\u3000\u30 Chongqing Baiya Sanitary Products Co.Ltd(003006) 87 Guangzhou Sie Consulting Co.Ltd(300687) )
Event: on February 28, 2022, the company released the 2021 annual performance express, realizing a total operating revenue of 1.934 billion yuan, a year-on-year increase of 39.57%; The net profit attributable to the shareholders of the listed company was 228 million yuan, with a year-on-year increase of 29.69%, which was in line with the scope of early performance forecast.
The rapid growth of income is expected to fully benefit from the general trend of upgrading China's manufacturing industry. 1) During the reporting period, the company achieved an operating revenue of 1.934 billion yuan, a year-on-year increase of 39.57%, exceeding market expectations; The net profit attributable to the parent company was 228 million yuan, with a year-on-year increase of 29.69%, which was mainly due to the company's continuous improvement in the product ability of industrial software and digital middle platform; At the same time, the company continued to implement the strategy of regional expansion and market leadership, further strengthened the in-depth cooperation with ecological partners, continuously connected external resources, enhanced customer stickiness, optimized the income of each business segment, and maintained good growth of the company's main business. 2) According to the 2021 semi annual report, on the basis of good business development in 2020, the company will further increase the sales revenue of self-developed software and strive to double the growth on the basis of 2020. By the end of 2020, the company had signed more than 1.8 billion new orders, a year-on-year increase of 55%, served more than 600 customers, maintained an upward trend in business development momentum, and the sustainability of subsequent performance can be expected.
The penetration rate of industrial Internet applications is expected to increase significantly, and the increase in the proportion of software drives profitability. 1) On January 12, 2022, the State Council issued a notice on the 14th five year plan for digital economy development. It is disclosed in the plan that in 2020, the added value of China's core industries of digital economy will account for 7.8% of China's gross domestic product (GDP). By 2025, the digital economy will move towards a period of comprehensive expansion, and the added value of core industries of digital economy will account for 10% of GDP. Among them, the application penetration rate of industrial Internet platform is planned to increase from 14.7% to 45%, and the penetration rate will increase significantly. 2) The revenue growth of the company's intelligent manufacturing and industrial Internet of things business is expected to exceed the overall average, and the proportion of revenue will further increase, becoming the main contribution to revenue growth. The s-mom manufacturing and operation kit provided by the company for the market has formed a business model of "standard platform + industry Kit + configured service" on the basis of open platform. Historically, the company has focused on customer expansion in high-profile industries, and has continued to cultivate in PCB semiconductor, Pan home, communication electronics and related parts and components industries. At present, large head manufacturing enterprises usually have the nature of multiple locations and multiple factories. The first project usually starts with a single factory and replicates with multi factory promotion. Therefore, standardized products such as s-mom are expected to accelerate the promotion and drive the continuous growth of the business.
As Huawei's top strategic partner, jointly promote intelligent manufacturing cloud products. 1) In 2019, the company won the honor of Huawei's top strategic partner. Saiyi's independent solutions have been selected into Huawei's strict selection mall, and SMOM system will enter Kunpeng ecology to accelerate the promotion of enterprise private cloud solutions. It also deeply participated in the certification Research Institute, selected China's excellent digital technology and software companies and delivered them to relevant enterprises. Huawei is the company's largest customer. Meanwhile, the company's customer structure continues to be optimized, and the proportion of Huawei's revenue gradually decreases. 2) Based on the advantageous industry cooperation experience in the field of intelligent manufacturing, with the improvement of product standardization and software, the intelligent manufacturing scheme is expected to expand rapidly and deeply into subdivided industries. In addition, it is expected to benefit from the support of Huawei cloud on the technology and channel side.
Maintain the "buy" rating. According to the key assumptions and recent announcements, the profit forecast is adjusted. It is estimated that the operating revenue from 2021 to 2023 will be 1.934 billion yuan, 2.642 billion yuan and 3.582 billion yuan respectively (1.958 billion yuan, 2.679 billion yuan and 3.638 billion yuan respectively in the early stage), and the net profit attributable to the parent company will be 228 million yuan, 302 million yuan and 409 million yuan respectively (229 million yuan, 304 million yuan and 415 million yuan respectively in the early stage). Maintain the "buy" rating.
Risk warning: new business promotion fails to meet expectations; Trade friction risk; Enterprise IT investment did not meet expectations.
