\u3000\u3 Guocheng Mining Co.Ltd(000688) 369 Beijing Seeyon Internet Software Corp(688369) )
Event:
The company issued the 2021 annual performance express. The announcement said that in 2021, the company achieved an operating revenue of 1.031 billion yuan, a year-on-year increase of 35.11%, in line with expectations; The revenue in 2021 increased by 47.36% compared with that in 2019, reaching the assessment target of the first grant period of equity incentive.
During the reporting period, the net profit attributable to the parent company was 128 million yuan, with a year-on-year increase of 18.5%; The net profit attributable to the parent company after deduction was 120 million yuan, with a year-on-year increase of 35.44%, and the net interest rate attributable to the parent company after deduction was 11.63%, which was basically the same as that in the same period last year, mainly because the company managed idle funds through bank time deposits and call deposits, and the deposit interest increased.
In the fourth quarter of 2021, the company achieved an operating revenue of 479 million yuan, a year-on-year increase of 28.72%; The net profit attributable to the parent company was 61 million yuan, a year-on-year increase of 20.8%; The net profit attributable to the parent company after deduction was 56 million yuan, a year-on-year increase of 19.88%.
Comments:
The revenue of all business segments of the company has increased, especially the Xinchuang business segment has maintained rapid growth. Externally, the “14th five year plan” has brought great opportunities for digital transformation and the construction of digital government, and the market demand has increased. Internally, the company actively seizes market opportunities, increases marketing investment and improves product performance; The accumulation of 8 years of experience in credit creation also makes the company have relevant technical advantages and customer base. At present, the company has realized mutual recognition with more than 180 credit creation products.
On the marketing side, the company increases marketing investment, expands marketing network layout, and strengthens customer value marketing and layered operation. At the beginning of 2021, the company released honeycomb plan 3.0 and launched an ecological fund of 200 million yuan. It is expected to introduce 100 Urban franchise partners, 100 product and solution partners and 30 industry franchise partners in the future.
On the R & D side, the company’s R & D investment increased by more than 50% year-on-year in 2021, mainly because the company firmly implemented the “cloud transformation” strategy and continued to increase investment in the R & D of the new generation collaborative management technology platform V8, so as to meet the digital transformation needs of super large organizations and support the business model of SaaS subscription of small and medium-sized organizations. At present, V8 has completed the acceptance of the first phase verification requirements of prototype customers and is expected to be released in the spring of 2022.
Based on the performance forecast of the 2021 annual report released by the company, we believe that the company is currently in the investment period, so we reduce the previous profit forecast. The revenue forecast from 2021 to 2023 will be reduced from 10.38/14.12/19.49 to 10.31/13.721783 billion yuan, and the net profit forecast from 2021 to 2023 will be reduced from 138 / 178 / 244 million yuan to 128 / 161 / 213 million yuan, corresponding to 37.82/29.89/22.64 times PE. Considering that the company’s current price corresponding to PE in 2022 has been in a historically low range, we raised the rating from “overweight” to “buy”.
Risk tips: 1) the financial data of the performance express is the preliminary accounting data, which has not been audited. The specific data shall be subject to the data disclosed in the 2021 annual report; 2) The launch progress of new products is less than expected; 3) Intensified market competition
