Event: the company released a semi-annual report on 2022, with operating income of 93.2699 million yuan, a decrease of 34.11% over the same period last year, a net profit of-38.9021 million yuan, a decrease of 246.26%, and a non-return net profit of-41.8737 million yuan, a decrease of 356.66% over the same period last year.
The business revenue of video solution products is growing steadily, and the overall business structure is optimized. 1) 2022H1, the company achieved operating income of 93.2699 million yuan, down 34.11% from the same period last year, the overall gross profit margin was 30.21%, down 26.57pct, of which: video solution product revenue 75.18 million yuan, up 42.16%, gross profit margin 34.12%, 23.51 pct; pan-security product revenue 3.5671 million yuan, 94.47% lower than the same period last year, gross profit margin 40.42%, 26.89 pct The revenue from technical services is 14.5229 million yuan, and the gross profit margin is 7.51%, down 19.34 pct from the same period last year. The overall business structure has been optimized. The net profit of homing was-38.9021 million yuan, a decrease of 246.26% compared with the same period last year. 2) the short-term pressure on performance is mainly due to: first, the pan-security industry was affected by the epidemic, some projects were cancelled or suspended, and the base was relatively high in the same period last year; second, the company cut into the edge of the pan-security field, the promotion of 5G edge computing terminal products in new industries was slower than expected, and the supply of hardware equipment affected by the epidemic was blocked, resulting in lower-than-expected revenue. 3) according to the company announcement, Sun Yanlong, the controller of the company, voluntarily extended the lock-up period of restricted shares, showing his confidence in the future of the industry and the future development of the company.
Continuous R & D investment deepens competition barriers, and the rest of the expenditure rate is relatively stable. 1) at the end of 2022H1, the number of R & D personnel reached 269, the R & D expenditure reached 53.3642 million yuan, an increase of 27.34% over the same period last year, and the R & D expenditure rate was 57.21%, an increase of 27.60 pct over the same period last year. 2) except for R & D, the rest of the expense rate is relatively stable, including sales expense rate of 13.95%, year-on-year increase of 3.55 pct, management expense rate of 14.59%, year-on-year increase of 2.54 pct, financial expense rate of-5.86%, an increase of 2.26 pct.
Participate in the formulation of a number of domestic audio and video standards, achieve technological navigation under the independent tide, and the landing of tens of millions of US dollars overseas confirms the global leading position of core technology. 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) in 2022, Q1, the company signed a product sales contract with Yichao (Asia-Pacific) Co., Ltd. for the "Arabian TV Video processing Technology system Purchasing Project" with a contract amount of US $17.9317 million, which promoted the company's continuous landing of global market development and confirmed the company's global leadership in the core technology field of video processing.
Technology accumulation to achieve capacity transfer, intelligent network connection in the field of automobile has made a breakthrough. 1) relying on the company's leading technology of pure localization and corresponding landing capability in the video field, the company launched "intelligent cockpit multi-screen linkage" and "cockpit immersive atmosphere" products to provide immersive cockpit solutions for many car companies. to achieve the rapid landing and application of the ultimate audio and video experience of users in multi-scenes. 2) the company participates in standardization organizations such as 5G working Group, Star Flash Alliance, Software-defined Automotive working Group and Automotive Engineering Society, and will focus on further research and development of on-board intelligent entertainment cockpit in the future.
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 527 million yuan, 654 million yuan and 793 million yuan from 2022 to 2024, with a net profit of 75 million yuan, 100 million yuan and 122 million yuan, maintaining a "buy" rating.
Risk tips: industrial investment and policy progress is lower than expected; accounts receivable bad debt risk; income seasonal risk.