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当虹科技(688039)2022年年度报告及2023年第一季度报告点评:多因素致业绩承压 车载业务拓展顺利

Danghong Technology (688039) 2022 Annual Report and 2023 First Quarter Report Review: Performance was pressured by multiple factors, and the automotive business expanded smoothly

國元證券 ·  Apr 28, 2023 00:00  · Researches

Incidents:

The company released the “2022 Annual Report” and “2023 First Quarter Report” after the market closed on April 27, 2023.

Comment:

Multiple factors have put short-term pressure on revenue and profits. The intelligent connected vehicle business achieved sales revenue of 331 million yuan in 2022. The company achieved operating income of 331 million yuan, a year-on-year decrease of 20.75%; the net profit of the mother was 98.5883 million yuan. The company's overall operating performance declined, mainly due to a combination of factors such as the macroeconomic situation and poor sentiment in the pan-security industry. At the same time as operating income declined, the company did not reduce corresponding R&D investment, and new businesses did not generate large-scale revenue during the year, leading to a decline in net profit. By industry, the media and culture business achieved revenue of 301 million yuan, an increase of 2.02% over the previous year; the pan-safety business achieved revenue of 30 million yuan, a decrease of 76.02% over the previous year; and the intelligent connected vehicle business achieved revenue of 0.1 million yuan. Targeting the pan-security industry, the company gradually adjusted its customer structure and focused on expanding 5G edge computing video sensing compression terminal products. The business of traditional security customers was drastically reduced, and new products were in a rapid start, so revenue declined. In the first quarter of 2023, the company achieved revenue of 52 million yuan, a year-on-year decrease of 23.58%; the net profit returned to the mother was -119 million yuan, a year-on-year decrease of 26.08%.

Media and cultural products continue to be enriched, and overseas business continues to expand

The company continues to enrich its media and culture products, expanding from individual products such as coding and transcoding equipment to mid-platform and platform-based products. The implementation of the company's “AI intelligent content review platform system” in the media industry has further accelerated; localization in the radio and television field has accelerated, and the market share of the company's localized products has further increased; the “One Hundred Cities, One Thousand Screens” business continues to expand, expanding from the provision of networked broadcast and control technology platforms to a “parallel technology and operation service” model, forming a one-stop business service system for outdoor large screen construction, broadcast control platform system construction, content operation, management and control. Major events promote the company's business development, and the company is deeply involved in many aspects of the Qatar World Cup video broadcast, including video content production, transmission, and distribution.

Actively developing customers in the intelligent connected vehicle business, the pan-safety business gradually adjusted the customer structure. The company actively expanded the in-vehicle smart cockpit business, established an ultra-high-definition and immersive cockpit product line based on immersive playback and video processing technology, focused on the cockpit scene of intelligent entertainment in the car, and created a “new entertainment and new office” in the car. In 2022, the company has completed the designation of a number of car companies, including many well-known domestic and foreign car companies such as BYD, Geely, Mercedes-Benz, Porsche, NIO, etc. The company's pan-security business focus is gradually focusing on the application of 5G edge computing video compression terminal products in various industries and the direction of digital government, with video sensing compression and AI capabilities as the core. The company's 5G edge computing video compression terminal products have been standardized and applied in various industries, covering industries including multiple outlets and analyzing scenarios where demand for compression and backhaul is strong: finance, energy, towers, power grids, electricity, ocean freight, etc.

Profit forecasting and investment advice

The company provides intelligent video solutions and video cloud services to fields such as media culture, pan-security, and intelligent connected vehicles, with broad scope for continuous growth. The company's revenue for 2023-2025 is predicted to be 578, 745, and 936 million yuan, net profit attributable to the mother is 0.81, 139, 192 million yuan, EPS is 101, 1.73, 2.40 yuan/share, and the corresponding PE is 54.82, 31.91, 23.05 times. Maintain a “buy” rating, taking into account the company's growth and the valuation level of the computer industry.

Risk warning

The risk of insufficient technological innovation and commercialization; the risk of increased market competition; the risk of fluctuations in raw material prices; the risk of accounts receivable exceeding the credit period.

The translation is provided by third-party software.


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