Incidents:
The company released its 2022 mid-year report. It achieved operating income of 1,164 million yuan in the first half of the year, an increase of 62.15% over the previous year; net profit of Guimu was 242 million yuan, an increase of 74.64% over the previous year; after deducting net profit of non-Gumo's net profit of 227 million yuan, an increase of 68.05% over the previous year.
The company achieved revenue of 649 million yuan in Q2 2022, an increase of 28.34% over the previous year and an increase of 26.15%; Guimu's net profit was 141 million yuan, an increase of 35.19% over the previous year, an increase of 38.42% over the previous year; net profit after deducting non-Gumi's net profit was 132 million yuan, an increase of 31.57% over the previous year, an increase of 39.56% over the previous year.
Comment:
22Q2 performance reached a record high, and net gross margin increased month-on-month: in the second quarter of 2022, the company's operating income and net profit returned to the mother reached 649 million yuan and 141 million yuan respectively, reaching record highs; gross margin and net profit for a single quarter were 39.00% and 20.36% respectively, up 1.29pct and 2.27pct respectively from the previous quarter.
Launching full-link 8K products to the high-end market, providing complete automotive grade vision solutions: the company provides customers with high-performance video codec and AI SoC chips, ISP chips and complete product solutions, leading the market in the trend of inclusive AI. The company invests heavily in research and development of 8K ultra-high-definition video processing technology, AI ISP technology, H.266 video coding technology, high-performance multi-core heterogeneous SoC architecture design, advanced process processes, etc., and is committed to leading technological change in the industry while implementing epoch-making new products such as ultra-high-definition full-link 8K NVR chips.
Facing the smart car dealership market, the company's car-grade video chip series can achieve comprehensive coverage from in-vehicle rear-mount to in-vehicle front-loading, from cabin to exterior, from front-end cameras and transmission links to back-end hosts, providing complete domestic application solutions for Tier 1 and automakers.
Profit forecasting, valuation and ratings: The company achieved excellent results in the first half of 2022 and maintained a leading domestic position in the field of smart security; launched full-link 8K NVR products, successfully entering the high-end security market and opening up a new spatial pattern; comprehensive coverage of car-grade vision solutions is expected to fully benefit from the trend of automobile intelligence. We maintain our profit forecast for the company. The company's revenue for 2022-2024 is estimated to be 2,740/38.07/4.890 billion yuan respectively, and the net profit of the mother is 541/711/871 million yuan respectively. The current market value corresponding to PE is 27/20/17 times, maintaining the “buy” rating.
Risk warning: Security market demand falls short of expectations, and new product development and promotion falls short of expectations.