Events:
Company announcement mid-2021 report: 2021H1 achieved revenue of 842 million yuan, an increase of 36.83% over the same period last year, a net profit of 52.7 million yuan, a decrease of 38.40% over the same period last year, and a non-return net profit of 39.32 million yuan, a decrease of 40.22% over the same period last year.
Comments:
1. The performance exceeded expectations, and Q2's revenue in a single quarter increased by 51.6% compared with the same period last year.
The company's Q2 single-quarter revenue increased by 51.6% compared with the same period last year, and the homed net profit increased by 3.04% compared with the same period last year. Under the influence of many unfavorable factors, such as capacity relocation, raw material price increase, RMB appreciation and so on, the company's Q2 single-quarter profit maintained positive growth that exceeded market expectations. Affected by the increase in the price of raw materials and the rising labor cost of moving factories, the overall gross profit margin of 2021H1 Company was 37.62%, down 10.11pct from the same period last year, and the gross profit margins of general and industry information products were all reduced. The company's overall expense rate was 33.55%, down 2.11pct from the same period last year, including sales, management, and R & D expenses.
2. The income of industry information products is high, and the performance of many industries is outstanding. From the perspective of different industries, the income of 2021H1 industry information products is 615 million yuan, an increase of 74.68% over the same period last year. Among them, the revenue of the three major industries of "two passengers in danger", "rental" and "public transportation" is 328 million yuan, 106 million yuan and 105 million yuan respectively, with year-on-year growth rates of 121.1%, 146.0% and-5.84% respectively. The income from the front-loading business was 19.07 million yuan, an increase of 413% over the same period last year, while the revenue from innovation business was 21.93 million yuan, an increase of 694.53% over the same period last year. From a regional point of view, the company's domestic business recovered well after the epidemic. 2021H1's domestic income was 449 million yuan, an increase of 59.11% over the same period last year; overseas revenue was 393 million yuan, an increase of 17.95% over the same period last year. The landing applications of overseas business in Europe, the Middle East, Asia-Pacific and other places still grew steadily under the background of last year's high base.
3. The industry space is open, the competitive advantage is obvious, and we attach importance to the company's long-term value industry. We believe that the commercial vehicle video surveillance ceiling is high, and the domestic and overseas market space is opening under the dual drive of policy and technology; as for the company, we believe that the company has four major competitive advantages: scene-based AI technology accumulation, complete industry solutions, extensive channel layout, and high-quality mature application cases. Although the short-term performance of the company is under pressure under the influence of many factors, the market demand of the commercial vehicle video surveillance industry continues to improve, and the company has obvious competitive advantages as the industry leader. With the release of short-term unfavorable factors, we are optimistic about the long-term growth of the company.
Profit forecast and investment advice: we maintain our previous profit forecast. We expect the company's revenue from 2021 to 2023 to be 2.083max 2633pm RMB 3.265 million, respectively, and its net profit to be 2.46pm 340pm RMB 440 million respectively, corresponding to the current market capitalization PE of 30.48pm 21.99pm 17.02 times, maintaining the "buy" rating.
Risk hints: market competition aggravates risk; risk of persistent insufficient production capacity; risk of exchange rate fluctuation; risk of sustained price rise of raw materials; systemic risk.