\u3000\u30 Chongqing Baiya Sanitary Products Co.Ltd(003006) 74 Yusys Technologies Co.Ltd(300674) )
Event:
The company announced the 2021 annual performance express on February 28, 2022. The company’s operating revenue in 2021 was 3.73 billion yuan, a year-on-year increase of 25.0%; The net profit attributable to the parent company was 390 million yuan, a year-on-year decrease of 12.8%; Net profit deducted from non parent company was 360 million yuan, with a year-on-year increase of 22.2%. If the share based payment fee is considered to be added back, the non net profit deducted by the company is 470 million yuan, with a year-on-year increase of 22.2%.
In the fourth quarter of 2021, the company’s operating revenue was 1.67 billion yuan, a year-on-year increase of 23.0%; The net profit attributable to the parent company was 240 million yuan, a year-on-year decrease of 24.3%; The net profit attributable to the parent company after deduction was 230 million yuan, a year-on-year increase of 34.4%. If the share based payment fee is considered to be added back, the net profit attributable to the parent company after deducting non-profit is 250 million yuan, with a year-on-year increase of 19.2%.
Comments:
In terms of business, 1) software development and services increased by 28.16% in 2021, mainly due to the relevant business needs of large state-owned banks. The company launched the self-developed version of credit V5 in 2021. The credit business has formed a product line of the whole credit life cycle from pre loan, in loan to post loan. The number of new contract orders doubled throughout the year, and the number of tens of millions of orders surged, which laid a solid foundation for the sustained and stable growth of the credit business in the future. For Q4 alone, the growth rate of software development and service business decreased slightly compared with the first three quarters. We believe that it is mainly due to the relatively high Q4 base in 2020 and the seasonality of the company’s refined management income. 2) The innovative operation business continued to maintain a rapid development momentum, with a year-on-year increase of 46.5%.
On the profit side, the company’s comprehensive gross profit margin decreased slightly, mainly due to the fierce talent competition caused by the high prosperity of the industry, the rise of labor costs and other factors, resulting in a slight decline in the gross profit margin of software business. Recently, as the demand for personnel slows down, the competition for talents is expected to stabilize; In the long term, with the continuous optimization of the company’s income structure and the rapid expansion of innovative operations and other businesses with high gross profit margin, the company’s operation quality is expected to be improved. In 2021, the company’s refined management and digital management upgrading will reduce the management expenses accordingly, and the scale effect will also reduce the sales expense rate; At the same time, the company continued to increase R & D investment and improve the degree of product standardization, making the company’s R & D investment increase by 38.83% over the previous year, exceeding the growth rate of revenue in the same period. We believe that with the improvement of business quality and product standardization and the slowdown of personnel competition pressure, the income profit scissors gap is expected to expand in 2022.
We believe that the company may still maintain high R & D investment in 2022, adjust the company’s revenue forecast from RMB 3762 / 4696 / 5769 million to RMB 3726 / 4645 / 5698 million from 2021 to 2023, and reduce the net profit from 4.19/6.34/8.45 to RMB 395 / 568 million. At present, the corresponding PE share price is 39.88/27.71/21.34 times, maintaining the “buy” rating.
Risk tips: 1) repeated outbreaks have resulted in the implementation of landing and overseas expansion less than expected; 2) Market competition intensifies risks; 3) Regulatory policy risk; 4) The performance express is the preliminary calculation result, and the specific financial data shall be subject to the annual report disclosed by the company
