\u3000\u3000 Zwsoft Co.Ltd(Guangzhou)(688083) (688083)
Event:
The company issued the 2021 annual performance forecast after the closing on January 27, 2022.
Comments:
The key account strategy has achieved remarkable results, and the operating revenue is expected to increase by 32.65% – 37.03% year-on-year
In 2021, the company is expected to achieve an operating revenue of 605-625 million yuan, with a year-on-year increase of 32.65% – 37.03%. The main reasons include: 1) the company’s strategy of continuously cultivating key customers in the industry in China and overseas commercial markets has achieved remarkable results and achieved steady growth in revenue; 2) The company’s business layout in China’s education market responds to the policy orientation, and from the perspective of customers, iterates from product R & D plan to sales plan, which is more in line with the development direction of the education industry; 3) The company has strengthened customer service and carried out multi-dimensional in-depth service, which has been widely recognized by colleges and universities at all levels, and its performance has increased rapidly. From the product side, the company has established a complete set of CAD technology system with completely independent intellectual property rights. 3dcad products have a rare self-developed geometric modeling core in China. CAE products have also entered the preliminary commercial stage and are expected to become a new growth pole.
We will continue to increase investment in various expenses, and the net profit attributable to the parent company is expected to increase by 46.20% – 54.51% year-on-year
In 2021, the company expects to realize a net profit attributable to the parent company of 176-186 million yuan, with a year-on-year increase of 46.20% – 54.51%; It is expected to realize a net profit of 93-103 million yuan, a year-on-year decrease of 2.55% to an increase of 7.93%. The main reasons affecting the net profit include: 1) in order to meet the needs of continuous innovation and sustainable business development, the company actively introduces excellent talents, continuously strengthens R & D investment, and carries out marketing activities in multiple directions. The management expenses, sales expenses and R & D expenses have increased significantly compared with the same period of last year; 2) In order to retain key employees, the company implemented the equity incentive plan in 2021 and confirmed the share based payment of about 8 million yuan. We believe that although the amortization of incentive expenses will have a certain impact on the company’s net profit in the next few years, the equity incentive plan is expected to effectively improve the cohesion of the company’s employees and the stability and enthusiasm of the team.
Zhongwang simulation 2022 was officially released to build a solid foundation for “tackling key problems of domestic CAE technology”
Under the current trend of digital transformation, CAE technology plays an important role in digital twin and Internet of things, and is one of the key cores to help enterprises realize digital upgrading. According to the company’s official website, in December 2021, the company officially released a new version of simulation solution – Zhongwang simulation 2022, including Zhongwang electromagnetic simulation, Zhongwang structural simulation and zwmeshworks. This is the latest breakthrough research and development achievement of the company based on the independent geometric modeling core, mesh generation, solver and other underlying core technology fields on the basis of in-depth insight into multi industry simulation application scenarios, which demonstrates the company’s determination to spare no effort to tackle the core technology of CAE and continue to build independent, reliable and high-quality multi-disciplinary and multi physical field simulation solutions.
Profit forecast and investment suggestions
The company is committed to becoming a world-class industrial software supplier comparable to Dassault and contributing to the world’s industrial progress. Driven by policies, the company is expected to maintain a rapid growth trend and fully benefit from the high prosperity of the industry. Referring to the annual performance forecast for 2021, the company adjusted its operating income forecast from 2021 to 2023 to RMB 615, 848 and 1.160 billion, adjusted its net profit attributable to the parent company to RMB 181, 226 and 303 million, and EPS to RMB 292, 364 and 4.88 per share, corresponding to 96.54, 77.36 and 57.71 times of PE. At present, the company is in a period of rapid growth. Since its listing, the company’s PSTTM has mainly operated between 30-80 times, giving the company 30 times the target PS in 2022, with the corresponding target price of 410.66 yuan. Maintain the “buy” rating.
Risk tips
The product is relatively single; The strength of industrial policy support decreased; Technology R & D risk; Market competition intensifies.
