Event: on January 29, the company issued an annual performance forecast for 2022, which is expected to achieve a return net profit of RMB 3.9-490 million, an increase of 155% over the same period last year, and a deduction of RMB 0.0-100 million, an increase of 100%. Compared with the same period last year, the company significantly increased and turned losses into profits; basic earnings per share are expected to be 0.2147-0.2698 yuan per share, and the results are in line with our expectations.
Meticulous operation, channel construction and product promotion "multiple measures", performance turnaround to achieve substantial profits:
As the company continues to promote fine management, the company's operating expenses have been effectively controlled, and the gross profit margin of the main products has improved steadily. At the same time, the company actively carries out channel construction, opens up industry partners, comprehensively promotes the new generation of digital products, achieves steady growth in narrowband basic disk business, and promotes the growth business to improve its layout and profitability. It is expected to achieve a net profit of 39-490 million yuan in 2022, of which the investment income generated by the sale of Sepura shares is about 290 million yuan. excluding this part of the impact, the company is expected to achieve a net profit of 100-200 million yuan, which is higher than that of 2021 (- 661 million yuan). In addition, some progress has been made in the lawsuit between the company and Motorola, and the issue of compensation needs to be further discussed.
Consolidate technological advantages, upgrade product layout, create fully converged communication solutions: continue to plough narrow band, the new generation of digital trunking products are highly recognized, and launch independent research and development of H-series products to consolidate the leading level of the industry; secondly, speed up the development of growing business, continue to promote the integration of public colleges in business platforms and other multi-level integration, and improve the solution In terms of 4G/5G broadband, we will work with operators and industrial partners to create 5G industry application benchmarking projects; in terms of command and dispatching, we will focus on the advantageous areas and create a new generation of comprehensive solutions for command centers.
Profit forecast and investment rating: in 2022-2024, we expect Heineng to achieve operating income of RMB 59.16 million and EPS of RMB 0.25 to 0.33 pound per share. The current share price corresponds to PE times that of 23-17-14. We continue to be optimistic about the steady growth of the company's future performance and maintain the "Buy" rating.
Risk hint: industry competition aggravates risk; macroeconomic fluctuation risk; litigation progress is less than expected risk; raw material price fluctuation risk
