\u3000\u3 Shengda Resources Co.Ltd(000603) 712 Tianjin 712 Communication & Broadcasting Co.Ltd(603712) )
Event: the company released the annual report of 2021 and the first quarterly report of 2022. In the 21st year, the operating revenue was 3.45 billion yuan, an increase of 28% at the same time; The net profit attributable to the parent company was 688 million yuan, an increase of 32% at the same time. The operating income of Q1 in 22 years was 410 million yuan, an increase of 18.24% at the same time; The net profit attributable to the parent company was 214892 million yuan, an increase of 26.69% at the same time.
In the past 21 years, the company's performance has been stable, and the wireless communication terminal products have increased significantly
The company's revenue growth in the past 21 years benefited from the expansion of the market of special wireless communication products, which led to the steady improvement of sales scale and the growth of delivered products. (1) The revenue of special wireless communication terminal products is 2.465 billion yuan (YoY + 67.74%): in the field of ground communication, the order of traditional vehicle mounted products is stable, and new breakthroughs have been made in the market expansion of new generation ultrashort wave communication products, individual soldier terminals and new architecture weapon platform communication products; In the field of aeronautical communication, the traditional airborne terminal products have obtained batch orders. (2) The revenue of system products is 823 million yuan (YoY - 24.37%): the new integrated system products won the bid first, which can be popularized and applied on a variety of aircraft platforms in the future; The training evaluation system extends to multiple aviation platforms and continues to add strength to broaden the market track.
In the past 21 years, the cost increased slightly, and the R & D investment remained at a high level
In 2021, the price of upstream chips and some components fluctuated, which increased the cost of raw material procurement in the future to a certain extent, and the company's gross profit margin decreased by 0.53pct. During the period, the expense rate increased by 1.16pct, of which the sales expense rate decreased by 0.17pct; The financial expense ratio decreased by 0.24pct, mainly because the company's capital is in good condition and the scale of interest bearing liabilities is reduced; The management expense rate increased by 0.54pct, mainly because the company no longer enjoys the national social security exemption policy, and the management and operation cost increased; The R & D expense rate increased by 1.03pct, mainly due to the company's continuous strengthening of R & D investment and product technology innovation to promote the progress of scientific research tasks. The company has maintained high R & D investment for many years, laying the foundation for long-term growth.
Despite the increase in costs, the company's other income increased from 23.63 million yuan in 20 years to 40.2 million yuan in 21 years, mainly due to the increase in government subsidies; The net investment income increased from 14.02 million yuan in 20 years to 35.59 million yuan in 21 years, mainly due to the increase in investment income obtained from the disposal of trading financial assets. The company's net profit margin increased slightly by 0.55pct.
In the first quarter, the profitability of actual business was enhanced
The company's revenue increased by 18.24% in 2022q1. The gross profit margin of the company decreased by 1.12 PCT; During the period, the expense rate decreased by 2.55 PCT, of which the sales / management / R & D / financial expense rate decreased by 0.34/0.65/1.42/0.14 PCT respectively. Finally, the company's net profit attributable to the parent increased by 26.69%, deducting the net profit not attributable to the parent increased by 62.09%, and its profitability was enhanced.
The increase of inventory & contract liabilities confirms that orders are full
At the end of the 20th, 21st and the first quarter of the 22nd, the book value of the company's inventory was RMB 2.81 billion / 3.68 billion / 3.99 billion respectively, which was mainly due to the company's centralized reserves to prepare for the continuous growth of orders. The amount of products in process and goods delivered in inventory is large, and the goods delivered are potential performance increment. In addition, the contract liabilities of the company at the end of the year 20, the end of the year 21 and the end of the first quarter of the year 22 were RMB 1.162 billion / 1.276 billion / 1.308 billion respectively, which also confirmed the continuous landing of the company's orders.
Profit forecast and investment suggestion: as the leader of ultrashort wave communication, the company not only has a steady increase in the market share of equipment in traditional fields, but also develops from single task terminal products to multi task integrated systems such as command and control, task management, combat coordination, target monitoring and electronic countermeasures. Considering that the revenue growth of system products has been less than expected for 21 years, we adjusted the net profit attributable to the parent company for 22-24 years to 8.5/11.3/1.41 billion respectively, and the corresponding PE was 25X / 19x / 15x, which was lowered to the "overweight" rating.
Risk warning: the progress of contract execution is slower than expected, the development of Beidou application is slower than expected, the risk of technology research and development, and the risk of market competition exceeding expectations
