The 21-year net profit of homing increased by 13.49%. The "Buy" rating company maintained its annual report of 2021 and quarterly report of 2022, with revenue of 4.874 billion yuan (+ 4.38% compared with the same period last year) and net profit of 849 million yuan (+ 13.49% compared with the same period last year). Previously expected to be 909 million yuan, lower than the expected value of 6.60%. In the first quarter of 2022, revenue was 454 million yuan (year-on-year-47.47%), and net profit was 15.41 million yuan (year-on-year-75.09%). The decline was mainly due to the fact that the epidemic affected the company's production, operation and delivery. Due to the uncertain factors of the epidemic, we downgrade the company's profit forecast. It is estimated that the company's net return profit for 22-24 years is 10.42 billion yuan (the expected previous value for 22-23 years is 11.82 yuan and 1.498 billion yuan), and the corresponding PE is 14-11-9 times. According to the consensus expectation of Wind, the 22-year average PE of the comparable company is 27X, while the company has a higher ROE level. It gives the company a target PE of 30X in 2022, with a target price of 43.97 yuan (the previous price is 61.51 yuan) and maintains a "buy" rating.
The net profit of homing has increased steadily in 21 years, and decreased in the first quarter of 22 due to the epidemic. In 2021, the company's performance has achieved steady growth, there is a certain differentiation in various businesses, and the gross profit margin has basically remained stable. Among them, the revenue of the core business of underwater acoustic electronic defense products was 1.981 billion yuan (year-on-year-2.46%), the gross profit margin increased to 36.97%; the revenue of special electronic products was 1.566 billion yuan (+ 18.32%), and the gross profit margin decreased to 41.24%; the revenue of electronic information products was 1.265 billion yuan (+ 1.76%), and the gross profit margin was reduced by 4.45pct to 24.96%. Revenue from professional and technical services and other businesses reached 24.7 million yuan (- 15.16% compared with the same period last year), and gross profit margin decreased by 0.2pct to 24.99%.
In the first quarter of 2022, as many of the company's subsidiaries were located in the Yangtze River Delta region, which was greatly affected by the rebound of the epidemic, revenue and net profit declined significantly. It is expected that as the epidemic is gradually brought under control, the company's performance is expected to return to the pace of growth.
The cash flow improved obviously, and the performance commitment of the subsidiary was well fulfilled. In 2021, the net cash flow generated by the company's operating activities was 609 million yuan (year-on-year + 255.25%), and the cash flow situation improved significantly. In 2021, with the exception of Shuangwei Intelligence, which was affected by the epidemic and the rising prices of raw materials, the other subsidiaries fulfilled their performance commitments.
There is a big space for marine information construction, and we are optimistic about the long-term development of the company.
At present, the level of marine informatization in China is weak, and there is much room for the development of underwater and surface information equipment. the company is the core supplier of underwater information equipment in China, and its underwater acoustic products account for a high proportion of income. its aquatic equipment is equipped with all kinds of surface / underwater warships in China, and the upgrade and replacement cycle is shorter than that of warships. It is expected that the company will develop steadily with the construction of our navy, in addition, the construction of underwater information system and the development of UUV will also lead to the growth of the company's core business of underwater acoustic equipment.
Risk tips: product quality and safety production risk, underwater information system construction and UUV slow development risk, operation and management risk caused by subsidiaries.
