\u3000\u3 Jointo Energy Investment Co.Ltd.Hebei(000600) 060 Hisense Visual Technology Co.Ltd(600060) )
Event: Hisense Visual Technology Co.Ltd(600060) released the annual report of 2021 and the first quarterly report of 2022. The company achieved revenue of 46.8 billion yuan in 2021, yoy + 19.0%; Achieved a performance of 1.14 billion yuan, yoy-4.8%; Deduct non attributable net profit yoy + 77.6%. After conversion, Q4 achieved a revenue of 12.88 billion yuan in a single quarter, yoy + 8.8%; Achieved a performance of 510 million yuan, yoy-17.5%; Deduct non attributable net profit yoy + 17.7%. In 2022, Q1 achieved revenue of 10.18 billion yuan, yoy-1.9%; Achieved a performance of 300 million yuan, yoy + 47.2%; Deduct non attributable net profit yoy + 83.5%. With the continuous upgrading of Hisense's product structure and the rapid growth of new display business, the company's profitability is expected to continue to improve.
The basic disc of traditional TV is stable: the trend of large screen in the TV industry has accelerated, and the high-end structure of the company's TV products has achieved remarkable results. The company owns three differentiated TV brands, Hisense, Toshiba and vidda, effectively covering middle-class, high-end families and young users. In 2021, the company's traditional TV sales were yoy + 20.9%, of which the TV shipments of 75 inches and above were yoy + 85.8%. Q1 company's revenue is yoy-1.9%. We judge that it is mainly due to the repeated epidemic in many places in China, and the offline channels and logistics distribution of color TV sets are affected. According to ovicloud, the sales of Hisense + vidda brand TV in 2022q1 is yoy-1.6%.
The laser TV business continues to grow rapidly: the laser TV industry will maintain rapid growth in 2021. According to Lotu data, China's laser TV shipments reached 280000 units in 2021, yoy + 32%. In the case of chip shortage, Hisense's sales volume of laser TV in 2021 was yoy + 34.2%, and its revenue was yoy + 25.0%. According to ovicloud, Hisense laser TV accounts for more than 80% of China's sales. In 2022, Hisense's laser TV product matrix continued to expand. In March, Hisense released l5g series laser TV, and the price of 75 inch products dropped to 7999 yuan, further expanding the target consumer group. In April, Hisense released 120 inch full-color laser TV to meet high-end consumer demand. With the downward cost of laser TV and the acceleration of channel layout, the development of laser TV business is expected to accelerate.
The panel price went down, and the gross profit margin of Q1 increased year-on-year: the gross profit margin of Q1 company was 17.4%, year-on-year + 1.0pct. Q1's gross profit margin increased year-on-year, mainly because the price of LCD panel fell sharply. According to wind data, the price of 2022q143 inch, 55 inch and 65 inch panels is yoy-44.1% / - 43.1% / - 25.9%.
Q1 profitability increased year-on-year: in 2022q1, Hisense's net interest rate was 2.9%, year-on-year + 1.0pct; The net interest rate after deducting non attributable assets was 2.2%, with a year-on-year increase of + 1.0pct. Q1 company's non parent net profit margin and gross profit margin are basically the same, mainly because the company's expense rate remains stable during the period. Q1 company strengthened the control of sales expenses, and the sales expense rate was -0.8pct year-on-year. Q1 company continued to increase R & D investment, and the R & D expense rate was + 0.4pct year-on-year. At the same time, the management expense rate of Q1 company was + 0.3pct year-on-year.
Q1 operating cash flow increased year-on-year: the company's Q1 operating net cash flow in a single quarter increased by 2.59 billion yuan year-on-year, mainly because 1) the company increased the recovery of notes receivable. Notes receivable of Q1 company was - 730 million yuan year-on-year; 2) After the correction of the company's price of raw materials, the reserve of raw materials decreased significantly. Q1 company's inventory year-on-year -1.13 billion yuan
Investment suggestion: Hisense Visual Technology Co.Ltd(600060) is the world's leading provider of display solutions. The implementation of mixed reform and equity incentive are expected to fully release the company's business vitality. The new display business composed of laser display, commercial display, cloud services and chips is developing rapidly and is expected to walk out of the second growth curve in the era of large display. It is estimated that the company's EPS from 2022 to 2024 will be 1.18/1.52/2.14 yuan respectively, maintaining the investment rating of buy-a.
Risk tip: the price of raw materials rises and the industry competition intensifies.
