\u3000\u3 Guocheng Mining Co.Ltd(000688) 111 Beijing Kingsoft Office Software Inc(688111) )
The overall performance is in line with market expectations, increasing investment and opening up space for the future
The company released the performance express for 2021. In 2021, the company achieved an operating revenue of 3.28 billion yuan, an increase of 45.07% year-on-year. Q4 achieved a revenue of 908 million yuan in a single quarter, an increase of 19.8% year-on-year. The overall revenue level was in line with market expectations. In 2021, the net profit attributable to the parent company was 1.042 billion yuan, with a year-on-year increase of 18.68%, and the non net profit attributable to the parent company was 841 million yuan, with a year-on-year increase of 37.47%. Due to the increased investment in products and other aspects in 2021, the annual profit margin decreased slightly. During this period, the company strengthened the exploration in the field of collaborative office, launched Jinshan digital office platform, and further opened the growth space in the future.
The revenue of personal subscription business is growing rapidly, the performance of contract liabilities is bright, and the expected cash flow is expected to exceed the expectation
In 2021, China's personal subscription business achieved an operating revenue of about 1.465 billion yuan, a year-on-year increase of about 44%, higher than the year-on-year growth rate of 38% in 2021h1. Among them, the subscription revenue of 2021h2 was 730 million yuan, down 0.7% compared with H1, and the subscription revenue of Q4 in a single quarter was 341 million yuan, down about 12.4% compared with Q3. Contract liabilities maintained a high growth rate throughout the year. At the end of 2021, the total contract liabilities exceeded 1.6 billion yuan, with a year-on-year increase of more than 70%. It can be seen from the high increase in contract liabilities that the cash flow from operating activities of the company in 2021 is expected to exceed market expectations, and laid the foundation for high growth of revenue in the coming year.
Xinchuang's business continues to be large-scale, and 2b subscription business caliber is disclosed for the first time
In 2021, China's institutional authorization business realized an operating revenue of about 962 million yuan, a year-on-year increase of about 107%. It was disclosed for the first time that China's institutional subscription and service business realized an operating revenue of about 446 million yuan, a year-on-year increase of about 23%. We believe that the accelerated release of China Xinchuang orders from 2020 to 2021 has contributed to the rapid and large-scale authorized business of the company's Chinese institutions. In the future, with the support of industry Xinchuang and township and county Xinchuang, Xinchuang will still provide growth guarantee for this business. The introduction of the new business model of SAB on the subscription side and the service side in China is expected to accelerate the development of SAB on the subscription side for the first time by the end of 2021.
Investment suggestion: with the continuous promotion of Xinchuang and the rapid growth of C-end, the company is expected to maintain high growth, and new products are expected to expand business boundaries and bring performance increment. Due to the repeated impact of the epidemic, the operating pressure of small and medium-sized enterprise customers has increased. At the level of major customers, the information and innovation industry in finance and other industries has not yet formed a large-scale digital demand. Based on the express report in 2021, the company's revenue forecast for 20212023 is adjusted from 3.505/48.01/6.482 billion yuan to 3.280/44.28/5.978 billion yuan, Adjusted the net profit forecast from 1.293/17.87/2.441 billion yuan to 1.042/14.27/1.958 billion yuan, maintaining the "buy" rating.
Risk tip: the order of Xinchuang is less than expected, the promotion of C-end subscription is less than expected, the pressure on small and medium-sized enterprises is increased, the performance express is the preliminary calculation result, and the specific financial data shall be subject to the annual report disclosed by the company
