Steady growth in 21 years and 22Q1 performance, strong growth in smart families, maintaining a "buy" rating
The company released its 21 annual report, with annual revenue of 3.6 billion yuan, an increase of 49.6%, and a net profit of 244 million, an increase of 15.7%, lower than KuaiBao's 290 million yuan in the previous period, mainly due to the impact of some newly recognized impairment provisions. At the same time, the company announced 22Q1 results, achieving income of 1.29 billion yuan, an increase of 103.6%, and a net profit of 113 million yuan, an increase of 40.10%, continuing a strong performance growth trend. We maintain 22-23 years and add 24 years of home net profit forecast of 4.25 Wind 503 580 million yuan, 22 years comparable to the company's Wind consistent expectations of the average PE 15X, considering the effective promotion of the company's 5G communications business, meta-universe business can be expected, give 2022 16X PE, the target price of 48.64 yuan, maintain the "buy" rating.
Rapid expansion of smart home business, promotion of 5G communication equipment business
Under the background of the rapid construction of the "double gigabit" network represented by 5G and gigabit optical networks, the company's smart home business and 5G communications business have developed rapidly, with smart home business income increasing by 69.0% to 2.66 billion yuan in the past 21 years, contributing to major performance increments; the company has sufficient orders on hand, and its share among operators has further increased. According to the announcement, the unexecuted order size of Shenzhen Zhaoneng, a subsidiary, is about 5.233 billion yuan by the end of 21. In addition, the company officially launched 5G communications business in 21 years, won the first large-scale commercial bid for 5G communications equipment in July, and further expanded related product lines in December, including access network and bearer network products. to achieve a cumulative bid amount of about 904 million yuan (including tax) for 5G communications business, 5G communications business is expected to become a new engine of growth. The mobile reading business has developed steadily, with an increase of 12.8% in revenue in 21 years.
The change of revenue structure and other factors affect the level of gross profit margin, and the overall expense rate is well controlled.
In 2021, the company's gross profit margin also decreased to 14.96%, mainly due to: 1) the rapid growth of smart family business, and the increase in income share led to a decline in overall gross profit margin, including broadband network terminal equipment (gross margin 10.68%) and electronic components (gross margin 10.79%); 2) due to the development of new business models, mobile reading business also reduced gross profit margin by 10.3pct to 27.46%. 22Q1's overall gross margin is 14.55%. The overall cost side remained robust for 21 years, and the annual sales / management / R & D / financial expense rate was 1.06% 2.02% 0.45% 1.23%, respectively, compared with the same period last year + 0.17/-0.69/-0.49/-0.46pct.
22 years of smart family and 5G continue to expand, metacosmos business exploration to promote, maintain the "buy" rating
The company carries out business around operators' terminals and content applications, and constructs a smart family ecological industry chain of "terminal + platform + content application". Long-term cooperation with operators and continuously improving business strength have continuously helped the company to improve the scale of winning orders and business scope, and business growth trends such as smart families in the past 22 years are expected to continue. At the same time, the company cuts into meta-universe from the field of communication operators, and will continue to promote the key layout in the field of virtual digital human for 22 years, and plans to provide virtual digital human products from three levels: enterprise, family and individual. We maintain 22-23 years and increase the 24-year return net profit forecast to 4.25x503plus 580 million yuan, 22 years comparable to the company's consistent expectations of the average PE 15X, considering the effective promotion of 5G communications business, meta-cosmic business can be expected, give 2022 17X PE, the target price of 48.64 yuan (the previous value of 57.76 yuan), maintain the "buy" rating.
Risk tips: changes in industry policy, slow release of version numbers, and lower-than-expected progress and performance of new products.