\u3000\u3 Guocheng Mining Co.Ltd(000688) 083 Zwsoft Co.Ltd(Guangzhou)(688083) )
Event: on February 24, 2022, the company released the 2021 annual performance express.
The company's annual performance is in line with market expectations. According to the company's announcement, the company achieved an annual revenue of 619 million yuan in 2021, with a year-on-year increase of 35.64%; The net profit attributable to the parent company was 181 million yuan, a year-on-year increase of 50.67%; The net profit deducted from non parent company was 99 million yuan, with a year-on-year increase of 3.87%. Based on this calculation, the company's Q4 single quarter revenue was about 263 million yuan, with a year-on-year increase of 46.11%, and the overall growth rate recovered. The company is still in the stage of high R & D investment, and the overall performance is in line with market expectations.
Products continue to iterate and industrial integration continues to strengthen. According to Sinochem economic development center, the company has entered the list of the first batch of applicable technologies for intelligent manufacturing in the petroleum and chemical industry during the 14th five year plan in 2021. According to the disclosure of Southern Metropolis Daily, the company has led 11 major member units such as the Fifth Institute of electronics of the Ministry of industry and information technology to establish Guangdong Industrial Software Innovation Center to further strengthen collaborative innovation. On the other hand, Zhongwang simulation 2022 was officially released on December 23, 2021. The company has strengthened industrial coordination as a whole and continued to move forward on the "all in onecax" Avenue.
The importance of industrial software can not be ignored, and localization replacement is full of potential. According to the relevant data of the National Bureau of statistics, China's manufacturing output value surpassed the United States for the first time in 2010 and has ranked first in the world for many consecutive years. With the relevant policies such as made in China 2025, the upgrading of China's manufacturing industry has become an irreversible trend. Under the background of increasing investment in independent R & D in the manufacturing industry, the demand for industrial design software is expected to increase significantly. On the other hand, with trade uncertainty, in order to prevent the upgrading process of China's manufacturing industry from being blocked, the autonomy of industrial design software is one of the ways to effectively avoid the phenomenon of "neck sticking", and localization replacement is full of potential.
Investment suggestion: the company is a leading enterprise of industrial design software that is extremely scarce in China. The core product CAD design software is gradually opened up through market-oriented competition, and is expected to gradually become bigger and stronger by taking advantage of the east wind of localization. It is estimated that the company's EPS from 2021 to 2023 will be 2.95 yuan, 3.84 yuan and 5.14 yuan respectively, and the corresponding PE will be 87x, 67x and 50x respectively, maintaining the "recommended" rating.
Risk tip: the company's product R & D progress is less than expected, and the intensification of industry competition leads to the decline of gross profit margin
