Investment strategy:
Affected by the epidemic, the business revenue and profit rate decreased year-on-year.
In terms of revenue, according to the Ministry of industry and information technology, in February 2022, the revenue of software business increased by 11.6% year-on-year, and the total profit changed from positive to negative year-on-year – 7.6%. In March, the revenue of software business increased by 11.6% year-on-year, which was the same as that of the previous month, and the decrease of total profit by – 3.9% year-on-year improved. This is the first time that the total profit has decreased year-on-year since February April 2020;
In terms of cost, the net profit margin of sales was 1.71%, a year-on-year decrease of 2.03%, while the gross profit margin was 23.65%, a year-on-year decrease of 2.05%, and the decline ratio of the two was basically the same;
We believe that the overall performance of the computer sector is affected by the following factors:
1) repeated outbreaks have greatly affected production and operation;
2) most of the downstream customers of computer companies are governments and enterprises, and their funds are relatively tight and their demand is relatively limited;
3) lack of core and other components limit the supply and lead to rising costs.
We believe that we should pay attention to the industrial Internet and smart car sectors with relatively good performance:
In terms of revenue growth, the revenue growth rate of intelligent vehicles was 43%, much higher than that of the other ten industries;
In terms of parent net profit margin, the parent net profit margin of industrial Internet and smart cars increased, including industrial Internet (13.44% to 19.18%) and smart cars (7.58% to 8.25%); The highest net profit rate attributable to the parent company is industrial Internet, which is 19.18% in 2022q1;
In terms of net cash flow from operating activities, industrial Internet and smart cars increased significantly, industrial Internet (120299 million) and smart cars (- 335232 million);
Huizhou Desay Sv Automotive Co.Ltd(002920) 2022q1 net profit attributable to parent company: 318 million (+ 39%), Shanghai Baosight Software Co.Ltd(600845) net profit attributable to parent company: 455 million (+ 14.85%), Hand Enterprise Solutions Co.Ltd(300170) net profit attributable to parent company: 348 million (+ 185856%)
Market review:
The performance of the computer industry decreased slightly last week, by 3.63%.
The top ten gainers in the computer sector are mainly intelligent manufacturing, industrial Internet and intelligent automobile.
Risk tips: the international situation is turbulent and the risk of foreign interest rate hikes, the risk of repeated epidemics and market sentiment, the risk that the implementation of policies is less than expected, the implementation of technology is less than expected, the actual construction of hardware is less than expected, the downstream demand is less than expected, and the supply of chips and other components is insufficient.
