Event: on April 15, 2022, the company disclosed its 2021 annual report that the company realized 418 million yuan (+ 14.30%) in operating income, 61.3475 million yuan (- 40.34%) in net profit and 50.7052 million yuan (- 36.27%) in non-net profit.
The company's pan-security business is growing rapidly, and large overseas orders are expected to have a positive impact on 22 years of performance. In 2021, the company achieved operating income of 418 million (+ 14.30%), achieving steady growth, of which Q4 revenue growth rate (+ 7.04%) was better than that of Q3 (- 16.54%). Looking at the company's main business by product: 1 > the revenue of the company's video solution products is 251 million (- 6.11%). The reason for the slight decline is that the gross profit margin is 52.64% (- 3.57pct) due to the delay of some projects caused by the epidemic. The reason for the slight decline in gross profit margin is the increase in the cost of hardware procurement. 2 > the revenue of the company's pan-security products is 123 million yuan (+ 79.47%), and the gross profit margin is 53.90% (+ 15.33pct). The rapid increase in gross profit margin is due to the continuous volume of the company's standardized edge computing terminal products; 3 > the company's technical service income is 43 million yuan (+ 50.05%). On January 10, the company announced that it had signed a $17.93 million product sales contract with Yichao (Asia Pacific) Co., Ltd. if the project is carried out smoothly, it is expected to have a positive impact on the company's 22-year operating performance.
The company continues to increase R & D investment and actively explore new business scenarios. In 2021, the company's comprehensive gross profit margin is 48.30% (- 1.34pct), and its profitability is relatively stable. In terms of expense rate, the company's sales expense rate is 8.29% (+ 1.72pct), mainly due to the company's increased channel construction and market expansion efforts; the company's management expense rate is 7.36% (- 0.86pct); and the company's R & D expense rate is 21.75% (+ 4.83%), mainly due to the company's increased R & D investment in various product technology lines. In 2021, the company's R & D expenditure was 91 million yuan (+ 46.89%), and the proportion of R & D personnel was as high as 70.15% by the end of the year. The company continues to carry out technological innovation in the two major fields of media culture and pan-security, and actively invests in the research and development of cutting-edge technologies related to the intelligent entertainment cockpit in the field of smart vehicles.
With the landing of new products in the future, the company's business scene is expected to continue to expand.
5G edge computing terminal products are widely used, and the company has the ability to provide comprehensive solutions in the field of pan-security. The 5G edge computing terminal launched by the company can compress video to 10% of the bandwidth for transmission, saving transmission and storage costs for customers on the premise of ensuring video quality. at present, pilot projects have been launched in schools, hospitals, public security, rail transit, iron towers, energy, mines, banks and securities and other financial institutions. In addition, the "edge cloud collaboration" integrated solution provided by the company in the pan-security field connects the video front end, center end, edge end, bottom layer and operation layer, which can share the cloud functions that originally need high-end GPU servers to a more suitable edge environment, greatly improve the single-way performance-to-price ratio of video access, analysis and data applications, and fully empower the stock camera in the society. It has a wide range of applications.
According to the company's 2021 annual report, we believe that the company will maintain steady growth in the future. As the growth rate of the company's video solution products, gross profit margin and public safety products are lower than expected, we predict that the company will earn 1.02,1.29,1.62 yuan per share in 2022-2024 (the original forecast for 22-23 years is 2.36,3.17 yuan), with reference to comparable companies giving the company 45 times earnings in 2022. Corresponding to the target price of 45.90 yuan, maintain the buy rating.
Risk hint
The landing of UHD is not as expected, and the expansion of pan-security business is not as expected.
