Core viewpoints
Event: the company released the annual report of 2021, with revenue of 3.143 billion yuan (- 20.27%) and net profit of 184 million yuan (+ 7.99%) in 21 years. Q4 realized revenue of 1.824 billion yuan (- 36.77%) and net profit of 218 million yuan (- 11.32%) in 21 years.
The scale of revenue has shrunk, but profitability has improved as a result of higher gross profit margins and a significant reduction in credit impairment losses. Revenue fell 20.27% in 21 years compared with the same period last year, mainly due to: 1) the implementation of new revenue guidelines for public safety products for the first time in 20 years, and the reduction of the impact of this factor led to a 51.61% drop in revenue in this sector in 21 years. 2) revenue from plateau cooking vehicles and staple food processing cabins declined, and revenue from mobile support equipment fell 38.55%. The 21-year performance increased by 7.99% compared with the same period last year, and the performance was significantly better than revenue, mainly due to: 1) the company's comprehensive gross profit margin increased from 2.76pct to 19.77%; 2) the loss of credit impairment decreased by 94 million yuan, and the income from asset disposal increased by 30 million yuan. Taken together, the net profit rate of sales increased to 6.00% even when the expense rate increased to 15.07% (+ 3.70pct).
Inventory increased by 20.06% over the beginning of the period. At the end of 21, the company's inventory was 1.718 billion yuan, an increase of 20.06% over the beginning of the period, of which in-process products and inventory goods increased by 34.66% and 56.19% respectively over the same period last year, mainly due to the increase in inventory caused by the commissioning of radar and radar supporting projects.
CLP Bo Wei listing platform, adhere to focus on the main business, to promote a new pattern of business development. As the listing platform of CLP Bo Wei, the value of the platform is worth paying attention to. Electronic equipment: backed by 38 strong radar institutes, the company occupies a leading position in the field of meteorology and air traffic control radar, further expanding the business of upgrading, overhaul, medium repair and technical services of low-altitude surveillance radar equipment in the past 21 years, and realize the development from a single service to a multi-service. Industrial foundation: the company strives to expand the series of products in the two major technical fields of passive circuits and active circuits, focuses on the application of whole machine equipment, and achieves a breakthrough in the technology and products of microwave components in spaceborne, missile-borne and other aerospace fields. Network letter system: the company focuses on Ping an City, Xueliang Engineering, Wisdom Prison, Intelligent Transportation and other major businesses, and continues to broaden new solutions for the public security, political, legal and transportation industries, consolidate market advantages and expand market share.
Profit forecast and investment suggestion
According to the annual report, the revenue is reduced and the gross profit margin is raised, the eps in 22-23 is adjusted to 1.36,1.58 (originally 1.24,1.32), the new 24-year eps is 1.95 yuan, with reference to the comparable company's 22-year average valuation of 31 times, giving the target price 42.16 yuan, maintaining the buying rating.
Risk hint
The product order is not as expected; the progress of restructuring and professional integration is not as expected.