Revenue and profit maintained good growth in 2021: operating income recorded in 2021 was 50.928 billion yuan, an increase of 27% over the same period last year. The comprehensive gross profit margin decreased by 1.1% to 16.8% due to the impact of the epidemic, rising raw material prices of global household appliance enterprises and rising logistics costs. The net profit of homing increased by 13.5% to 1.634 billion yuan. It is proposed to pay a final dividend of HK23 cents per share, with a dividend ratio of 30.4%. The company announced that the after-tax profit in the first quarter of 2022 will drop by 35% compared with the same period last year, mainly due to 1) the unrealised loss on the fair value of the derivatives portion of the convertible bonds issued by a non-wholly-owned subsidiary of the company; and 2) the unrealised loss on the fair value of listed equity securities held by the group as a result of the decline in the share price of listed equity securities at fair value into profit or loss. Excluding these two factors, after-tax profit is expected to grow by no less than 100% in the first quarter of 2022.
TV business restructuring, profitability is expected to repair: as one of the leaders in the color TV industry, due to the weak demand and epidemic situation in the TV industry, global shipments reached 13.98 million units in 2021, down 18% from the same period last year.
Although the overall sales volume has declined, the company actively launched new products, adjusted the product structure, and led to an increase in the overall unit price so that the business sales of the intelligent TV system increased by 10% to 22.57 billion yuan. Kukai system has covered more than 118 million intelligent terminals in China, with revenue of 1.23 billion yuan, an increase of 16.9 percent over the same period last year. The turnover of intelligent system technology business recorded 10.91 billion yuan, an increase of 24.8% over the previous year. It continued to give full play to the advantage of intelligent set-top box market share, and achieved a new breakthrough in set-top box sales among the three major domestic communication operators.
New energy photovoltaic business is developing rapidly: in 2021, the company's new energy business revenue reached 4.1 billion yuan, an increase of 3843% over the same period last year, accounting for 8.1% of the total income, and cooperated with more than 60000 household photovoltaic power stations. In 2021, China's newly installed photovoltaic 54.88GW, of which distributed photovoltaic new 29.28GW, accounting for 53.4% of all new installed capacity, surpassed centralized power stations for the first time in history. The installed scale of household photovoltaic has increased rapidly, reaching 21.6GW, an increase of 113.3% over the same period last year, accounting for 39.4% of the new photovoltaic installed capacity. The company is committed to the layout of comprehensive new energy development, starting with household photovoltaic, providing complete solutions for a series of links such as power station development, design, construction, operation, management and consulting services. gradually develop business such as industrial and commercial photovoltaic, comprehensive intelligent energy management on the electricity side, and develop into an industry leader in the clean energy industry on the electricity side.
Adjust the target price of HK $6.31 to maintain the buy rating: the company will accelerate the transformation and continue to expand the five major business sectors. It is predicted that the net return profit of the company in 2022-24 will be 1.78 billion yuan. According to the segment valuation method, the photovoltaic business valuation center is 15 times PE in 2022, the traditional home appliance business valuation center is 8 times PE, and the modern service business valuation center is 5 times PE. Adjust the target price of HK $6.31 and maintain the buy rating.
Risk factors: lower-than-expected demand growth in photovoltaic industry; policy impact; risk of raw material price fluctuation