Events:
On April 8, the company released its 2021 annual report. In 2021, the company achieved operating income of 3.5 billion yuan, an increase of 4.98% over the same period last year, a net profit of 1.111 billion yuan, an increase of 11.00% over the same period last year, and a non-return net profit of 1.061 billion yuan, an increase of 9.58% over the same period last year.
Comments:
1. Performance will continue to grow in 2021, and large advance receipts will improve cash flow. In 2021, epidemic prevention and control entered normalization, and the company maintained growth under the condition of a sharp decrease in revenue from epidemic prevention products over the same period last year, with annual revenue of 350000 yuan, an increase of 4.98 percent over the same period last year, and a net profit of 1.111 billion yuan, an increase of 11.00 percent over the same period last year. The company's sales gross profit margin is 55.93%, which is basically stable. During the period, the expense rate is 19.06%, which is lower than that of the same period last year (3.19pcts), and the cost is well controlled. The company's model products have signed batch purchase orders and received large advance payments. at the end of 2021, the company's contract debt was 662 million yuan, an increase of 185.20% over the same period last year. The company's financial situation is good. In 2021, the net cash flow of the company's operating activities is 1.207 billion yuan. At the end of 2021, the company has monetary funds of 2.483 billion yuan and transactional financial assets of 370 million yuan.
2. Successfully stepped into the overall unit of the complete equipment system, and the market competitiveness was further enhanced.
After successfully winning the bid for the overall complete equipment system of a certain model in China, the company successfully signed the first domestic batch purchase order at the end of 2021. In addition, the company won the bid for a key project in the first place, and received the scientific research funds allocated by the government, which is the second overall domestic complete equipment system project obtained by the company. In 2021, the company has achieved overseas delivery of complete equipment systems, expanding the company's influence among international customers.
The complete equipment system will be an important performance growth point for the company in the future.
3. The infrared detector pedigree is complete, and the performance of Gaoxin Company is growing rapidly. In terms of refrigerated infrared detectors, the company's Ⅱ superlattice detectors have leading advantages in long-wave, two-color, large-area array and other technical fields, and have won the bid for a number of major domestic models and will soon be used in a large number of advanced equipment projects; in terms of uncooled detectors, 640x512 @ 12 μ m wafer-level packaging has been finalized and continuously supplied to customers, creating a lot of economic benefits. In 2021, Gaoxin Technology Company achieved revenue of 1.071 billion yuan, an increase of 14.96 percent over the same period last year, and a net profit of 652 million yuan, an increase of 26.49 percent over the same period last year.
4. Military and civilian two-wheel drive, the advantages of model products are significant, and the market space for civilian products is broad. The company's model products have significant advantages in the field of key parts, and large orders have been signed one after another.
On December 15, 2021, the company announced a large order of 1.451 billion yuan for a certain model product; on March 31, 2022, the company announced an order of 269 million yuan for another model product. In addition, the company continues to expand new areas, for the first time to participate in a certain type of airborne optoelectronic pod project bidding, that is, the first and second place good results. In the field of civilian products, the subsidiary Xuanyuan Zhijia has successfully entered the infrared market for the front installation of electric passenger vehicles. While realizing the steady development of the traditional market business, the subsidiary Zhigan Technology has vigorously promoted the application of artificial intelligence, Internet of things, 5G, smart city and many other innovative industries, and gradually achieved great-leap-forward development in emerging application fields.
5. After the short-term impact of epidemic prevention products fades, the growth rate of the company's performance in 2022 is more worthy of expectation. In 2021, the domestic epidemic prevention and control has entered the normalization, and the sales revenue of the company's epidemic prevention products has decreased significantly compared with the same period last year. It is expected that the impact of epidemic prevention products on the company's performance growth will fade in 2022. Looking forward to 2022, the company's infrared chips, model products, complete equipment system products and civilian products are expected to maintain rapid growth, performance growth is more worthy of expectation. On April 8, the company issued a 2022Q1 performance forecast, which is expected to achieve a net profit of 310 million yuan to 358 million yuan, an increase of 30% and 50% over the same period last year.
6. Profit forecast and investment rating: we expect the company's net profit from 2022 to 2024 to be 14.67,19.02 and 2.321 billion yuan, an increase of 32%, 30% and 22% over the same period last year, and the previous share price PE is 28,21 and 18 times respectively, maintaining a "highly recommended" rating.
Risk tips: the purchase of military weapons and equipment is not as expected; the company lost in the bidding for important equipment; the expansion of civilian applications is not as expected.