Event: on June 21, 2022, the State Administration of Radio, Television and Television issued the opinions on further accelerating the Development of High-definition and Ultra-High-definition TVs (later called "opinions"). Put forward the overall requirements, key tasks and safeguard measures for the development of high-definition ultra-high-definition television.
With the acceleration of the ultra-high definition video industry, the leaders of the big video industry will continue to benefit. 1) it is pointed out that by the end of 2025, national prefecture-level and above television stations and conditional county-level television stations will have completed the transformation from SD to HD in an all-round way, SD channels have basically been shut down, and HD TVs have become the basic broadcasting mode of television. ultra-high-definition TV channels and program supply form the scale. At the same time, the radio and television transmission coverage network has significantly enhanced the carrying capacity of high-definition and ultra-high-definition television, and the receiving terminals of high-definition and ultra-high-definition television are basically popular, setting a clear schedule for the intergenerational evolution of the ultra-high-definition industry. 2) according to the Action Plan for the Development of UHD Video Industry (2019-2022), it is estimated that the scale of UHD video industry will reach 4 trillion yuan in 2022. This opinion release will accelerate the development of UHD video industry. The company is one of the few high-tech enterprises with independent research and development capabilities of high-end products in the video coding software development market, and is the core supplier of 4K/8K UHD real-time encoder products. As a leader in the big video industry, it will also continue to benefit.
Participate in the formulation of a number of domestic audio and video standards, achieve technological navigation under the tide of independence, and continue to invest in R & D to deepen competition barriers. 1) the company has profound core technology accumulation in the field of video coding and transcoding, and the main technical team has accumulated more than 20 years of experience and technology. at the same time, it is also a member of China Digital Audio and Video Codec Technical Standard working Group. At present, AVS has achieved a breakthrough in domestic standards, and the company is the core formulation participant. at the same time, HDR Vivid, the first domestic HDR video standard, has also been verified, and the company has also participated in the drafting. 2) at the end of 2021, the company had 235 R & D personnel, accounting for 70.15% of the total, R & D expenses reached 91 million yuan, an increase of 46.89% over the same period last year, and the R & D expenditure rate was 21.75%, up 4.83 pct over the same period last year. The company attaches importance to the incentive of R & D personnel, promulgates the incentive system of patents and soft works, and raises the average annual salary of R & D personnel from 202600 to 271900. In 2021, the company applied for 78 invention patents, obtained 38 new patents, and obtained 70 soft works. The core competition barrier continues to deepen.
2022Q1 won a large single Xu Li growth, tens of millions of dollars overseas large single landing confirms the company's global leading position in the field of video processing core technology. In 2022, Q1, the company and Yichao (Asia Pacific) Co., Ltd. signed a product sales contract for "Arabian TV Video processing Technology system Purchasing Project" with a contract amount of US $17.9317 million, which will not only have a positive impact on the company's operating results in 2022 and promote the company's continuous landing of global market expansion, but also confirm the company's global leading position in the core technology field of video processing.
Maintain a "buy" rating. Through continuous R & D reserves, the company has accumulated profound video core technology in many scenes. In the future, 5G maturity and policy support will accelerate the landing of ultra-high-definition video, and the company will benefit as a leader in video codec. The company is expected to achieve operating income of 583 million yuan, 741 million yuan and 935 million yuan from 2022 to 2024, with a net profit of 92 million yuan, 124 million yuan and 157 million yuan, maintaining a "buy" rating.
Risk tips: technical risk; industrial investment and policy implementation progress is lower than expected; accounts receivable bad debt risk intensified; income seasonal risk.
