Pan-security business is growing rapidly, maintaining a "buy" rating
According to the company's annual report, the 2021 income was 418 million yuan, an increase of 14.3%, and the net profit was 61 million yuan, down 40.3% from the same period last year. The non-return net profit was 51 million yuan, down 36.3% from the same period last year (the previous performance of KuaiBao was 452 million yuan in 2021, the net profit was 67 million yuan, and the net profit was 56 million yuan).
21Q4's single-quarter income was 226 million yuan, up 7.0% from the same period last year, while the net profit returned to its mother was 48 million yuan, down 41.6% from the same period last year. The net profit from non-return to home was 47 million yuan, down 37.6% from the same period last year. The main reasons for the decline in profits include increased investment in R & D and market expansion, and an increase in related costs. We estimate that the EPS of the company in 22-24 is 1.07 EPS 1.39 RMB, and the compound growth rate of return net profit is 33%, which is comparable to the average 22-year 1.22xPEG (wind) of the company. considering that the company has a complete layout from the center end to the edge end, we give 22e 1.4x PEG with a target price of 48.85 yuan (the previous value is 73.65 yuan) to maintain the "buy".
Opening up the pan-security market is expected to provide the driving force for growth
The company's media and cultural income in 2021 was 294 million yuan, down 0.6% from the same period last year. The income of the pan-security industry was 123 million yuan, an increase of 79.5%, accounting for 29.5% of the total income of Prida, and an increase of 24.4pct. With "Video + AI+ big data" as the theme, the company provides smart social governance and smart policing solutions, and has participated in dozens of pilot projects of social governance in various prefectures and cities in China. At the same time, the company insists on in-depth research and development of edge intelligent computing terminal products, combined with independent embedded hardware design research and development investment, 5G edge computing terminal is applied to customers in finance, energy, rail transit and other pan-security industries, to achieve transformation and upgrading from public security to pan-security business. We believe that on the basis of ploughing the field of media culture, the company will vigorously open up the pan-security market and form a series of scene services, which is expected to provide continuous growth impetus for the company.
Increase the investment in R & D and enhance the core technological competence
The company continues to carry out technological innovation and accumulation, increasing R & D investment and talent reserve. In 2021, the company invested 91 million yuan in R & D, an increase of 46.9% over the same period last year, accounting for 21.8% of the company's operating income. The company independently developed the next generation ultra-high definition video coding technology, clear horizon coding technology, intelligent video analysis technology, intelligent portrait recognition technology, intelligent edge video processing technology and other core technologies. The company strengthens R & D investment, continues technological innovation in the field of media culture and pan-safety, strengthens core technical capabilities related to in-car intelligent entertainment cockpit in the intelligent network connection automobile industry, and further expands the product layout.
Pay attention to the development of pan-security services
In view of the decline in the income of the media culture business, the revenue forecast will be lowered. Consider that the company will strengthen the development of the pan-security field, increase the related cost investment, and raise the expense rate forecast. The income forecast of 22-24e was adjusted to 552, 726, 000)
Risk hint: the landing progress of UHD is not as expected; the landing of edge computing products is lower than expected.
