Main points of investment
Event: Haineng achieved a total operating income of 2.165 billion yuan in 2021,-28.94% compared with the same period last year, and a net profit of-122 million yuan,-146.58% compared with the same period last year. The basic EPS is-0.07 yuan, which is-148.44% compared with the same period last year.
The decline in H1 performance growth rate has narrowed, and the performance inflection point may reach: in the first half of 2021, the company's total operating income was 2.165 billion yuan, down 28.94% from the same period last year; and the net profit was-122 million yuan, down 146.58% from the same period last year. Since the first quarter of 2021, the company has been repeatedly affected by overseas epidemics, and there have been some delays in marketing activities in some countries and regions, so business progress has been hindered and performance has declined. Compared with the year-on-year growth rate of Q1BI in 2021, the year-on-year growth rate in the first half of 2021 gradually narrowed; at the same time, Q2 achieved operating income of 1.29 billion yuan in 2021, up 47.48% from the previous year. We believe that with the gradual release of external factors such as litigation and the epidemic, the inflection point of industry and income may gradually emerge.
The ability of cost control has been further improved, and the level of operation has remained stable: in the first half of 2021, the company incurred expenses of 851 million yuan, down 4.9% from the same period last year. Of this total, sales expenses were 351 million yuan, down 12.44% from the same period last year; management expenses were 337 million yuan, down 7.68% from the same period last year; and financial expenses were 162 million yuan, up 26.79% from the same period last year, mainly due to the increase in exchange gains and losses caused by exchange rate changes. In 2021, H1, the company's sales gross profit margin reached 49.40%, an increase of 0.61pp over the same period last year, an increase of 2.92pp on a month-on-month basis, and a steady increase in gross profit margin.
Tamp the technology leadership, strengthen the core competitiveness of R & D: the company revolves around the "2-3-3-1" business strategy, explores new business management models, and strengthens the ability of fully integrated solutions. The company has cooperated with a number of small base station manufacturers in the United Nations to develop 5G industrial Internet projects in many vertical industries such as industry and mining, and focus on expanding the operator industry private network market overseas. The company continues to promote the formulation of industry standards, promote the landing of templates, and continuously improve products and industry solutions such as PoC, multi-mode terminals, MCS platforms, law enforcement recorders and acquisition stations. At the same time, the company continues to optimize procurement strategies to cope with changes in the market, through domestic substitution, BOM cost reduction and timely and appropriate product price adjustment and other combination strategies to effectively deal with external difficulties such as tight supply and rising prices of raw materials. The company continues to increase investment in R & D and strengthen its core competitiveness. In the first half of 2021, the company incurred R & D expenses totaling 485 million yuan, an increase of 17.12% over the same period last year.
With the comprehensive promotion of digital marketing, there has been a significant increase in newly signed orders: the company continues to promote the reform of digital marketing and effectively improve the efficiency of communication with existing customers in the post-epidemic era. The use of marketing automation tools to effectively improve marketing accuracy and matching to help business development, and continue to create a dedicated network cooperation ecology and differentiated industry solutions. Thanks to the strong domestic epidemic control capacity, the economic situation has recovered rapidly, and the company has signed a significant increase in new orders.
In the first half of 2021, the company won the bid for the scientific and technological information integration of Kunming COP15 Conference, the construction of emergency communication system for Chengdu Universiade and other major activities, and signed the order for the integration project of Shenzhen Metro Line 12 of the fourth phase of Shenzhen Metro; the company won the bid for "Emergency Communication Network Project of Aragon Province of Spain" with Spain Telecom, and entered the cooperation system of large-scale multinational operators for the first time.
Profit forecast and investment rating: we maintain the 2021-2023 company's homing net profit forecast of 445max 485 million yuan, corresponding to the 2021-2022 EPS of 0.19 pound 0.23 pound 0.26 yuan, the current market capitalization corresponding to 2021-2023 PE27/22/19X, maintaining the "buy" rating.
Risk tips: the progress of litigation is not as expected; the construction process of large projects is not as expected; competition in the professional wireless communications industry aggravates the risk; overseas epidemic situation aggravates the risk.