\u3000\u3000 Meig Smart Technology Co.Ltd(002881) (002881)
Key investment points
Event: on January 21, Meig Smart Technology Co.Ltd(002881) released the performance forecast for 2021. In 2021, it is expected to achieve revenue of RMB 1.950-2.050 billion, yoy + 73.95% – 82.87%, parent net profit of RMB 110-125 million, yoy + 300.87% – 355.54%, and the performance is in line with our expectations.
The annual performance continued to increase, and the profitability continued to improve: in 2021, Meig Smart Technology Co.Ltd(002881) 4G / 5G module and FWA shipments increased significantly, and the sales revenue continued to increase. Although facing the adverse effects such as the price rise of upstream chips throughout the year, the company actively responded through good supply chain management, adjustment of shipment structure and other measures to ensure the growth of revenue and profit and the continuous improvement of operation quality. Among them, Q4 revenue in 2021 increased by 1.5% – 17.6% month on month, and deducting non net profit increased by 8.57% – 64.73% month on month. In terms of expenses, the annual amortization expense of equity incentive was about 18 million yuan. We strengthened the construction of sales team and market expansion in Europe, North America and Japan, resulting in a sales expense of about 36 million yuan, an increase of about 8 million yuan year-on-year; Expanding the sales team and increasing the R & D of 5g and on-board products resulted in R & D expenses of about 170 million yuan, a year-on-year increase of about 30 million yuan. We believe that Meig Smart Technology Co.Ltd(002881) as the leader of the intelligent module industry, we will deeply cultivate pan connection and automotive intelligence, deepen FWA business layout and accumulate the power for future performance growth.
The automobile intelligent business continues to make breakthroughs, and the volume and price will rise well in the future: the intelligent cockpit will continue to lead the intelligent automobile, Meig Smart Technology Co.Ltd(002881) and the volume and price will rise well. Firstly, from the perspective of volume, with the continuous improvement of the total number of vehicles and the penetration rate of new energy vehicles, the overall market demand continues to boom. At the same time, with the continuous improvement of multi screen demand in the future, the consumption of single vehicle intelligent module will increase; Secondly, from the perspective of price, the demand for intelligence puts forward higher requirements for the computing power, function and communication requirements of the module, and the trend of centralization is becoming more and more obvious. Therefore, the value of single vehicle will increase steadily. In 2021, the company continued to focus on the customized development of 4G / 5G intelligent modules, and 5g intelligent modules delivered in large quantities in the field of intelligent cockpit of new energy vehicles. We believe that the current Meig Smart Technology Co.Ltd(002881) automobile business continues to make breakthroughs and the performance contribution will be further improved.
The smart grid business continues to make breakthroughs and deepen the business layout of laptop and HD Video: in 2021, the shipment of 4G / 5G data transmission modules increased rapidly compared with the same period last year, making a breakthrough in the field of smart grid. In the future, the layout in the fields of cloud computing, laptop and HD video will continue to deepen. We believe that the demand for Pan connectivity continues to grow steadily, Meig Smart Technology Co.Ltd(002881) based on its own technology and product advantages, it will achieve continuous breakthroughs and bring sufficient performance power in the future.
Profit forecast and investment rating: with the steady improvement of the demand for the Internet of things and automotive intelligence, the Meig Smart Technology Co.Ltd(002881) module will achieve rapid improvement in 2021. Therefore, we raised the revenue forecast for 2021 from RMB 1.83 billion to RMB 1.97 billion. The revenue forecast for 2022-2023 remains unchanged and the net profit forecast remains unchanged. The EPS forecast for 2021-2023 is RMB 0.66/1.10/2.00 respectively, and the PE valuation corresponding to the current market value is 58 / 35 / 19 times. Taking into account the continuous development of the company’s new business formats such as automobile intelligence, the operating efficiency has been steadily improved and the “buy” rating has been maintained.
Risk warning: the progress of automobile intelligent business is not as expected; Industry competition intensifies risks.
