The net interest rate growth rate for the full year of 2022 and 23Q1 was marginal improvement, and overseas business grew rapidly and profitability increased.
In 2022, the company achieved revenue of 10.296 billion yuan (+0.32% year on year), net profit of 135 million yuan (+119.21% year on year); 2023Q1 achieved revenue of 3.394 billion yuan (+39.52% year on year, net profit of 20 million yuan (+24.36% year on year), and overall performance was good.
Among them, the company's overseas telecommunications business revenue increased 81.33% year on year, and the overseas telecommunications business revenue increased from 21.65% to 33.22% of the telecommunications business. The high gross margin of the overseas business led to an increase in the profitability of the telecommunications business, and the gross margin of the telecommunications business increased 5.43 percentage points over the same period last year. Overall, as the company's domestic and overseas business revenue continues to increase, the company's future performance is expected to maintain rapid growth.
Communications performance is impressive and profitability has improved, and it is expected that it will continue to be the leader in the wireless coverage industry segment.
In 2022, the company's communications business revenue was 1,058 million yuan, up 18.21% year on year; gross margin reached 36.21%, up 5.43% year on year. Among them, in terms of communication operation business: satellite communications operating revenue was 119 million yuan, up 21.29% year on year; 5G communication infrastructure construction and operation revenue was 97 million yuan, up 69.88% year on year. The company's core projects, such as satellite communication operations and 5G communication infrastructure construction and operation projects, are developing rapidly. On the operator market side: the winning bid amount for procurement was 430 million yuan, the winning bid amount for provincial procurement was 158 million yuan, and the winning bid amount for 5G products exceeded 100 million yuan. The telecommunications business showed outstanding performance throughout the year. First, benefiting from the increase in the gross margin level of overseas communications business and the higher dollar exchange rate for export products, the significant increase in the overall profitability of the company's communications business led to a significant increase in the company's overall profitability. Second, the company's communication tower site resources have gradually increased, the sharing rate and scale effect have continued to increase, and the continuous research and development of intelligent ship products. The communication business has now become the company's main source of profit. In terms of the company's Internet advertising business, revenue reached 9.152 billion yuan. The company maintained cooperation with leading media companies such as Tencent and ByteDance, while actively adjusting the customer structure to increase the proportion of high-quality leading customers. The company combines the live streaming, brand advertising, content entertainment and other services of Giwang Technology, and uses an open platform for virtual digital people to create corporate image digital people and live digital people, and accelerate exploration in fields such as virtual digital people and AIGC. The company seizes the opportunity for the country to accelerate the construction of 5G communication infrastructure and continues to invest in research and development of key 5G core technologies, which is expected to continue to maintain its leading position in the domestic wireless coverage industry segment.
The company grasps that 5G can be expected to grow in the future for 6G, and continues to invest heavily in R&D to enhance its core competitiveness.
During the reporting period, the company invested 145 million yuan in R&D (+43.05% compared to the same period), and the company had 327 R&D personnel (accounting for 30.42%). In the future, the company will seize the opportunity for the country to accelerate the construction of 5G communication infrastructure, continue to invest in research and development of key 5G core technologies, and promote the rapid development of core projects such as satellite communication operations and 5G communication infrastructure construction and operation projects. At the same time, we are actively expanding overseas markets with high growth and high profit levels around the three business directions of wireless coverage, wireless networks, and wireless security. At the same time, in response to future demand for 6G integrated ubiquitous access in space, space, earth, and sea, we are promoting satellite applications in more scenarios and actively responding to the strong demand for global NaaS market opportunities. We are optimistic about the company's high growth in the future. Based on the company's 2022 results, we gave the company 2023E-2025E net profit forecast values of 165 million yuan, 209 million yuan, 262 million yuan, corresponding EPS of 0.20 yuan, 0.26 yuan, 0.32 yuan, and corresponding PE of 30.38 times, 24.08 times, 19.14 times, taking into account the core advantages of technology and products, and gave a “recommended” rating.
Risk warning: The impact of the global epidemic and uncertainty in foreign policies; exchange rate fluctuations; rising raw material prices; risk of fluctuations in customer demand; increased market competition, and marketing of new products fell short of expectations.