\u3000\u30 Fawer Automotive Parts Limited Company(000030) 40 Chutian Dragon Co.Ltd(003040) )
Event: the company released its 2021 annual report. In 2021, it realized an operating revenue of 1.309 billion yuan, a year-on-year increase of 27.67%; The net profit attributable to the parent company was 63 million yuan, a year-on-year decrease of 39.77%; The net profit attributable to the parent company after deduction was 60 million yuan, a year-on-year decrease of 34.92%.
The company released the first quarterly report of 2022, realizing an operating revenue of 263 million yuan, a year-on-year decrease of 5.33%; The net profit attributable to the parent company was 41 million yuan, a year-on-year increase of 139.15%; The net profit attributable to the parent company after deduction was 39 million yuan, with a year-on-year increase of 166.98%.
The gross profit margin increased in the first quarter. In 2021, the gross profit margin of the company’s sales was 25.43%, a decrease of 8.27 percentage points compared with the same period last year; In the first quarter of 2022, the gross profit margin of the company’s sales was 44.32%, an increase of 15.65 percentage points compared with the same period last year, mainly due to the increase in the income of social security card business with high gross profit margin.
The growth of social security card is expected to accelerate in 2022. By the end of the 21st century, the number of third-generation social security card holders was 138 million, with a penetration rate of about 10%. The third-generation social security card adds the functions of contactless card reading and small quick payment on the basis of the second-generation social security card. The number of social security card issuers is expected to accelerate in 2022.
Forward looking layout of digital RMB business. The company is the first to launch the digital RMB Hard Wallet with dual offline transaction function and the “visual card Hard Wallet” developed and produced by the company. In terms of research and development, the company has made forward-looking investment in the digital RMB Hard Wallet project, digital RMB terminal / equipment project and TSM trusted service management platform.
Investment suggestion: the company has made a forward-looking layout of digital RMB related businesses, which is expected to benefit from the progress of gradually promoting digital RMB in China. It is estimated that the company’s EPS from 2022 to 2024 will be 0.44/0.55/0.71 yuan respectively, which is rated as buy.
Risk tip: the sales of social security card is less than expected; The digital RMB business is less than expected; Industry competition intensifies.
