In the past 21 years, due to the epidemic situation and increased investment in R & D, the company's revenue recognition and profit release have been affected to a certain extent. We can think that with the recovery of the main business after the epidemic, superimposed epidemic prevention, AI+ industry applications and other new products, 22 years is expected to become the company's medium-and long-term growth inflection point, maintain a strong recommendation.
Event: the company issued an annual report, 2021 revenue of 1.127 billion yuan, YoY + 20.50%; return to the mother net profit of 179 million yuan, YoY-20.12%; deducting non-return net profit of 133 million yuan, YoY-34.92%. 21Q4 single-quarter income, homing net profit, deducting non-homing net profit YoY + 10.63% Uniqure 75.25% Universe 118.13%.
At the same time, the company announced 22Q1 income, homing net profit, deducting non-homing net profit YoY+46.11%/49.09%/43.65%.
Increased investment in R & D, superimposed epidemic and other factors, 21-year performance growth was dragged down. The company's annual revenue growth is mainly driven by the smart port inspection system solution business (revenue YoY + 23.43%), but the smart port business growth is slightly lower than we expected at the beginning of the year, mainly because most of China's ports were closed under the influence of the epidemic, most of the entry and exit business was at a standstill, and the delivery and acceptance of some of the company's projects were delayed. The decline of 9.05pct in Wisdom Port business is mainly due to the increase in the proportion of large projects and the expansion of new scenarios, while the gross profit margins of large projects and new scenarios are on the low side. In addition to the decline in gross profit margin, the main reasons are: 1) the company continues to increase R & D investment, R & D expenses YoY + 56.65%, of which the number of R & D personnel YoY + 27.25% (accounting for an increase in 8.38pct to 53.27%); 2) employee incentive expenses amortization of about 21.67 million yuan for the whole year; 3) due to the epidemic and settlement cycle, the return of some projects has been delayed, and the provision for asset impairment is 50.05 million yuan. Although there is the impact of delayed payback, the company's overall cash flow in the past 21 years is good. The cash received by selling goods and providing services is 1.054 billion yuan, YoY + 45.49%, and operating net cash flow is 148 million yuan, YoY + 230.16%. At the end of the year, the contract debt was 264 million yuan and YoY + 42.70%.
After the epidemic, the main industry is expected to increase the volume of new products, and it is expected to meet the inflection point in 22 years. The company's 22Q1 performance exceeded expectations, and we believe that the high certainty of the rapid growth of the annual performance is mainly based on the following judgment: 1) with the gradual elimination of the impact of the epidemic, the construction of domestic ports (especially aviation ports) will resume under the background of opening up after the epidemic, and the company's port business will gradually pick up. 2) under the normalization of scientific epidemic prevention, the overall epidemic prevention solution developed by the company has recently begun to land, and it is expected to achieve large-scale volume in border inspection, customs and other fields in 22 years. 3) the company's AI terminal products and cloud services have made great progress, and it is expected to achieve breakthroughs in vehicle networking, urban management, park management and other fields in 22 years. 4) the company and Huawei have launched solutions for ports and airports in overseas markets, and related products have been put into operation in a port in Oman in the past 21 years, a number of projects are expected to be launched in the 22nd year, and overseas revenue is expected to achieve high growth.
Maintain the "highly recommended-A" investment rating. It is estimated that the net profit for 22-23 years is 2.75, 377, and 513 million yuan, corresponding to PE 24, Universe, 18, and 13x. The port informationization leader, the competition barrier is deep, 22 years is expected to become the medium-and long-term growth inflection point, maintains the strong recommendation.
Risk hint: Port investment is not as expected; new business landing is not as expected; overseas market policy risk