\u3000\u3000 Meig Smart Technology Co.Ltd(002881) (002881)
Event: on January 21, 2022, the company released the performance forecast for 2021, which is expected to achieve an operating revenue of RMB 1.95-2.05 billion, a year-on-year increase of 73.95% – 82.87%; The net profit attributable to the parent company is expected to be 110-125 million yuan, with a year-on-year increase of 300.87% – 355.54%; It is expected to realize a net profit of 72-87 million yuan after deduction, with a year-on-year increase of 343.42% – 435.80%.
Comments:
Intelligent module + data transmission module + FWA continue to make efforts, and the profitability continues to increase. According to the company’s announcement, the median operating revenue in 2021 is expected to be 2 billion yuan, with a year-on-year increase of 78.44%; The median net profit attributable to the parent company is expected to be 118 million yuan, with a year-on-year increase of 328.21%; It is estimated that the median net profit attributable to the parent company after deducting non-profit is 80 million yuan, with a year-on-year increase of 389.61%.
The company’s shipments of 4G / 5G wireless communication modules and solutions have increased significantly, with corresponding growth in sales revenue and increasing profitability. Specific businesses: 1) intelligent modules: the company continues to deepen the customized development of 4 / 5G intelligent modules, of which 5g intelligent modules have been commercialized in large quantities in the field of new energy intelligent cockpit; 2) Data transmission module: the company actively develops new application scenarios, makes breakthroughs in the field of smart grid, and continuously deepens the layout in cloud computing, laptop, HD video and other fields; 3) FWA: seize the market opportunity to realize the increase of shipment. In addition, the company has actively invested in R & D, expanded R & D personnel, expanded the sales team, and continuously improved the global layout, with sufficient growth momentum in the future.
In the field of intelligent modules, we work closely with Qualcomm to maintain the leading position in the industry
The company started the field of intelligent modules earlier and launched 5g intelligent modules for the first time in the industry. At present, it has formed a complete product series of intelligent modules and accumulated rich R & D technology and industry know-how in the field of intelligent modules. The company has long-term cooperation with Qualcomm and strong cooperation viscosity, which is conducive to the procurement and preparation of baseband chips and SOC chips. In the future, the company is expected to launch higher-performance intelligent module products under the condition of in-depth cooperation with Qualcomm, take the lead in seizing development opportunities and enjoying industry dividends under the background of accelerated development of the Internet of things and accelerated penetration of intelligence.
FWA intelligent terminal originates from Huawei, with strong R & D strength and wide development space in the future
Based on module technology, the company has formed a rich series of FWA terminal products. The company has been cooperating with Huawei for a long time and started cooperation with Huawei in 2014. As a provider of Huawei CPE solutions, it has accumulated rich R & D technical experience. At the same time, it has also carried out cooperation in PCBA, FWA and other business fields. With Huawei’s focus on pure soft, the company, as Huawei’s in-depth partner, has natural advantages in acquiring 5g CPE market share, The future development has strong certainty.
Launch vehicle modules and terminals, and open a new growth curve for vehicle business
The company actively arranges the on-board business line, develops vehicle specification level modules and on-board terminals, provides intelligent on-board solutions, and deeply arranges the whole industrial chain of intelligent networked vehicles. At present, the company has reached cooperation with China’s mainstream car manufacturers, actively explore new forces in car manufacturing, and continuously expand on-board business customers. In the future, the intelligent Internet connected car business will open a new growth curve for the company.
Profit forecast and investment rating
The company deeply cultivates “intelligent module + connected vehicle + FWA” and other tracks, attaches importance to R & D investment, and has a deep industry know-how. In the future, it is expected to continue to benefit from the development dividends of 5g and the Internet of things industry, and is optimistic about the long-term development space. It is estimated that the net profit of the company from 2021 to 2023 will be 111 million yuan, 208 million yuan and 288 million yuan respectively, and the corresponding PE will be 63.42 times, 33.77 times and 24.38 times respectively, maintaining the “buy” rating.
Risk factors
The development of the Internet of things industry was not as expected, the intensified competition in the Internet of things industry triggered a price war, and the covid-19 epidemic spread repeatedly
