Performance summary: in 2021, H1, the company achieved operating income of 840 million yuan, an increase of 36.8% over the same period last year, and a net profit of 52.7 million yuan, down 38.4% from the same period last year. The relocation of factories in the first quarter affected profit performance. in a single quarter, the company's Q2 realized operating income of 582 million yuan in 2021, up 51.6% from the same period last year. The net profit returned to its home was 72.24 million yuan, an increase of 3.0% over the same period last year. Revenue recovered rapidly and remained unchanged for long-term growth.
Commercial vehicle monitoring market space is huge, the company's leading position is solid. There have been many hidden dangers and pain points in the commercial vehicle industry for a long time, such as driver and passenger safety, operation control, standardized supervision and so on. Digital transformation is an inevitable means. The laws and regulations represented by the new "Tao" and the new national standard "GB/T 19056", which are about to land, have made clear requirements for the installation of vehicle video surveillance equipment, and the scale of the industry has expanded rapidly. The company is the first in the country and the second in the world in commercial vehicle video surveillance, with a global market share of 10% in 2017. in the future, it is expected to fully benefit from the improvement of the prosperity of the industry to achieve high-quality growth and highlight its long-term value.
Deep ploughing all kinds of commercial vehicle scenes to provide fine solutions. According to the safety pain points and operation supervision needs of different industries, the company provides a complete solution of "vehicle hardware + big data platform". It has accumulated deeply in many aspects such as brand, channel and technology, and there are many urban benchmarking projects. Among them, the company in the more mature scene such as public transportation and rental is in a stable position, and the future market share is expected to further increase with the replacement demand; the layout of companies in areas with low permeability such as two passengers and one danger and sanitation residue is in the lead, and the research and development of millimeter radar wave and other equipment is smooth during the reporting period, and in the future, it is expected to achieve a rapid increase in permeability and increase profit elasticity in line with the requirements of policy and other requirements.
Overseas markets are making efforts to increase the room for growth. The company's share of overseas revenue has increased rapidly, from 32% in 2016 to 46% of H1 in 2021, mainly due to the large-scale landing of the school bus law enforcement capture system and the rapid increase in product penetration in the freight market. The company's early investment in local operations has achieved initial results, the competitiveness of general products and industry solutions overseas has been greatly improved, and the room for growth has been further opened.
Profit forecast and investment advice. The compound growth rate of the company's homing net profit is expected to reach 23.9% from 2021 to 2023. With the release of demand driven by relevant policies, the company, as the absolute leader in domestic commercial vehicle safety and information solutions, is expected to expand its leading edge and achieve rapid business expansion, giving it a "buy" rating of 30 times PE in 2022, corresponding to the target price of 60.90 yuan for the first time.
Risk tips: raw material price rise risk; exchange rate fluctuation risk; the number of downstream commercial vehicles is less than expected; industry competition intensifies, and so on.
