\u3000\u30 Chongqing Baiya Sanitary Products Co.Ltd(003006) 88 Dark Horse Technology Group Co.Ltd(300688) )
Event:
1) the company announced the financial report of 2021, realizing an operating revenue of 340 million yuan, a year-on-year increase of 107.87%; The net profit attributable to the parent company was 11.43 million yuan, a year-on-year increase of 55.90%; The net profit attributable to the parent company after deducting non profits was 6.81 million yuan, a year-on-year decrease of 52.66%;
2) it is proposed to distribute a cash dividend of 0.60 yuan (including tax) for every 10 shares and increase 5 shares for every 10 shares.
Comments:
The transformation of the company’s “business enterprise service and Enterprise Service SaaS” has achieved remarkable results, with a year-on-year increase of 108% in revenue in 21 years. In the past two years, the company’s business was in the period of transformation and adjustment. In the second half of 2021, the business strategy upgrading was completed, that is, the transformation from TOC founder training to tob enterprise service field and the upgrading of Enterprise Service SaaS were completed. The results after the transformation are remarkable, which have been reflected in the income side. The single quarter revenue of Q1-Q4 company increased significantly month on month. The single quarter revenue of 2021q1-q4 company was RMB 29 / 0.70/0.87/154 million respectively. On the profit side, in 2021, the gross profit margin of the company was 46.7% (- 13.6pct) and the net profit margin after deduction was 2.0% (- 6.8pct). Among them, the gross profit margin of traditional business enterprises accelerated (founder training) was the same as that of last year. The decline of the overall profit margin was mainly due to the increase of relevant costs brought by new business expansion, especially the cultivated intellectual property service business, which was in the first year of investment, In addition, the R & D investment of SaaS platform increased by 175.5% to RMB 33.37 million, but the orders and revenue of related businesses increased significantly. It is expected that the profit margin is expected to rise with the large-scale volume of business in the future.
The enterprise accelerated the steady development of the cornerstone business, and the enterprise service innovation business grew rapidly. At present, the company’s business is divided into two parts:
1) enterprise acceleration service: the revenue was 147 million yuan, a year-on-year increase of 43.9%, accounting for 43.4%. Enterprise acceleration service is a strategic management consulting service for the founders of the enterprise. It is the traditional basic business of the company since its establishment and brings stable and sustainable operating income to the company. By the end of the reporting period, the company had 8662 accelerated service customers, with a year-on-year increase of 31%; Contract orders at the end of the period were 67.56 million yuan, an increase of 16.62 million yuan over the same period last year;
2) enterprise services: the revenue was 182 million yuan, with a year-on-year increase of 259.3%, accounting for 53.42%. In 2021, the company focused on the comprehensive upgrading of enterprise service business and built a brand-new product matrix. On the basis of the original urban expansion and marketing services, the company added SaaS mode services, fiscal and tax services, intellectual property services and other businesses, and the new business revenue accounted for 34% of the total revenue. During the reporting period, the number of enterprise service customers of the company increased by 5843, a year-on-year increase of 3484%; The amount of new orders was 146 million yuan, a year-on-year increase of 96%.
The implementation of “Enterprise Service SaaS” business has accelerated the empowerment and specialization of special new enterprises, and also created the second growth curve for the company. The reason for the firm transformation of the company to “enterprise service and Enterprise Service SaaS” is that tob has large space and strong sustainable profitability, accompanied by the whole life cycle of small and medium-sized enterprises. The transformation of the company has achieved phased results. In the second half of 2021, new products were gradually launched, and the SaaS platform for enterprise intellectual property – dark horse Kechuang cloud was launched at the end of September, which promoted the significant growth of revenue in the fourth quarter. At the end of 2020, the company was seeking business transformation and upgrading. 2021 coincided with the policy outlet of “specializing in Texin + Beijing stock exchange”. The weather, place and people were in harmony. The company was able to quickly mobilize resources to serve the industrial development trend. The value of various resources previously accumulated (industrial resources, urban resources, etc.) has reached the release period. With the promotion of SaaS services, we expect the company’s performance to accelerate the release and be first reflected in the income side, The subsequent profit margin will show an upward trend.
Investment suggestion: at present, small and medium-sized start-ups have ushered in policy dividends. The company mainly focuses on the service business for small and medium-sized enterprises, and will also set sail with the rapid development of small and medium-sized enterprises. On the one hand, the company has been deeply engaged in training (enterprise acceleration) business for more than ten years. The development of training (enterprise acceleration) business is stable and sustainable, and the company is basically stable; On the other hand, the company’s business has been upgraded to the tob end enterprise service business and cut into the intellectual property service business. The huge customer group, good government cooperation and SaaS service system have brought natural advantages to the expansion of the company’s Kechuang intellectual property service business. We are firmly optimistic about the prospect of the company’s Kechuang intellectual property service business. We expect that the company’s revenue from 2022 to 2024 will be RMB 530 million, RMB 820 million and RMB 1.17 billion respectively, with outstanding growth; The net profit was 35 / 74 / 135 million yuan respectively. Through the valuation and aggregation of various businesses of the company through the segment valuation method, we finally give the company a target market value of about 4.8 billion yuan in 2022 and a corresponding target price of about 44 yuan. Give a “Buy-A” rating.
Risk tip: market competition intensifies, the impact of industry supervision and market management on the company’s business growth, and the expansion of new business is less than expected.
