Event: the company's 2022H1 realized operating income of 93 million yuan (- 34.1%), net profit of-39 million yuan (- 246.3%), and non-return net profit of-42 million yuan (- 356.7%). The project confirmed that the rhythm and epidemic situation caused short-term performance disruption, which is expected to improve significantly in the second half of the year.
The revenue of video solution products is growing steadily, and the pan-security plate is under short-term pressure. The company's video solution products cover video content production domain, video content publishing domain, government service domain, monitoring domain and converged media cloud, including 5G+4K/8K/VR multi-scene live broadcast solution, XR studio system, VR panoramic video processing solution, etc. 2022H1 revenue has increased by 42% year-on-year, and a number of businesses have made steady progress. At the same time, the items issued in the 2022H1 ending inventory and the significant increase in contract liabilities are due to the "Arabian Television Video processing Technology system Procurement Project", which is expected to be confirmed by 2022H2. The main reasons for the decline in the pan-security plate are: (1) the epidemic has led to the cancellation or suspension of some projects, and the disruption of the supply of some hardware. (2) the income of 2021H1 rail transit business is higher, and the landing and acceptance cycle of this kind of projects is longer. (3) in the process of gradually cutting from the central end to the edge end, the promotion of the 5G edge computing terminal is not as expected.
Continuously high R & D investment and actively develop intelligent cockpit application scenarios. The R & D expenditure rate of 2022H1 reached 57.2%, which increased 27.6pct compared with the same period last year. The company focuses on next-generation ultra-high definition video coding technology, clear vision coding technology, intelligent portrait recognition technology, etc. Currently, based on the accumulation of video technology and industry experience, expand the application field of vehicle intelligent entertainment cockpit and create a "new entertainment, new office" mode in the car. And launch "intelligent cockpit multi-screen linkage" and "cockpit immersion atmosphere" service, charging model includes License and technology development fees, etc., open up new growth space, and smooth the seasonal characteristics of traditional business to a certain extent.
Coverage for the first time, give "overweight" rating: as a leader in ultra-high definition video, the company has deep technology in the field of video coding and transcoding. customers are all over new media and traditional media, three major telecom operators, Internet video, pan-security industry, intelligent Internet connection automobile industry. Recently, Sun Yanlong, the real controller of the company, voluntarily extended the lock-up period for the sale of shares for three years, demonstrating his confidence in the future development of the company. We predict that the company will achieve income of 5.01,7.41 and 1.073 billion yuan from 2022 to 2024, and net profit of 0.77,1.29 and 166 million yuan respectively. The previous PE valuation is 47x, 28x and 22x respectively, covering for the first time and giving "overweight" rating.
Risk hints: the risk of repeated epidemic situation; the risk of technology application falling short of expectations; the risk of industrial policy change.
