The company's 2021 performance is lower than we expected.
The company announced its 2021 results: realized income of 418 million yuan, year-on-year + 14.3%; net profit of 61 million yuan, year-on-year; and non-return net profit of 51 million yuan,-36.3% of the same period last year. In a single quarter: 4Q21's income is 226 million yuan, + 7.0% compared with the same period last year; the net profit returned to the mother is 48 million yuan,-41.6% compared with the same period last year; and the non-return net profit is 47 million yuan,-37.6% from the same period last year. Affected by the 1Q22 epidemic, the company delayed the receipt of some orders in 2021, resulting in the company's performance lower than we expected, income and return net profit respectively lower than the performance KuaiBao 3356 million yuan.
Trend of development
Media and cultural business is under pressure to focus on the progress of Arab orders in 2022. In 2021, the company's media and culture industry achieved revenue of 295 million yuan, down 0.64% from the same period last year, mainly due to the slower-than-expected landing progress of some of the company's large orders, which will be delayed to 2022 for delivery confirmation. Looking forward to 2022, we believe that the focus is on the large $17.93 million order signed between the company and Al-Arabiya, which is expected to be delivered to the ground by the end of the year, taking into account the progress of the construction of the Arabian TV project. this has led to a substantial growth in the company's media and culture business. We believe that this order is a benchmark order for the company to go to sea, and driven by it, the company is expected to continue to obtain orders overseas with deep technology accumulation, which will help the company to open up its growth space.
Won the bid for Beijing 8K broadcast and control platform project, hundred cities and thousands of screens construction is in progress. On March 29, 2022, the company won the bid for "Beijing 8K Ultra High definition Outdoor large screen networking, broadcast and Joint Control" related projects, with a winning bid amount of 8.5725 million yuan. According to the "hundred cities and thousand screens" ultra-high definition video landing activity notice issued by six departments including the Ministry of Industry and Information Technology, the promotion of 4K/8K ultra-high-definition outdoor large screens will be initially realized by June 2023, with the first batch of candidates covering 28 public large screens in 20 cities across the country. We believe that the company's first-mover advantage in the 8K ultra-high definition field is expected to continue to harvest related orders in the "hundred cities and thousands of screens" project.
The initial volume of marginal computing products led to an increase in the gross profit margin of the public safety business. In 2021, the company's public security business achieved revenue of 123 million yuan, an increase of 79.5% over the same period last year, mainly due to the extensive landing of its marginal computing products in financial, energy, transportation, social and other scenarios. Due to the higher degree of standardization of edge computing products, the gross profit margin of the company's public safety business in 2021 was + 15.33ppt to 53.9% year on year. We are optimistic that the continued expansion of the company's edge computing products in the next two years will drive the company's public safety business revenue to achieve a compound growth rate of about 50% in 2022-2023.
Profit forecast and valuation
Taking into account the repeated domestic epidemic of 1H22, the company's order expansion and delivery may face some pressure, and the cost investment of the overlay company continues to increase, we downgrade the 2022 Lexus 2023 revenue forecast of 15.5% to 547 Universe 709 million, and the net profit 32.3% to 0.98 Plus 14.3 million. We maintained our outperforming industry rating, switched the valuation to 30 times 2023 p / e, and lowered our target price by 26.4% to 53 yuan, which is 31.5% higher than the current share price, which corresponds to 32.9 times 2023 / 22.6 times 2023 p / e.
Risk.
Repeated outbreaks have led to delays in signing orders; there is uncertainty in overseas business.
