\u3000\u3 Guocheng Mining Co.Ltd(000688) 369 Beijing Seeyon Internet Software Corp(688369) )
Major events
The company released the performance express of 2021, and achieved a revenue of 1.031 billion yuan in the whole year, with a year-on-year increase of 35.11%; The net profit attributable to the parent company was 128 million yuan, a year-on-year increase of 18.50%; The net profit attributable to the parent company after deduction was 120 million yuan, with a year-on-year increase of 35.44%. In 2021q4, the company achieved a revenue of 479 million yuan, a year-on-year increase of 28.72%, and the net profit attributable to the parent company was 61 million yuan, a year-on-year increase of 20.81%.
Key investment points
R & D and sales increased by 35.1% year-on-year in 2021
In 2021, the company’s revenue increased by 35.11% year-on-year. The main reasons are: (1) changes in industry demand: with the accelerated development of digital economy, the “14th five year plan” has brought great opportunities for digital transformation and digital government construction, the market has developed rapidly and the demand for products has increased; (2) Improvement of product competitiveness: the company increased its R & D investment. During the reporting period, the R & D investment increased by more than 50% year-on-year, the product performance was greatly improved, the ability of Xinchuang products was further strengthened, the needs of customers were met through the product platform and low code ability, and the growth of the company’s operating revenue was promoted; (3) Increase marketing investment: expand the layout of marketing network, increase the investment of marketing resources, optimize the business model, achieve sales growth, and make the company’s performance grow steadily.
The business of Xinchuang was accelerated, and the sustained high growth during the “14th five year plan” period can be expected
Since 2021, the “14th five year plan” has been issued one after another, and Xinchuang may enter a comprehensive replacement stage.
(1) party and government information creation: sinking into districts and counties, intranet application and mobility, district and county electronic document information creation and unified data exchange will become new opportunities. (2) Industry information innovation: information innovation in finance, telecommunications and other industries will usher in sustainable development. More than 3000 information innovation institutions are expected to complete the construction and pilot of information innovation in 2022.
The company’s core backbone has 10 years of + trust innovation experience. V5 and V8 continue to complete the upgrading of trust innovation system. At present, more than 180 trust innovation products have been mutually recognized and adapted. Based on the ability of information and innovation, the company has created industry plans and led industrial development through application. Pilot projects have been carried out in many projects such as energy, finance, military industry and education. It will get greater development in 2022.
Profit forecast and valuation
The performance in 2021 is in line with expectations, with increased investment in products and sales, accelerated promotion of Xinchuang business, and sustained high growth. It is estimated that the net profit attributable to the parent company from 2022 to 2023 will be RMB 200 million and RMB 276 million respectively; The corresponding EPS is 2.60 and 3.58 yuan, maintaining the “buy” rating.
Risk tips
The macro-economy affects the downstream expenditure, the industry competition intensifies, and the expansion of emerging businesses is less than expected.
