\u3000\u30 Beijing Telesound Electronics Co.Ltd(003004) 96 Thunder Software Technology Co.Ltd(300496) )
Event: on the evening of April 28, the company released the first quarterly report of 2022. In 2022q1, the company realized an operating revenue of 1.153 billion (+ 45.81%), a net profit attributable to the parent company of 156 million (+ 41.36%), and a non net profit of 147 million (+ 53.12%).
The Q1 performance of the company was in line with expectations, and the business of intelligent vehicle and intelligent Internet of things continued to grow at a high rate. In the first quarter of 2022, the company achieved a revenue of 1.153 billion (+ 45.81%), of which the revenue of intelligent software business was 380 million yuan (+ 24.6%), the revenue of intelligent vehicle business was 355 million yuan (+ 50.4%), and the revenue of intelligent Internet of things business was 418 million yuan (+ 67.2%). Both intelligent vehicle and intelligent Internet of things business continued a high growth trend. Adhering to the strategy of globalization, the company integrates into the local industrial chain and provides customers with localized technology landing services. In 2021, the company’s overseas revenue was close to 40%. Relying on global R & D collaboration, customer stickiness and long-term accumulated organizational effectiveness, the company minimized the impact of the epidemic on the company’s operation, and achieved steady and rapid growth in the first quarter. In terms of expense rate, the company’s sales, management and R & D expense rates were 3.16% (+ 0.34pcts), 9.56% (- 1.11pcts) and 16.36% (+ 0.03pcts) respectively, basically maintaining the level of the same period last year. The growth rate of non net profit deducted by the company in the first quarter was higher than that of revenue, which also reflects the strong profitability of the company.
The company actively distributes the technologies related to vehicle OS and automatic driving. On February 26, the company reached a strategic cooperation with JAC group. The two sides will jointly establish a joint venture to focus on the fields of vehicle software, vehicle cloud platform and automatic driving. On April 18, the company announced the establishment of a joint venture with horizon. The joint venture will help OEMs and primary suppliers build an open automatic driving platform based on horizon journey series vehicle specification AI chips, relying on the company’s leading products and technical capabilities in the fields of operating system and middleware, as well as rich project implementation experience in key technologies of intelligent driving, As the “authorized software service provider” of horizon, it provides customers with services such as algorithm integration and optimization, software adaptation and development. The cooperation with horizon is expected to further deepen the company’s technical accumulation in the underlying hardware platform of intelligent driving, and the company’s technical layout in the field of intelligent vehicles is expected to be continuously improved.
The company will pay more attention to four R & D directions to enhance the company’s long-term competitiveness. Under the trend of “cloud edge end” integration of software defined automobile and Internet of things and expanding reality into the fast lane of development, the intelligent industry is changing rapidly. The company needs to continue to explore potential markets and improve product capabilities, so as to further consolidate the company’s leading position in intelligent connected automobile business and intelligent Internet of things business. In March this year, the company released the fixed growth plan for 2022, and plans to raise no more than 3.1 billion yuan for vehicle operating system R & D projects, edge computing station R & D and industrialization projects, extended reality (XR) R & D and industrialization projects, distributed computing network technology R & D projects, and supplement working capital. We believe that the fixed increase plan shows the company’s determination to increase investment in intelligent connected vehicles and intelligent Internet of things, and helps to support the long-term development of the two businesses.
Profit forecast and investment suggestions
According to the company’s first quarterly report of 2022, we predict that the company’s earnings per share from 2022 to 2024 will be 2.08, 2.92 and 4.11 yuan. With reference to the price earnings ratio of 58 times in 2022 given by comparable companies, the corresponding target price is 120.82 yuan, maintaining the buy rating.
Risk tips
The implementation of intelligent automobile is less than expected, the business expansion of intelligent Internet of things is less than expected, and the shortage of chips continues.
