\u3000\u3 Jointo Energy Investment Co.Ltd.Hebei(000600) 060 Hisense Visual Technology Co.Ltd(600060) )
Performance review
On April 29, the company released the annual report of 21 years and the quarterly report of 22 years. The revenue in 21 years was 46.801 billion yuan, a year-on-year increase of + 19.0%; The net profit attributable to the parent company was 1.138 billion yuan, a year-on-year increase of – 4.8%, and the net profit attributable to the parent company after deducting non profits was + 77.6%. 22q1 achieved a revenue of 10.184 billion yuan, a year-on-year increase of – 1.9%, a net profit attributable to the parent company of 299 million yuan, a year-on-year increase of + 47.2%, and a net profit attributable to the parent company of + 83.5% after deduction. Performance exceeded expectations.
Business analysis
The annual report shows that the company’s sales volume increased by – 21.75% year-on-year, and the average price of main business increased by – 21.75%. In the past 21 years, the company continued to layout high-end large screen outside China, and the average price increased significantly. The smart display terminal achieved a revenue of 37.81 billion yuan in 21 years, a year-on-year increase of + 20.9%, the shipment volume was basically the same, and the average price was about + 20% year-on-year, which was better than the industry. The new display business achieved a revenue of 4.6 billion yuan in 21 years, a year-on-year increase of + 41%. Among them, the revenue of laser TV has increased by 25% in 21 years, and the expected shipment volume is 130000 units, with a year-on-year increase of + 34.2%, and the average price has decreased by about 7% year-on-year. On the profit side, the net interest rate attributable to the parent company in 21 years was 2.4%, with a year-on-year increase of -0.6pct. The gross profit margin was 15.8%, excluding changes in accounting standards, with a year-on-year increase of -1.6pct. Last year, the base of gross profit margin was high, and it is expected that the company’s high-cost panels still have inventory, which has shown a quarterly improvement trend. Q4 company’s sales expense ratio was 7.1%, excluding the changes in accounting standards, with a year-on-year increase of -1.7pct. The company continued to decline through the implementation of IPMS (integrated product marketing and sales) system and other measures.
The first quarterly report of 2022: the company’s Q1 Chinese product shipments increased by 14% at the same time, and the high-end process continued to accelerate. Due to the high base number pressure overseas, Q1 growth is temporarily under pressure, and it is expected to continue to improve after the second quarter. In terms of profit, the net profit margin attributable to the parent company of 22q1 was 2.93%, with a year-on-year increase of + 1.0pct, benefiting from the improvement of gross profit margin and operation efficiency, and the profitability of the company was repaired; Q1 gross profit margin was 17.4%, excluding changes in accounting standards, with a year-on-year increase of + 1.7pct, mainly benefiting from the decline of panel cost and high-end large screen layout.
Profit forecast & investment suggestions
We expect that the company’s revenue from 2022 to 2024 will be 54.58 billion yuan, 62.09 billion yuan and 70.48 billion yuan respectively, with a year-on-year increase of 16.6%, 13.8% and 13.5% respectively. The company’s net profit attributable to the parent company from 2022 to 2024 is expected to be 1.59 billion yuan, 1.91 billion yuan and 2.22 billion yuan respectively, with a year-on-year increase of 39.9%, 19.8% and 16.2% respectively. EPS is 1.22, 1.46 and 1.69 respectively. The current share price corresponds to PE of 8.9x, 7.4x and 6.4x respectively from 2022 to 2024, maintaining the rating of “overweight”.
Risk tips
The demand for laser TV terminals is lower than the expected risk; The cost reduction rhythm of laser display technology is lower than the expected risk; Price fluctuation risk of raw materials; RMB exchange rate fluctuation risk.
