Event: the company announced its annual report in 2021 and quarterly report in 2022. In 2021, the company achieved revenue of 794 million yuan, an increase of 37.48% over the same period last year, and a net profit of 151 million yuan, an increase of 87.91% over the same period last year. In the first quarter of 2022, the company achieved revenue of 201 million yuan, an increase of 18.25% over the same period last year, and a net profit of 68 million yuan, an increase of 79.59% over the same period last year.
Integrated circuit revenue increased significantly in 2021, promoting the rapid growth of the company's performance. The company's integrated circuit products are mainly digital-analog mixed products dealing with analog and digital signals, with long product life cycle, high technical barriers, high investment, high cost and technical personnel experience, therefore, the competition pattern of the industry is relatively stable. In 2021, benefiting from the growth of market demand in the integrated circuit industry, the company increased the speed of new product launch and market development while ensuring the continuous improvement of the technical level. The revenue of the integrated circuit business reached 341 million yuan, an increase of 63.66% in the same period. It is significantly higher than the overall revenue growth rate of the company. We believe that with the continuous improvement of the equipment information level, the demand for digital and analog integrated circuit products will continue to grow, and the company's digital and analog integrated circuit products will continue to promote the company's performance growth.
The completion of the third-generation network of Beidou is expected to help the company open up its growth space. The company has ploughed the Beidou industry for many years, and its related products cover the whole industry chain of "components-terminal-system application" of Beidou satellite navigation. From Beidou No. 1 to Beidou No. 3, it has maintained strong product technology advantages and new product development capabilities. It is one of the leading enterprises in the field of Beidou navigation in China. After the completion of the second generation of Beidou network in 2013, the compound growth rate of Beidou products reached more than 50% from 2012 to 2015, which was significantly driven by Beidou network. With the completion of the global networking of the Beidou 3 satellite navigation system in 2014, the overall development and output value of China's satellite navigation and location service industry have increased obviously. according to the White Paper of the China Satellite Navigation and Positioning Association, the overall output value of China's satellite navigation and location service industry reached 403.3 billion yuan in 2020, with a compound growth rate of about 20.11% from 2020 to 2020. We believe that after the completion of the third generation of Beidou network, the company's ground terminal equipment is expected to usher in rapid growth, and the company's Beidou products are expected to help the company's performance to open up growth space in the future.
Investment suggestion: the company has been ploughing deeply in the digital integrated circuit and Beidou navigation industry for many years, and has accumulated abundant technology. With the continuous improvement of the equipment information level in our country, as well as the increasing demand for terminal equipment brought about by the third generation of Beidou network, the company's performance is expected to continue to grow. It is estimated that the company's net profit from 2022 to 2024 is 2.2,3.1 and 420 million yuan respectively, and the PE of the previous share price is 39, 28 and 20 times respectively.
Risk hint: the risk that the order of digital integrated circuits is lower than expected; the demand of Beidou third-generation terminal products is less than expected.
