\u3000\u3000 Meig Smart Technology Co.Ltd(002881) (002881)
Event: the company released the performance forecast for 2021. It is estimated that the operating revenue will be 1.95-2.05 billion yuan in 21 years, with a year-on-year increase of 73.95% – 82.87%. It is estimated that the net profit attributable to the parent company in 21 years will be 110-125 million yuan, with a year-on-year increase of 300.87% – 355.54%. It is estimated that the net profit deducted from the non parent company in 21 years will be 72-87 million yuan, with a year-on-year increase of 343.42% – 435.80%.
Our comments are as follows:
High quality customer resources + market recognition + multi field layout to seize market opportunities
The market recognition of the company’s wireless communication module + solution business model continues to improve, and the scale of high-quality customer groups represented by global operators, brand customers and listed companies continues to expand. The company continues to develop customized 4G / 5G intelligent modules, and 5g intelligent modules realize mass delivery in the field of intelligent cockpit of new energy vehicles; Shipments of 4G / 5G data transmission modules increased rapidly compared with the same period last year, breakthroughs were made in the field of smart grid, and the layout of cloud computing, laptop, HD video and other fields continued to deepen. The company seized the market opportunity, gave full play to the accumulated advantages of R & D, and the shipment volume of products in the field of FWA (fixed wireless access) increased significantly. At the same time, the company responded to the impact of shortage and price rise of raw materials and continued to ensure and improve the profitability of products through comprehensive measures such as strengthening strategic goods preparation, price transmission, reducing cost and increasing efficiency in the supply chain and improving the shipment demand of high gross profit products.
The company has outstanding technical capability and continues to expand the market. It is expected to make breakthroughs in the future
On the whole: 1) the company’s 4G smart module shipments are in the forefront of the industry, and it is the first to launch 5g smart modules in the industry. At present, it has formed a complete product series of smart modules and has strong technology leadership; 2) The company’s leading customized development technology has formed large-scale applications in the core areas of the Internet of things such as new retail, intelligent Internet connected vehicles and 5gfwa, and has established a relatively deep industry accumulation; 3) After years of business development, the company has accumulated a number of high-quality customer resources represented by overseas leading brands, operators and listed companies. On this basis, the company continues to deepen cooperation with existing customers and expand the scope of customer groups. The company’s market foundation is constantly stable and developed, especially the overseas market is developing rapidly, It provides sufficient momentum for the long-term and stable development of the company. With its own technology leadership and continuous expansion of the market and customers, the company is expected to make continuous breakthroughs in its future development.
Profit forecast and investment suggestions: in the short term, the company has completed the disposal of precision components. At the same time, the Internet of things business continues to explore new markets based on strong technology and product capabilities, benefiting from the continuous breakthroughs of intelligent modules and intelligent terminals in intelligent logistics / payment, operators, face recognition and other fields, and the company’s performance is expected to usher in a significant reversal; In the medium and long term, relying on the technology and product development capabilities that accompany Huawei’s rapid growth, while strengthening efforts to make up for the shortcomings of the market and channels, the company is expected to expand rapidly and open up broad growth space in new technology fields such as operator FWA terminals, vehicle products and Siasun Robot&Automation Co.Ltd(300024) . Considering the company’s continuous layout in multiple fields, seizing market opportunities and the high-speed growth of products in various fields, the company’s estimated net profit attributable to the parent company in 21-23 years is adjusted to 119 million, 220 million and 312 million yuan (the original value is 119 million, 184 million and 274 million yuan), corresponding to 32 times of PE in 22 years, and the “overweight” rating is reiterated.
Risk tip: fierce competition in the industry; The development of Internet of vehicles and other markets is less than expected; Bad debt risk of accounts receivable; Exchange rate fluctuation risk; The performance forecast is the preliminary calculation of the company, and the actual situation is subject to the annual report of 2021.
