\u3000\u3 Guocheng Mining Co.Ltd(000688) 111 Beijing Kingsoft Office Software Inc(688111) )
Core view
Event: on February 25, Beijing Kingsoft Office Software Inc(688111) released the performance express of 2021. In 2021, the company achieved a revenue of 3.28 billion yuan, a year-on-year increase of 45.07%; The net profit attributable to the parent company was 1.042 billion yuan, a year-on-year increase of 18.68%, and the deduction of non net profit was 841 million yuan, a year-on-year increase of 37.47%.
Personal subscription business and institutional authorization business drive revenue growth. The company achieved an annual operating revenue of 3.28 billion yuan, with a year-on-year increase of 45.07%. The reason for the change is that the user base of personal subscription business continues to expand and the structure is improved, the revenue maintains high growth, and the institutional authorization business shows explosive growth due to the release of user demand. The net profit deducted from non parent company was 841 million yuan, with a year-on-year increase of 37.47%, which was mainly due to the increase of net profit caused by the growth of operating income. In addition, the non recurring profit and loss in the same period of last year was mainly financial management income, government subsidy income and investment income from the acquisition of digital science and technology network. The non recurring profit and loss in the current period was mainly financial management income and government subsidy income, which reduced the non recurring profit and loss in the current period.
The stickiness of user cloud collaborative office continued to improve, and the cloud process of subscription business accelerated. By the end of 2021, the total contractual liabilities of the company had exceeded 1.6 billion yuan, a year-on-year increase of more than 70%. In terms of personal subscription business, with the expansion of the user base, the company promotes the long-term transformation of users by enriching product functions, optimizing service quality and improving the free storage space of personal cloud documents, driving the sustained and rapid growth of personal subscription business. In 2021, China's personal subscription business achieved an operating revenue of about 1.465 billion yuan, a year-on-year increase of about 44%. In terms of institutional subscription business, with the deepening of the product cloud of government and enterprise users, the company continues to promote the transformation of government and enterprise users from traditional independent office to cloud and collaborative office by broadening ecological channels, improving product system and improving service experience, which is conducive to the promotion of subsequent digital office platform solutions. In 2021, China's institutional subscription and service business realized an operating revenue of about 446 million yuan, a year-on-year increase of about 23%.
The demand of government and enterprise users has increased, and the institutional authorization business has maintained rapid growth. With the maturity and quality improvement of the overall products of the information innovation industry, the information innovation process continues to deepen, the demand of government and enterprise users increases significantly, and the orders of the company's streaming software products are rich, which promotes the explosive growth of China's institutional licensing business. In 2021, the authorized business of Chinese institutions achieved an operating revenue of about 962 million yuan, a year-on-year increase of about 107%. In terms of Internet advertising business, the company continued to maintain a strategic adjustment attitude, and the proportion of this part of revenue continued to shrink steadily. In 2021, Internet advertising and other businesses realized an operating revenue of about 406 million yuan, a year-on-year decrease of 3%.
Investment suggestion: according to the company's performance express data in 2021, we adjusted the performance forecast in 2021. It is predicted that the company's operating revenue from 2021 to 2023 will be 3.280 billion yuan, 4.559 billion yuan and 6.155 billion yuan respectively, the net profit attributable to the parent company will be 1.042 billion yuan, 1.484 billion yuan and 2.038 billion yuan respectively, and the EPS will be 226, 3.22 and 4.42 yuan respectively. Maintain the "buy" rating.
Risk tip: the cloud process is not as expected; User growth is less than expected; Macroeconomic downturn.
