Event: on April 15, 2021, Hanwang Science and Technology issued a forecast for the first quarter of 2021. Hanwang Science and Technology made a net profit of 1000-12 million yuan in the first quarter of 2021, compared with-4.3377 million yuan in the same period last year.
Q1 performance in 2021 is in line with expectations, and the performance has turned from deficit to profit compared with the same period last year. In 2021, the net profit of Q1 Hanwang's return to its mother is expected to reach 1000-12 million yuan, compared with the same period last year, which is + 330.54% and 376.64%, and the business performance has been greatly improved. The increase in net profit from homing is due to: 1) the revenue growth of intelligent interactive business (digital painting business, capacitor pen business, paperless signing business, etc.), text big data and service business and the overall gross profit margin; 2) benefiting from the new brand strategy, cross-border e-commerce layout and the promotion of overseas channels, the growth rate of digital painting business revenue is higher than the year-on-year growth rate of the national cross-border e-commerce sector in the first quarter of 2021. 3) the revenue of big data and service business in the areas of wisdom, politics and law increased compared with the same period in 2019 and the first quarter of 2020.
Looking forward to the whole year of 2021, Hanwang science and technology digital painting products will be upgraded again, and the channel + technology + products will contribute to the high growth of performance. 1) in 2021, the company will launch brands such as Xencelabs, which will be closer to top customers in the global professional market, meet the quality needs of the high-end market, and stabilize the brand position. 2) focus on the entry-level market with the UGEE brand, attract young enthusiasts by creating TOP rooms in major portals such as bilibili, Douyin, Tmall, JD.com, etc., and establish a youth brand image from beginners through cooperation with educational institutions and colleges, so as to further seize the consumer market. Take the XP-PEN brand as the main force in the intermediate products, gradually open up the domestic market on the basis of the steady overseas market, and make efforts both online and offline to form a strong brand matrix.
Investment suggestion: we estimate that the company's revenue in the next three years will reach 24.12,33.01 and 4.032 billion yuan respectively, and its net profit will be 2.05,2.39 and 272 million yuan respectively, corresponding to EPS of 0.84,0.98,1.11 yuan.
Risk tips: overseas market expansion is not as expected; the market demand for new products is not as expected; the technological production power is not as expected.