The company predicts that revenue in 2021 will increase by 23.4% compared with the same period last year, and net profit will decline by 35.2% compared with the same period last year. Danghong Science and Technology announcement announced its 2021 results KuaiBao: the company expects annual income of 452 million yuan in 2021, an increase of 23.4% over the same period last year; net profit of 66.68 million yuan, down 35.2% from the same period last year; deducting 56.09 million yuan of non-homed net profit, down 29.5% from the same period last year. In a single quarter, 4Q21's revenue was 260 million yuan, an increase of 22.8% over the same period last year, while its net profit was 53.45 million yuan, down 35.2% from the same period last year. Due to the slower-than-expected landing progress of some of the company's large orders, the revenue is lower than we expected; at the same time, the sales investment brought by the company's R & D and channel expansion continues to increase, so the profit performance is lower than we expected.
Pay attention to the main points
After the traditional radio and television projects have been delayed, the superimposed investment has put pressure on the performance. In 2021, due to the slower-than-expected landing of some orders in the radio and television media business, the company's revenue side did not perform as expected, and the profit side was under pressure. In 2021, the company increased investment in research and development and strengthened market expansion, so rising costs led to a decline in net profit performance compared with the same period last year. In terms of business progress, the performance of public safety business is outstanding, the company's investment in 5G edge computing and AI intelligent analysis has achieved some results, edge computing projects have initially landed, and traditional security business has achieved rapid growth. We expect public safety business revenue to double in 2021. The business line of radio and television media is making steady progress. Under the industry situation of continuous contraction of demand for traditional television stations, the company is still making business breakthroughs in high-quality platforms such as CCTV, and the revenue structure continues to be optimized. In 2022, according to the official announcement, the company supported the construction of CCTV console "8K Ultra High definition TV IP Integrated Distribution platform" to ensure the 8K live broadcast of the Winter Olympic Games 1; in addition, the company participated in the formulation of the first batch of "hundred cities and thousands of screens" UHD technical standards 2, we expect that the order and delivery of related projects will have a positive impact on 2022 performance.
Industry applications blossom, 2022 performance is expected to cash in. In recent years, the company has continued to infiltrate video technology into the vertical industry, increasing investment in immersive vehicle entertainment cockpit, multi-screen synchronization and other immersive technologies in 2021, and in 5G edge computing products continue to make efforts in telecom operators, banks and other industry expansion and channel construction, we expect related business to be realized in 2022. Throughout the year, we believe that the traditional radio and television media business is subject to the downstream budget, and the performance pressure remains. However, we expect that most of the 114 million yuan overseas orders received at the beginning of the year will be delivered in 2022, coupled with the confirmation of the Winter Olympic Games project in the first half of 2022, the performance in 2022 is expected to rise.
Valuation and suggestion
Considering that some large orders have been delayed and the cost investment continues to expand, we have lowered the 2021 / 2022 revenue forecast by 9% to RMB 452 million, and the net profit forecast by 43% by 26% to RMB 0.67 million. The revenue / profit in 2023 is RMB 790 million respectively. We maintain our outperform industry rating and lower the company's target price by 35% to 72 yuan based on 40x 2022 Pamp E, which is 34% upside from the current share price. The current share price corresponds to 30x/23x 2022 / 2023 Pmax E.
Risk
The progress of the marginal computing project is not as expected; the overseas business is uncertain.
