Performance short-term pressure, R & D strategic investment in new business. The company realized operating income of 420 million yuan, an increase of 14.3% over the same period last year, and its net profit was 60 million yuan, down 40% from the same period last year. The deduction of non-return to its mother was 50 million yuan, down 36.3% from the same period last year. In the fourth quarter, the revenue was 230 million yuan, up 7% from the same period last year, and the net profit was 50 million yuan, down 41.6% from the same period last year. 50 million yuan was deducted from the non-return mother, down 37.6% from the same period last year. From the revenue side, the traditional media business was 295 million yuan, down 1% from the same period last year, mainly due to the reduction of revenue recognition from traditional radio and television projects, and the pan-security business increased by 79% to 120 million yuan, with a good growth momentum. On the profit side, the overall gross profit margin was 48.3%, down 1.4% from the same period last year, mainly due to a 6% decline in media revenue gross profit margin. The sales / management / R & D / financial expense rate increased by 1.7,0.8,4.8 and 0.03 percentage points, respectively. The increase in fees during the period was partly due to the impact of share-based payments (about 11 million in 21 years). On the other hand, due to the company's increased investment in research and development. Overall, due to the delay in revenue and the increase in R & D investment, the company's performance is under short-term pressure. With the pick-up of the company's media business and the gradual development of new business in the future, it is expected to return to the growth track.
Core technology leads the industry, and the development of ultra-high definition industry is accelerated. The company has always been a leader in video codec technology, deeply involved in the landing of a series of high dynamic range (HDR) video technology standards and pioneered the launch of 8K AVS3 HDR Vivid encoders, while 8K professional decoders lead the industry. With the development of 5G technology and the development of UHD video, the company has deeply supported the construction of CCTV 8K UHD channels and recently won a $17.932 million contract from Yichao (Asia Pacific).
In the future, with the investment of radio and television media, operators and Internet video in UHD video, as well as the promotion of "hundred cities and thousands of screens", the company will fully benefit from the development of UHD industry by virtue of its technological leadership.
Lay out new business and open up the growth space of the company. In 2021, the company invested 90 million yuan in R & D, an increase of 47% over the same period last year, accounting for 21.75% of revenue, reaching a peak in recent years. The company's R & D investment is mainly in the underlying video codec technology and algorithms, pan-secure 5G edge intelligent terminal and vehicle intelligence field and so on. In the second half of 2021, the company launched the Danghong Hawkeye 5G intelligent terminal, which provides the possibility for the realization of real-time transmission and real-time monitoring of massive video images, and is expected to become a standard product in the ultra-high definition video era; at the same time, the company actively lays out the intelligent vehicle field and applies its own video stream processing technology to the intelligent cockpit to enhance customer experience. Generally speaking, the market of 5G edge intelligent terminal and vehicle field is relatively broad, which is expected to become another growth pole of the company in the future.
Risk tips: customer demand weakens; intelligent terminal promotion is not as expected; vehicle intelligent business is not as expected.
Investment advice: cover for the first time and give a "buy" rating.
It is estimated that the 2022-2024 net profit from homing is 1.44x17x229 million yuan, a year-on-year growth rate of 134.0xx214pm 31.1%; diluted EPS=1.79/2.17/2.85 yuan, the current stock price corresponds to PE=26.1/21.5/16.4x. The company is a leader in ultra-high-definition video, giving it a "buy" rating.
