years and added a 24-year profit forecast. It is estimated that the company's net profit attributable to the parent company from 2022 to 2024 will be 69 / 115 / 142 million yuan (the original value in 22 / 23 years is 127 / 156 million yuan), and the corresponding PE will be 36 / 22 / 18 times. The company continues to develop LED display and financial technology business, especially mini LED display products, which are expected to gradually increase in volume. However, considering the recovery rhythm of the company's overall business, the company maintains its "neutral" rating.
Risk tips: 1) risk of exchange rate fluctuation: part of the company's main business is sold abroad and calculated in foreign currency, and exchange rate fluctuation will have a certain impact on its financial expenses. 2) The epidemic spread exceeded expectations: if the epidemic spread exceeded expectations in the future, it will have a great impact on the resumption of work of some companies and have a certain impact on industrial chain companies. 3) Risk of uncertain trend of Sino US trade friction: if the trade friction between China and the United States worsens further, it will have a certain impact on industrial chain companies. 4) Risk of bad debt of accounts receivable: with the expansion of the company's business scale and business diversification, the project collection cycle of different sub industries may be different, and uncontrollable factors may cause bad debt losses in the future.
