\u3000\u3 Guocheng Mining Co.Ltd(000688) 111 Beijing Kingsoft Office Software Inc(688111) )
Event:
The company issued the announcement of 2021 annual performance express after the closing on February 25, 2022.
Comments:
Operating income and net profit deducted from non parent company increased rapidly, and contract liabilities increased by more than 70% year-on-year
In 2021, the company continued to firmly promote the strategy of "multi screen, cloud, content, AI and cooperation", developed steadily with the concept of user first and technology, and achieved good business performance. The company achieved an operating 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%; The net profit deducted from non parent company was 841 million yuan, with a year-on-year increase of 37.47%. Based on the continuous enrichment of the company's products and services in the cloud and collaborative office scenario, the cloud collaborative office stickiness of individual and enterprise users continues to improve, and the cloud process in China's individual subscription and China's institutional subscription business is accelerated. At the end of the reporting period, the total contract liabilities of the company exceeded 1.6 billion yuan, a year-on-year increase of more than 70%.
The subscriber expansion of subscription business was good, and the institutional authorization business showed explosive growth
In terms of business: 1) personal subscription: with the continuous expansion of the user base of the personal user market, 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. The operating revenue of China's personal subscription business is about 1.465 billion yuan, a year-on-year increase of about 44%. 2) Institutional subscription: with the gradual deepening of the product cloud of government and enterprise users, the company's penetration in the government and enterprise market will be effectively improved. The operating revenue of China's institutional subscription and service business is about 446 million yuan, a year-on-year increase of about 23%. 3) Institutional authorization: with the deepening of the process of information innovation, the company's streaming software product orders are rich. The operating revenue of China's institutional authorization business is about 962 million yuan, a year-on-year increase of about 107%. 4) Internet advertising and other businesses: the company continued to maintain its strategic adjustment attitude. The operating revenue of Internet advertising and other businesses was about 406 million yuan, a year-on-year decrease of 3%.
Jinshan digital office platform has been released with great weight, fully enabling the digital transformation of large-scale organization office
On December 22, 2021, "2021 Jinshan digital office conference" was held in Beijing. At the conference, the company released a series of new products: Jinshan collaboration, a new generation of collaborative office platform based on document conversation and integrating various collaborative services; Enhanced form software specially designed for multi person collaboration scenario - light dimension table; A new generation of knowledge management tools - Jinshan knowledge base, etc. As a result, the company has formed a comprehensive organization and office capacity matrix, covering the whole life cycle of digital office, helping large organizations quickly complete the digitization of people, tools and processes in the organization, and realize unified security control.
Profit forecast and investment suggestions
The company is a leading office software and service provider in China. Driven by policies, domestic software has ushered in spring, and the company has a broad space for sustainable growth in the future. Referring to the announcement of 2021 annual performance express, the company adjusted the operating revenue forecast of the company from 2021 to 2023 to RMB 3.280, 4.552 and 6.066 billion, adjusted the net profit attributable to the parent company to RMB 1.042, 1.437 and 2.029 billion, and the EPS was RMB 2.26, 3.12 and 4.40/share, corresponding to 93.39, 67.74 and 47.96 times of PE. At present, the company's operating revenue is growing rapidly, there are more investment in R & D, market and other expenses, and the net profit margin is low. Therefore, the PS valuation method is more reasonable. Since listing, the company's PS has mainly operated between 30-100 times. With reference to the recent valuation level, the company's target PS in 2022 has been adjusted to 35 times, with the corresponding target price of 345.63 yuan, maintaining the "buy" rating.
Risk tips
The growth of paying users is lower than expected; The replacement process of localization is lower than expected; Other companies have entered the office software market, and the market competition has intensified.
