is a company that is running on the digital renminbi and Hongmeng tracks at the same time. Currently, the company has participated in the digital renminbi pilot business of state-owned banks.
Moreover, the company also joined the Open Atom Open Source Fund as a gold medal donor, playing an important role in the construction of the open source Hongmeng ecosystem.
With its strong competitiveness, the company has attracted strategic shareholdings from national pension funds, which are the ninth largest circulating shareholder of this company.
At present, the company's historical performance has achieved growth for two consecutive years, and in 2021 it hit a record high with a net profit of 154 million yuan.
The company's stock has retraced significantly by 56% in 67 trading days, and the stock price has been cut off.
(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 young voice and a pretty good attitude.
During the conversation, the translator learned that the company is the leader in application solutions for the domestic mobile intelligence industry.
This company’s revenue from smart terminal equipment accounts for 98%, and revenue from software development and services accounts for 2%.
In the company’s financial report, the translator learned that the company has currently reserved technologies such as trusted identity authentication, trusted device authentication, and trusted QR codes, all of which can be applied in the field of digital renminbi.
The translator also learned from the Dong Secretary’s mouth that as early as 2020, the company had participated in the update and upgrade of merchants’ smart POS software and hardware to participate in the application of Shenzhen’s digital renminbi pilot.
Let’s take a look at the dividends of this company. The company has distributed a total of 63.33 million yuan in cash since its listing.
has paid dividends to shareholders in the past five years. The average proportion of dividends to net profit is about 10%, which shows that the company is still very responsible to shareholders.
The above is an introduction to the basic situation of the company. Next, let's analyze the company's performance.
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 43.24 million yuan. By the first quarter of 2022, the company's performance dropped to 28.91 million yuan, a year-on-year decrease of 33%.
The decline in performance should be regarded as a shortcoming, but there are still many things to note in the company's financial data.
Although the company's performance fell by 33% in the first quarter of this year, the company's net profit still ranked 14th among the 56 listed companies in the A-share digital currency concept sector. This ranking is not low, indicating its large scale.
The biggest highlight of the company is that among companies in the digital currency sector and its size, this company has the best profitability.
To measure the ability to make money, the return on equity indicator is used, which is the ratio of net profit to shareholder equity.
In the first quarter of 2022, the company’s return on equity was 1.7%. This shows that if the management uses 100 yuan of shareholders' money to produce and operate smart equipment, it can earn a net profit of 1.7 yuan after three months.
And this earning power ranks 7th among the 56 listed companies in the A-share digital currency concept sector.
In addition to its large scale and strong profitability, this company also has a very low price-to-earnings ratio.
The price-to-earnings ratio is the most effective indicator to measure the valuation of a listed company. It is the ratio of the stock price to earnings per share.
In the first quarter of 2022, the company’s price-to-earnings ratio was only 39 times. This shows that if the management distributes all the money earned through smart devices to shareholders every year, if you buy 10,000 yuan of company stock, you will earn 10,000 yuan in dividends 39 years later.
This price-to-earnings ratio ranks 7th among the 56 listed companies in the A-share digital currency concept sector. The high ranking indicates that the company is not currently overvalued.
Through the above analysis, we understand that in the first quarter of 2022, this company is not small in scale, has stronger ability to make money, and it is currently undervalued.
Reasons for the decline in performance
Let’s analyze the reasons for the decline in net profit of this company in the first quarter of this year.
By using DuPont theory analysis, the translator found that the reason for the company's decline in performance was the decline in the profit margin of smart devices.
In the first quarter of 2021, the company sold a smart device worth 100 yuan and earned a gross profit of 32.29 yuan, with a sales gross profit margin of 32.29%.
In the first quarter of 2022, the company also sold smart devices worth 100 yuan, but could only earn a gross profit of 29.17 yuan. The gross sales profit margin dropped to 29.17%, down 10% year-on-year.
The company’s profit margin, that is, gross sales profit margin, ranks 33rd among the 56 listed companies in the A-share digital currency concept sector. This ranking is at the lower middle level of the sector, which shows that its profit margin is not very high.
Through the above analysis, we understand that in 2022, due to the decline in profit margins of this company's products, the company's performance in the first quarter will decline.
Advantages
After analyzing the shortcomings of the company, let's take a look at the company's advantages.
Through analysis, the translator found that the company's short-term solvency improved in the first quarter of this year.
The current ratio is the most effective indicator to measure the short-term solvency of a listed company. It is the ratio of current assets to short-term liabilities .
In the first quarter of 2021, the company's current ratio was 2.82. This means that as long as the company has short-term liabilities of 100 yuan, it has 282 yuan of current assets as protection.
By the first quarter of 2022, the company's current ratio reached 3.06, a year-on-year increase of 9%.
The reasonable value of the current ratio is 2, so the company's short-term solvency is very strong, which will not only enhance its future cash flow capabilities, but is also very beneficial 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 Youboxun Co., Ltd., stock code: 00531.
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 does not recommend the stock of Uboxun, nor does it say how good Uboxun is. Instead, it refines and translates the company's financial report.
