This is the only listed company in China whose main business is sensors. The sensors produced by this company can provide strong support for the metaverse to perceive the physical world and the signals and information sources of all things.

This is the only listed company in China whose main business is sensors. The sensors produced by this company can provide strong support for the metaverse to perceive the physical world and the signals and information sources of all things.

In addition, the hydrogen sensor products developed by the company are relatively mature and can be applied in the entire industry chain of hydrogen energy .

With its strong competitiveness in the field of sensors, this company has also been rated as an specialized, special and new small giant enterprise by the Ministry of Industry and Information Technology. This title is the most authoritative honor in the evaluation of small and medium-sized companies in the country.

At present, the company's historical performance has achieved growth for two consecutive years, and hit a record high with a net profit of 263 million yuan in 2021. The company has made a qualitative leap during this year.

After the company's stock has fully corrected 57%, it seems to have embarked on a trend of increasing in volume and recently.

(At the end of the article, the translator will tell you the name of the company and the stock code. Please understand the basic situation of the company objectively and impartially before revealing the final answer)

Main business and core competitiveness

The one who answered the phone The secretary-general is a man with a very deep voice and a pretty good attitude.

During the conversation, the translator learned that the company is a leader in IoT solutions with sensors as the core.

The company’s revenue from public utilities accounted for 33%, revenue from smart city solutions accounted for 19%, smart environmental protection system solutions accounted for 17%, and revenue from sensors accounted for 12%.

In the company’s financial report, the translator learned that the flexible intelligent sensor developed by its subsidiary has high sensitivity and high stability, and will form a large number of applications in wearable devices, VR virtual reality equipment and other fields in the future.

The hydrogen related sensor products developed by this company have been applied in new energy vehicles, so this company has both the Yuanverse and hydrogen energy dual concepts.

The translator also learned from the secretary-general’s mouth that the company had distributed a total of 144 million yuan in cash since its listing. And in the past five years, dividends have been paid to shareholders, and the average proportion of dividends to net profit is about 10%.

The above is an introduction to the basic information of the company. Let's analyze the company's performance below.

Net profit performance

The following content and financial data are derived from the company's first quarter financial report of 2022, consolidated balance sheet on page 5, and consolidated income statement on page 8, and do not have any personal views. .

In the first quarter of 2021, the company’s net profit was 42.31 million yuan. By the first quarter of 2022, the company's performance reached 51.51 million yuan, a year-on-year increase of 22%.

The current net profit of this company ranks 32nd among the 114 listed companies in the A-share Yuanverse Concept Sector. This ranking is not low, indicating that its scale is relatively large.

After analyzing the size of the company, let's take a look at how this company pays its employees every year.

Since 2011, the annual salary paid by this company to employees and executives has increased for 11 consecutive years, and reached a record high in 2021 with a salary of 401 million yuan.

This shows that the company is currently in a period of rapid development and is recruiting and expanding every year.

The indicator of cash paid to and for employees comes from the cash flow statement, which records the company's annual salary payments to employees.

If this indicator continues to fall, it means that there is a problem in the company and the management is laying off employees to reduce expenses.

If this indicator continues to rise, it means that the company is in the development stage and the management is constantly recruiting new people, so this indicator is very important.

Through the above analysis, we know that in the first quarter of 2022, this company is not only large in scale, but also currently in a period of rapid development.

Reasons for performance growth

Let's analyze an important question, what are the reasons for the growth of this company's net profit, and whether these factors can continue.

By using DuPont theory analysis, the translator found that the main reason for the company's performance growth in the first quarter of 2022 is the expansion of the profit margin of sensor products.

In the first quarter of 2021, the company sold sensor products worth 100 yuan and could only earn a gross profit of 29.23 yuan, with a sales gross profit margin of 29.23%.

In the first quarter of 2022, the company also sold sensor products worth 100 yuan, but it could earn a gross profit of 30.47 yuan. The gross sales profit margin reached 30.47%, a year-on-year increase of 4%.

This company’s current sales gross profit margin, that is, its profit margin, ranks 47th among the 114 listed companies in the A-share Metaverse concept sector.

Through the above analysis, we understand that in 2022, due to the expansion of the profit margin of the company's sensor products, the company's performance in the first quarter will increase.

Disadvantages

We have seen so many advantages of this company above. Let's analyze the current problems and flaws of the company. The translator will give you a risk warning. By analyzing the main financial data,

found that the company's biggest problem at present is the extension of sales collection time.

The time for sales repayment is the accounting period for the company's sensor products sold, which is measured by the accounts receivable turnover days indicator.

In the first quarter of 2021, after the company sells sensor products, it only takes 100 days to receive payment. Now it takes 130 days, and the time for sales repayment has been extended by 30%.

The extension of sales payment collection time not only slows down the speed of payment back to the company, reduces its capital utilization efficiency, but also weakens the company's cash flow ability in the first quarter of this year.

Net cash flow is an indicator that measures the company's cash receipts and expenditures, and is also known as the touchstone of net profit.

In the first quarter of 2022, the company's net profit was 51.51 million yuan, while the actual net cash earned by the company due to operating activities during the same period was -130 million yuan, a year-on-year decrease of 6%.

This situation shows that although the company earned a net profit of more than 50 million yuan in the first quarter of this year, the payment for the goods has not yet been transferred to the company's account.

The company's net cash flow fell by 6% year-on-year, which shows that compared with the same period last year, the company's cash flow is not very abundant, and there is not a lot of cash in its account, which is also very detrimental to its production and operations. .

If the fundamentals of listed companies are divided into five levels from high to low: A, B, C, D, and E, the translator personally believes that the company can maintain the level of C-level .

And this company is Hanwei Technology Co., Ltd., stock code: 00007.

Please note: The stocks of companies with good fundamentals may not necessarily rise. But for stocks that can continue to rise sharply, the company's fundamentals must be excellent.

This article neither recommends the stock of Hanwei Technology, nor does it say how good Hanwei Technology is. Instead, it refines and translates the company's financial report.