1. Events
According to the company's quarterly report for 2022, Q1-Q3 realized operating income of 3.709 billion yuan, an increase of 4.30% over the same period last year; net profit of 395 million yuan, an increase of 3.47% over the same period last year; and net profit of 305 million yuan, down 3.28% from the same period last year. Of this total, the company Q3 achieved an income of 1.225 billion yuan, an increase of 9.85% over the same period last year, a net profit of 104 million yuan, a decrease of 3.35%, and a non-return net profit of 70 million yuan, down 20.96% from the same period last year.
2. When the profitability fluctuates and the cost is reduced to increase efficiency: the company's 22Q3 revenue increased by 9.85% compared with the same period last year, with a gross profit margin of 31.01%, and a decline in 5.37pct compared with the same period last year. We expect it to be mainly due to the decrease in the proportion of military business; the net profit rate is 8.29%, a decline of 2.06pct compared with the same period last year, and the overall profitability is under pressure.
The company continues to strengthen cost control, including the continuous promotion of intensive procurement, device optimization, production line integration and optimization, intelligent management, R & D project process cost management and other measures. The sales / management / financial expense rates of 22Q3 are 3.86%, 5.51%, 16.59%, respectively, with year-on-year changes-0.45/+0.04/-2.85pct, and the company continues to reduce costs and increase efficiency.
3. The intensity of stock preparation has increased, and the financial situation is under pressure: the monetary funds of 22Q1-3 decreased by 34.13% to 1.734 billion yuan compared with the same period last year, mainly due to the decrease in rebates compared with the same period last year; the advance payment increased by 148.95% to 267 million yuan compared with the same period last year, mainly due to the increase in the amount of advance payment caused by the stock preparation of contracts to be delivered and the advance reserve of raw materials this year. The company's operating cash flow needs to be further improved. The operating cash flow of 22Q1-3 decreased by 127.22% to-742 million yuan compared with the same period last year, mainly due to the increase in the scale of current payment and more concentrated rebates in the same period last year. We believe that the company's current monetary funds are still relatively sufficient, while the increase in stock will help to provide protection for the follow-up business, which is the necessary material investment in the early stage.
4. The market prospect of RF chip is broad, and the newly established chip company aims to improve the industrial layout: RF chip is an important part of wireless communication technology, and the high-end field has been occupied by foreign leading enterprises for a long time. With the promotion of national strategy and the acceleration of the process of localization, the demand for domestic RF chips will continue to increase, with a broad market prospect. The company invested and established Jingwei Tianteng in July, the company specializes in wireless communication RF transceiver and RF front-end, high-performance digital-analog hybrid, general-purpose devices and other chip research and development. The new chip product line can form a small chip industrial cluster with the original Beidou chip plate, and their advantages complement each other to improve the company's layout in the chip field, which is more conducive to the company's continuous expansion of the business scope of chip research and development. establish market competitiveness and form new business growth points. We believe that with the rapid development of wireless communication technology and the acceleration of domestic replacement process, the company's RF chip business will grow healthily with the landing of new production capacity, while Jingwei Tianteng implements employee shareholding, it will help to establish a benefit-sharing mechanism to fully mobilize the enthusiasm and creativity of employees and help the company to develop rapidly and continuously.
5. The forward-looking layout of the unmanned military market is expected to open the second growth curve: in order to seize the development opportunity of the unmanned system industry and obtain a larger market share and a better brand and market position, the company invested in setting up Tiansheng technology in July to build an unmanned business development platform and a capital operation platform in the unmanned field. In addition, Tianteng Industry, a wholly owned subsidiary of the company, successfully auctioned for 142 million yuan in September to obtain the land use right of state-owned construction land. We believe that this will help speed up the landing of the project in Tianteng Information Industry Base, promote the strategic layout of the company's unmanned systems, simulation and flight training, and help the company to open up the market scale of unmanned systems. enjoy the first-mover advantage and create new business income points.
6. Investment suggestions:
During the 14th five-year Plan period, satellite navigation and satellite Internet are key national support industries. As one of the leading manufacturers of Beidou, the company's performance growth momentum is expected to continue. Considering the uncertain impact of the epidemic, it is estimated that the revenue in 2022-2024 will be reduced from 61.45x83.54 billion yuan to 57.45pm 62.98 / 7.055 billion yuan respectively. The earnings per share decreased from 0.36 yuan to 0.37 yuan, corresponding to the closing price of 8.41 yuan per share on October 27, 2022, and PE was 20.1 times higher than that of 26.9 pound. Maintain a "buy" rating.
7. Risk tips:
Downstream orders are less than expected risk; competition aggravates risk; epidemic aggravates risk; Beidou application development is less than expected risk; systemic risk.