Pay attention to the development of pan-security business and maintain the "buy" rating
The company released a quarterly report that 2022Q1 revenue was 68 million yuan, an increase of 10.2% over the same period last year, with a net loss of 15 million yuan, compared with a profit of 1 million yuan in the same period last year, deducting a net loss of 15 million yuan in the same period last year, and a profit of 1 million yuan in the same period last year. The main reasons for the decline in profits are: 1) the company's R & D investment based on new products and new industries has increased; 2) the use of idle funds to buy bank time deposits and the decrease of bank wealth management products. The company continues to strengthen its R & D investment, and the emerging pan-security business is expected to become an important driving force for revenue growth. We estimate that the EPS of the company in 22-24 is 1.07 EPS 1.39 RMB, and the compound growth rate of return net profit is 33%, which is comparable to the average 22-year 1.09xPEG (wind) of the company. considering that the company has a complete layout from the center end to the edge end, we give 22e 1.2x PEG with a target price of 41.87 yuan (the previous value is 48.85 yuan) to maintain the "buy".
Opening up the pan-security market is expected to provide the driving force for growth
2022Q1's revenue was 68 million yuan, an increase of 10.2% compared with the same period last year. The year-on-year growth rate of revenue in the single quarter was-16.5%, 7.0% and 10.2%, respectively, and the revenue growth rate recovered quarter by quarter. In the field of media business, according to the company's website, in April 2022, the company won the bid for Beijing 8K ultra-high-definition outdoor large screen "networking, webcasting, joint control" related projects, the winning bid amount was 8.5725 million yuan, and the 8K business gradually landed in the outdoor large screen scene. In addition, the company is actively exploring the pan-security market, exploring the application of 5G edge computing terminals in finance, energy, rail transit and other pan-security industries, transforming and upgrading from public security to pan-security business. We believe that the wealth of UHD video applications and the development of pan-security business are expected to provide continued growth momentum for the company.
Investment in R & D continues to increase, core technology capabilities continue to enhance 22Q1's sales expense rate of 9.8%, year-on-year increase of 1.1pct, management expense rate of 10.5%, year-on-year decline of 1.0pct, R & D expense rate of 36.9%, up 5.5pct. From the perspective of cost investment, the company continues to strengthen R & D investment and carry out technological innovation and accumulation. In the field of UHD, the company independently developed core technologies such as next-generation UHD video transcoding technology, clear horizon coding technology, intelligent video analysis technology, intelligent portrait recognition technology, intelligent edge video processing technology and so on. In February 2022, the World Ultra HD Video Industry Alliance (UWA) released the first technical standards for UHD video and audio transmission systems. The company participated in the formulation of all five alliance standards, and its position in the UHD field continued to consolidate.
In addition, the company actively promotes technological innovation in the field of pan-security, continuously accumulates technology in areas such as intelligent portrait recognition and intelligent edge video processing, and continues to enhance its core technology capabilities.
Pay attention to the development of pan-security services
The company continues to increase investment in research and development, and the emerging pan-security business is expected to provide continuous impetus for the company's growth.
To maintain the profit forecast, it is estimated that the income of 552max from 2022 to 2024 will be 726,933 million yuan, and the net profit of return to the mother will be 0.86 and 111 million yuan, respectively.
Risk hint: the landing progress of UHD is not as expected; the landing of edge computing products is lower than expected.
