Event: Xingwang Yudafa 2021 annual report, in 2021, the company achieved operating income of 768 million yuan, YoY+12.06%, gross profit of 46.97%, a year-on-year decline of 0.47pct; realized return net profit of 161 million yuan, YoY+46.29%; deducted non-return net profit of 147 million yuan, YoY+43.93%, net profit achieved rapid growth.
With the rapid growth of net profit, the satellite communications business has performed well. From a quarterly point of view, the company's 2021Q4 achieved a net profit of 77 million yuan in a single quarter, with a gross profit margin of 42.82% for YoY+171.20%;, an increase of 1.62pct over the same period last year, and a significant improvement in profitability. From a sub-business point of view, the satellite communications business signed a number of major contracts during the year, with revenue of 154 million yuan, YoY+53.96%; unmanned system revenue of 461 million yuan, still the company's largest business; information perception income of 142 million yuan, YoY+22.39%. On the expense side, the company's management expenses increased by 14.86% in 2021, which was due to the increase in the fees paid by managers and shares; the financial expenses decreased by 57.76% due to the reduction of long-term borrowing and reduced interest expenses; and the R & D expenses were 114 million yuan, YoY+26.63%.
Covering system-level and component-level products, the layout of intelligent unmanned system has been initially completed. In terms of system-level products, the company has a perfect pedigree of unmanned target aircraft products, and the annual delivery quantity of unmanned target aircraft ranks in the forefront of the country, and it is expected to expand to large-scale and long-flight unmanned aerial vehicles in the future; unmanned vehicles have been finalized and developed, among which unmanned vehicles have been delivered in small batches, gradually forming an integrated unmanned confrontation system of sea, land and air, and are expected to become the leading enterprises in unmanned combat in the future. In terms of component-level products, large-caliber "moving ZTO Express" antennas, fiber optic gyroscopes and optical fiber inertial navigation products have been developed, and photoelectric pods have become qualified suppliers for customers such as Haikang and Huawei. The company's system-level and component-level products have gradually emerged in the synergy between technology and customers, forming a strong core competitiveness.
It is optimistic that the self-driving high-precision positioning business will continue to develop. The company has a strong technology accumulation in the field of integrated navigation with the integration of satellite navigation and inertial technology. In the field of self-driving, it has achieved batch supply for key customers such as Meituan and Baidu, Inc. Apollo, and the annual shipment of autopilot high-precision inertial navigation system has exceeded 2000 sets. We are optimistic that the self-driving business will continue to expand in the field of mass production of passenger cars.
Profit forecast and investment advice: Xingwang Yuda is the leading enterprise of intelligent unmanned platform in China. we are optimistic that the company will achieve a breakthrough in the field of unmanned combat and self-driving with its excellent R & D capability. It is estimated that in 2022-2024, the company will achieve an operating income of 10.08 million yuan and a net profit of 289 million yuan, corresponding to EPS1.45/1.87/2.32 yuan, and maintain a "buy" rating.
Risk hints: the progress of research and development is not as expected and the risk of macroeconomic fluctuations