Items:
According to the semi-annual report of 2021, the company achieved a revenue of 380 million yuan (3.97% YoY) in the first half of 2021 and a net profit of 11 million yuan (- 4.08% YoY) belonging to shareholders of the listed company.
Peace viewpoint:
Upstream materials rise affects profits, waiting for business to resume: the company released its semi-annual report of 2021 and reported revenue of 380 million yuan (3.97% YoY) in the first half of 2021, with a net profit of 11 million yuan (- 4.08% YoY) belonging to shareholders of listed companies. In the first half of 2021, the company's overall gross profit margin and net profit margin were 30.52% (- 6.87pct YoY) and 2.53% (- 0.52pct YoY) respectively, and the company's performance was lower than expected. on the one hand, the company's display screen was repeatedly affected by overseas epidemics, and overseas LED display business orders and business development recovered slowly. On the other hand, the rise in the price of upstream raw materials such as LED beads and display-driven IC has affected the company's gross profit margin since the first quarter of 2021. From a business point of view: the revenue of LED Apps and Financial Technology in the first half of the year was 253 million yuan (11.86% YoY) and 127 million yuan (- 8.83% YoY) respectively, accounting for 66.57% and 33.43% of revenue respectively, and the gross profit margin was 27.66% (- 6.59pct YoY) and 36.20% (- 6.27pct YoY) respectively. Cost side:
In the first half of 2021, the company's financial expense rate, sales expense rate, management expense rate and R & D expense rate were 0.11% (0.38pct YoY), 14.84% (0.77pct YoY), 9.52% (- 0.35pct YoY) and 9.72% (0.70pct YoY), respectively. Under the background of repeated overseas epidemics, the overseas market is facing greater uncertainty, the company further strengthens the development of the domestic market, expands the domestic sales team, and continues to subdivide the market, with active layout in the fields of film and television shooting, big transportation, finance and communications, education, government and enterprises, and the company's business is expected to recover gradually.
Financial technology and LED optimization to build an enabling management platform: the company continues to adhere to the "smart +" strategy, built its own content plate on the basis of the existing "hardware + software" model, and is committed to building an one-stop solution capability of "hardware + software + content". The company continues to grow
The investment in R & D was 36.9621 million yuan, an increase of 12.01% over the same period last year, accounting for 9.72% of the operating income. In terms of hardware, the company has Mini LED multi-in-one core technology and a self-developed 64K control system, which can design, develop and manufacture professional LED display equipment and other intelligent display terminals for customers in various industries. In terms of software, the company has obtained 203 software copyrights, and the company's software development engineers account for more than 40% of the company's total R & D personnel. LED display field: the company adheres to the marketing strategy of large market and key customers, and provides customers with high-quality high-end LED display solutions with innovative technology and stable performance. Relying on the first-mover advantage of Mini LED display products, the company increases the market development of conference rooms and other segments of the market. In the field of TV studio, the company has cumulatively provided intelligent video solutions for world-famous television organizations such as China Central Television, Jiangsu Television, British BBC Television, Sky Television, American NBC Television and so on. In the first half of 2021, the company has undertaken a number of television studio projects, including Qatar Aljazeera Studio 5, Switzerland's UBS and Germany's RBB. In terms of bank network intelligence, the company has provided intelligent solutions or related equipment for 1655 bank outlets.
Investment strategy: taking into account the impact of the overseas epidemic and the increase in the price of upstream materials on the company, we lower the company's profit forecast. It is estimated that the company's net profit belonging to the parent company in 2021-2023 will be 0.61 won 1.27pm 1.56 million yuan (the original value is 1.05pm 1.39pm 1.69), corresponding to the PE of 51-24-20. The company continues to develop LED display and financial technology business, especially Mini LED display products are expected to gradually increase volume, but taking into account the pace of recovery of the company's overall business, maintain the company's "neutral" rating.
Risk tips: 1) the risk of exchange rate fluctuations: some of the company's main business is sold abroad and calculated in foreign currency, exchange rate fluctuations will have a certain impact on its financial expenses. 2) the spread of the epidemic exceeds expectations: if the spread of the epidemic exceeds expectations in the future, it will have a greater impact on the resumption of work of some companies, and will have a certain impact on the industrial chain companies. 3) the risk of uncertain trend of Sino-US trade friction: if the trade friction between China and the United States worsens further, it will have a certain impact on the industrial chain companies.