\u3000\u3 Shengda Resources Co.Ltd(000603) 613 Beijing United Information Technology Co.Ltd(603613) )
Event: Beijing United Information Technology Co.Ltd(603613) released the operation announcement from January to February 2022. The company achieved sales revenue of about 7.1 billion yuan from January to February, with a year-on-year increase of more than 95%; The net profit attributable to the parent company was about 91 million yuan, an increase of more than 90% over the same period in 2021. In 2021, the company achieved revenue of 37.348 billion yuan, a year-on-year increase of 117.7%; The net profit attributable to the parent company was 574 million yuan, a year-on-year increase of 88.6%. The company’s operating performance has continued to maintain a good development trend since the beginning of 2022.
Horizontal and vertical joint extension and consolidation of industry leading position. It has been proved that the horizontal replication of multiple business models has been realized through the practice of multiple companies, and the vertical replication of multiple categories has been realized; At the same time, it extends vertically along both ends of the single product industrial chain and goes deep into the titanium industrial chain. Taking Tu Duoduo platform titanium dioxide as an example, it has been extended vertically along the supply chain to the whole industrial chain of titanium middling, titanium concentrate, high titanium slag, rutile, titanium tetrachloride, titanium dioxide, sponge titanium and titanium materials; Horizontally, it has expanded from single products to large categories such as titanium industry chain, alcohol industry chain, resin industry chain, gravel and medical raw materials; Horizontal and vertical expansion helps to improve the competitive advantage of individual categories. At present, the industrial products market is large, but the penetration rate of e-commerce is still low. The company is expected to fully enjoy the development dividend and maintain strong growth potential.
Focusing on the core business model, the second growth pole of performance has a promising prospect. 1) At the end of the trading supply chain, the company actively promoted the construction of Duoduo e-commerce platform, and promoted the growth of the company’s business performance in a two-way way way of “horizontal category expansion + vertical depth extension”; 2) In terms of cloud factory, by promoting the digital transformation of all links of upstream enterprises, the company helps enterprises release production capacity and improve efficiency, actively expand the scope of application, cultivate customer stickiness, and gradually build an industrial ecological circle. In 2021, 20 cloud factories have been signed. In 2022, the company plans to sign 30-40 new cloud factories and implement 10-15 new digital factories; Digital factories in the same industrial chain, supply chain and value chain are expected to gradually form a second growth pole.
Profit forecast and investment suggestions. According to the disclosure of the company’s annual performance express in 2021, the net profit attributable to the parent company from 2021 to 2023 is expected to be 570 million yuan, 920 million yuan and 1.46 billion yuan respectively, with an annual compound growth rate of 69%, corresponding to 65 times, 41 times and 26 times of PE respectively. Considering that the e-commerce market of industrial products is broad and the penetration rate still has great room for improvement, the company is China’s leading industrial B2B e-commerce platform and a leading industrial Internet enterprise, with multi category competitive advantages and high growth. To sum up, we maintain the “buy” rating and recommend active attention.
Risk tip: industry policy risk, risk of intensified market competition, risk of customer transformation less than expected, risk of strategic promotion less than expected.
