\u3000\u30 Beijing Jingyeda Technology Co.Ltd(003005) 31 Urovo Technology Co.Ltd(300531) )
Event: on April 28, 2022, the company released the first quarter report of 2022, realizing a revenue of 297 million yuan, a year-on-year decrease of 1.76%; The net profit attributable to the parent company was 29 million yuan, a year-on-year decrease of 33.14%.
Downstream demand is strong, and the epidemic affects short-term delivery. We are optimistic about Q2 recovery and high growth throughout the year. Benefiting from the accelerated penetration of Internet of things applications and industrial digitization, the company has strong demand from customers in foreign industries in China. At present, the company has sufficient orders on hand. In the first quarter of 2022, the amount of new orders signed by the company was about 496 million yuan, a year-on-year increase of about 43.26%; As of March 31, 2022, the company’s undelivered orders amounted to about 396 million yuan, a year-on-year increase of about 198.54%. In the first quarter of 2022, the company’s revenue decreased by 1.76% year-on-year, and the net profit attributable to the parent company decreased by 33.14% year-on-year, which was mainly affected by the epidemic situation, the rise in the price of main raw materials and other factors. The multi-point outbreak of the epidemic in China in the first quarter, especially the control of the epidemic in Shenzhen in March, affected the delivery and implementation progress of some customers’ project products to varying degrees. The company actively expands production capacity and is expected to catch up with the progress of the whole year with more efficiency in the second quarter, looking forward to the growth of the company’s annual performance.
Share repurchase is intended to be used for employee stock ownership or equity incentive to demonstrate the company’s confidence in development. On April 29, the company announced the stock repurchase plan, which plans to repurchase 40 million yuan (including) – 80 million yuan (including) of shares for the implementation of employee stock ownership plan or equity incentive; The number of shares to be repurchased ranges from 1.68 million to 3.36 million, accounting for 0.51% – 1.02% of the total share capital of the company; The proposed repurchase price shall not exceed 23.80 yuan / share (inclusive); It reflects the management’s strong confidence in the company’s future development prospects and recognition of the company’s value.
“Digital economy” superimposes Hongmeng ecology, and the demand for all kinds of intelligent terminals has broad prospects. Intelligent mobile information application with Internet of things technology as the core is a typical application of digital economy, and the industry scene is extremely rich; The company takes IOT intelligent terminal products as the carrier to assist enterprises in intelligent and automatic transformation and upgrading, which is expected to benefit from the growth of digital demand in all walks of life. At the same time, with the promotion of Hongmeng ecological construction, the demand for tens of millions of Hongmeng terminals such as party, government and army warehousing and logistics and hospital inspection management terminals is being released. The company has actively participated in the open source Hongmeng project and the Hongmeng ecological construction of industry-level intelligent terminal of Internet of things. Some terminal products have completed the import and adaptation of Hongmeng system. It is expected to use Hongmeng to access a larger Internet of things ecosystem and open the product application boundary.
Profit forecast and rating: maintain the 22-24 year revenue forecast of RMB 1.783/24.55/3.288 billion and the 22-24 year return to parent net profit forecast of RMB 254/3.49/472 million; The EPS of 22-24 years is 0.77/1.05/1.43 yuan respectively, and the corresponding PE is 15x / 11x / 8x respectively, maintaining the “buy” rating.
Risk warning: market competition intensifies; Covid-19 epidemic situation is repeated; New business expansion was less than expected.
