Skyworth Digital: Western Securities, Harvest Fund and other 25 institutions investigated our company on January 17

On January 18, 2022, Skyworth Digital (000810) announced that Western Securities Xing Kaiyun, Harvest Fund Chen Liming, Ping An Pension Insurance Lan Yixiang, Guangzhou Financial Holdings Asset Huang Yong, Kaifeng Investment Chen Feng, Taikang Asset Merchant Yifeng Zhang Yaowei, ABC Huili Fund Han Lin, Yinhua Fund Hou Rui, Shanghai Minghe Jiang Yufan, Ivy Cheng Xiyun, Tianhong Fund Hu Dong, Cheng Huai Investment Wang Min, ICBC Credit Suisse Fund Marina, Jisheng Investment Liu Qinglin, Penghua Fund Cheng Qingyun, Huili Asset Zhang Yunchang, Qianti Investment Wang Zhou , Liu Shiqing of Minsheng Plus Bank Fund, Fengyan Investment In Jiang Yong, Li Ziyang of Mohua Fund, Zangyi of Sino-Italian Assets, Dong Yiping of Wanjia Fund Zhou Shi, Yang Jingyu of Shanghai Investment Morgan Fund, Huang Run of China Commercial Fund, and Zhang Shiqiang of Park Daoruifu investigated our company on January 17, 2022.

The main contents of this survey are:

Q: Regarding the implementation of broadband China's "double gigabit" broadband strategy, the 14th Five-Year Plan for the Development of the Digital Economy points out that to increase the number of gigabit broadband users, what is the company's layout on gigabit broadband?

A: The company began to lay out the broadband network connection equipment business in 2015, the company's current broadband network connection equipment products are mainly GPON + WiFi6 intelligent gateway, 10GPON + WiFi6 intelligent gateway, WiFi6 networking router, 4G/5GCPE, CM3.0, WiFi5, etc., and has been pre-researched FTTR, XGS-PON and other products. Based on the company's market share and advantages in the set-top boxes of the three major domestic communication operators, in the context of promoting the "double gigabit" in China, the company's gateways, routes and other products in the three major domestic communication operators are supplying and selling in batches, and the company is also doing the market for broadband access products of domestic radio and television network companies. Based on the advantages of the company's set-top box product market share and scale, the company is also developing intelligent terminal products that integrate "gateway + box + WiFi". Based on the accumulation of products, markets and industrialization capabilities, the company will further actively expand the market.

Q: Do unfavorable factors such as chip shortages have a significant adverse impact on the competitive position of the company?

A: At present, based on factors such as technology, product strength and the comprehensive strength of enterprises, the competition in the overall market is benign, and major terminal supply manufacturers will be affected by the supply of chips and other chips to varying degrees. Based on the long-term deep cultivation of smart box business and the advantages of scale and market share, Skyworth Digital Company has long-term good cooperation with upstream suppliers, and will take priority supply and guarantee strategies for the supply of upstream chips.

Skyworth Digital's main business: research, development, production, sales, operation and service of digital TV intelligent terminals and software systems and platforms

Skyworth Digital's 2021 third quarter report shows that the company's main revenue was 7.622 billion yuan, up 28.38% year-on-year; net profit attributable to the mother was 269 million yuan, down 4.3% year-on-year; deducting non-net profit of 121 million yuan, down 46.83% year-on-year; among them, in the third quarter of 2021, the company's single-quarter main revenue was 3.047 billion yuan, up 36.72% year-on-year; single-quarter net profit attributable to the mother -15.2675 million yuan, down 114.91% year-on-year Single-quarter deduction of non-net profit - 30.6772 million yuan, down 131.18% year-on-year; debt ratio of 58.43%, investment income of 94.5057 million yuan, financial expenses - 10.2641 million yuan, gross profit margin of 16.34%.

In the past 90 days, a total of 5 institutions have given ratings, 3 buy ratings and 2 overweight ratings; the target average price of institutions in the past 90 days is 11.39; the net inflow of financing in the past 3 months is 224 million, and the balance of financing has increased; and the net inflow of margin is 323,400, and the balance of margin has increased. According to the Securities Star Valuation Analysis Tool, Skyworth Digital (000810) has a good company rating of 2.5 stars, a good price rating of 3 stars, and a valuation comprehensive rating of 3 stars. (Rating Range: 1 ~ 5 stars, maximum 5 stars)