Revenue performance in 21 years is under pressure. The company's revenue in 2021 was 473 million yuan, down 48.25% from the same period last year, and its net profit was 10 million yuan, down 94.57% from the same period last year. Among them, the revenue in the fourth quarter of 21 was 122 million, down 52.84% from the same period last year, and the net profit returned to the mother was-17 million yuan, a sharp drop from the same period last year. The decline in the company's revenue is mainly due to the further relaxation of the domestic policy on compulsory testing of motor vehicles since November 2020, resulting in a decline in the inspection of motor vehicles in 2021 and a decline in demand in the testing equipment industry.
Equipment business has been under pressure for 21 years, and the service business has performed well. According to the 21 annual report, the company's traditional equipment business is under pressure, of which the revenue from the motor vehicle detection system is 304 million yuan, down 62.06% from the same period last year, and the revenue from the supervision system of the testing industry (networking) is 21 million yuan, down 40.71% from the same period last year. However, the revenue from testing services performed well, including 57 million yuan from testing operation services, an increase of 67.48 percent over the same period last year, and 53 million yuan from testing operation value-added services, an increase of 79.79 percent over the same period last year. From the perspective of gross profit margin, the gross profit margin of testing equipment and testing services is basically stable, and the decline in the company's 21-year net profit is mainly affected by the decline in the scale of equipment revenue.
22Q1 is gradually stabilizing and is optimistic about the expansion of its service business. 22Q1's revenue was 117 million yuan, an increase of 9.88% over the same period last year, and its net profit was 15 million yuan, down 1.87% from the same period last year. Income growth resumed and profitability stabilized. We believe that after 21 years of "cold winter" in the industry, the demand of the industry is expected to pick up. According to the 21-year report, as of April 2022, the number of testing stations directly operated by the company is 38, 6 testing stations have been entrusted, and 11 have been acquired by industrial funds. Looking forward, we believe that the prosperity of the industry in 22 years is expected to improve, the company's testing service revenue and performance are expected to further grow, while equipment revenue is also expected to have a more obvious inflection point.
Considering the impact of the epidemic on the vehicle inspection industry, we reduced the company's EPS forecast for 2022-2023 from 0.70 to 0.62 to 0.62, with an additional 24-year forecast of 1.08 yuan. With reference to the comparable company's adjusted valuation, we give the company 2022 33xPE, adjusted to the target price of 20.46 yuan, to maintain the buy rating.
Risk hint
The adverse changes in industry policy, the expansion of testing stations are not as expected, the operation and management are not as expected, the operation of replacement stations is not as expected, the sustainability of charging pile projects is not as expected, and the changes in hypothetical conditions such as testing times and unit price affect the calculation results.
