Event: on April 28, 2022, the company released a report for the first quarter of 2022, with revenue of 297 million yuan, down 1.76% from the same period last year, and net profit of 29 million yuan, down 33.14% from the same period last year.
Downstream demand is strong, the epidemic affects short-term delivery, and is optimistic about Q2 recovery and high growth throughout the year. Benefiting from the accelerated penetration of the application of the Internet of things and industrial digitization, the company's domestic and foreign industry customers are in strong demand. At present, the company has plenty of orders on hand. The amount of new orders signed by the company in the first quarter of 2022 is about 496 million yuan, an increase of about 43.26 percent over the same period last year. As of March 31, 2022, the amount of outstanding orders on hand is about 396 million yuan, an increase of about 198.54 percent over the same period last year. In the first quarter of 2022, the company's revenue fell 1.76% from the same period last year, and its net profit fell 33.14% from the same period last year, mainly due to the epidemic, rising prices of major raw materials and other factors. The impact of multiple outbreaks in China in the first quarter, especially in March due to the control of the epidemic in Shenzhen, has affected the delivery and implementation progress of some of the company's customers' projects to varying degrees. The company is actively expanding its production capacity and is expected to catch up with the progress of the year with higher efficiency in the second quarter, looking forward to the growth of the company's annual performance.
Share buyback is intended to be used for employee stock ownership or equity incentive to demonstrate the company's confidence in development. On April 29, the company announced a stock repurchase plan to buy back 40 million yuan (including)-80 million yuan (including) shares for the implementation of employee stock ownership plans or equity incentives; the number of shares to be repurchased is 1.68 million-3.36 million shares, accounting for 0.51% of the company's total share capital; the proposed repurchase price does not exceed 23.80 yuan per share (inclusive) It reflects the management's strong confidence in the future development prospects of the company and the recognition of the value of the company.
The "digital economy" superimposes Hongmeng ecology, and there are broad prospects for all kinds of intelligent terminals. The intelligent mobile information application with the Internet of things technology as the core is a typical application of the digital economy, and the industry scene is extremely rich; the company uses IoT intelligent terminal products as the carrier to assist enterprises in intelligent and automatic transformation and upgrading, and is expected to benefit from the growth of digital demand in various industries. At the same time, with the promotion of Hongmeng ecological construction, tens of millions of Hongmeng terminals, such as party, government and military warehousing and logistics, hospital inspection and management terminals, are being released. The company actively participates in the open source Hongmeng project and the industry-level intelligent terminal Hongmeng ecological construction of the Internet of things, some terminal products have completed the introduction and adaptation of the Hongmeng system, and is expected to access the larger Internet of things ecosystem with the help of Hongmen. open the product application boundary.
Profit forecast and rating: maintain revenue forecast for 22-24 and net profit forecast for home for 22-24; EPS for 22-24 is 0.77max 1.05; PE is 15x/11x/8x, respectively, maintaining "Buy" rating.
Risk hint: market competition intensifies; COVID-19 epidemic situation is repeated; new business development is not as expected.