The Internet leader in the electronic components industry maintained the "Buy" rating company to release a mid-2021 report, with revenue of 9.987 billion yuan, an increase of 53.1 percent over the same period last year, and a net profit of 434 million yuan, an increase of 53.7 percent over the same period last year. We maintain the company's 2021-2023 return net profit forecast of 9.56,11.39 and 1.391 billion yuan, EPS of 0.91,1.09,1.33 yuan per share, the current stock price corresponding to PE is 16.3,13.7,11.2 times. The company's industrial Internet platform has entered a stage of high growth, maintaining a "buy" rating.
The electronics industry is booming, and revenue and profits are growing rapidly.
The company achieved an income of 9.987 billion yuan, an increase of 53.1% over the same period last year, mainly due to the expansion of the distribution business of electronic components and the rapid growth of the industrial Internet platform, and the income entered a period of rapid growth. Gross margin rose 1.1 percentage points to 11.7%, mainly due to a pick-up in the industry and the company's initiative to cut back on businesses with lower gross margins. The expense rate increased by 0.3 percentage points to 4.3%, mainly due to the increase in labor expenses under the increase in income scale. The net profit of deducting non-return was 428 million yuan, an increase of 63.4% over the same period last year. The net cash flow of operating activities has changed from positive to negative to-215 million yuan, mainly due to the rapid growth of distribution business and the existence of a certain cycle of payback.
Industrial Internet platform: business model verification, open growth space in 2019, the company set up a B2B industry Internet platform for the long-tail spot market. The sales scale of domestic electronic components is about 2 trillion yuan, and the corresponding long-tail spot market is hundreds of billions of dollars. at present, digital trading is still in its infancy. The company has deposited more than ten years of customer and transaction data, with first-mover advantage. In the first half of the year, the revenue of the platform was 1.043 billion yuan, an increase of 305% in the same caliber, and 105 million yuan in non-profit, an increase of 273%. The company's data-driven light asset model has been verified, the advantage is further highlighted in the shortage tide, and the future platform revenue will open up the growth space.
Electronic components distribution: the head advantage is prominent, start endogenous growth in 2014, the company began to layout electronic components distribution business, in the past few years through "epitaxial mergers and acquisitions + endogenous growth" two-wheel drive, has become the domestic electronic components distribution head enterprise, and start endogenous benign operation, prominent advantages in capital, technology, management, risk control. In the first half of 2021, thanks to the improvement of the prosperity of the electronics industry and the improvement of the company's market share, the distribution business achieved revenue of 8.645 billion yuan, an increase of 53.9% over the same period last year, and a profit of 277 million yuan, an increase of 104.8% over the same period last year.
Risk hint: the shortage of supply leads to insufficient stock; the development of online platform is not as expected.