\u3000\u3 Guocheng Mining Co.Ltd(000688) 058 Beijing Baolande Software Corporation(688058) )
Founded in 2008, the company is mainly engaged in the R & D and sales of middleware software products in basic software, cloud management platform, application performance management software and other intelligent operation and maintenance products, and provides supporting professional technical services. Looking back on the development process of the company, it started by providing application server middleware for customers in the telecommunications industry. After more than 10 years of hard work and continuously enriching the product matrix, it has emerged in the fields of Party and government and finance, and has become one of the leading enterprises in the field of domestic middleware.
Since 20 years, the company's revenue has accelerated, with a year-on-year growth rate of 58% in 21 years. Middleware and technical services are the main revenue sources of the company, accounting for 94% in total in 20 years. The company started with cooperation with customers in the telecommunications industry. At present, it has expanded to the field of government and finance. The overall gross profit margin of the company is high, with a 20-year gross profit margin of 87.9%. The sales expense ratio of the company in the past 20 years has increased by 6pct compared with that in the past 19 years, laying the foundation for the continuous expansion of business.
The demand for domestic middleware is expected to continue to rise in the financial information and innovation field of the company's business card. In terms of policy, the pilot of financial it localization has entered the deep-water area and comprehensive promotion is imminent; Technically, the software and hardware facilities of the financial industry have been independently controllable. Therefore, we believe that financial Xinchuang is expected to accelerate its full roll out.
Beijing Baolande Software Corporation(688058) is the core customer group of middleware market. According to the data of China National Software And Service Company Limited(600536) Industry Association, the market demand contract of Middleware in government, finance and telecommunications industry in 2019 is 5 billion, accounting for 69% of the middleware market. These markets are the core industries of the innovation reform, and the pace of domestic replacement is expected to be faster than the average level of the middleware market. Therefore, we believe that Beijing Baolande Software Corporation(688058) is expected to achieve higher industrial growth in the neighborhood of finance, party and government.
The company is a leader in middleware in the telecommunications industry, benchmarking overseas leading manufacturers in software capabilities. With the accumulation of technology, China Mobile has realized the domestic substitution of its core business system in nearly 20 provinces and cities in China, and the product capability has been verified. At the same time, Beijing Baolande Software Corporation(688058) has successfully broken the circle of government and financial industry, and its market share is expected to continue to increase in the wave of information innovation.
Intelligent operation and maintenance can effectively improve operation and maintenance efficiency, and the demand for supporting operation and maintenance increases under the background of information innovation. The company arranged intelligent operation and maintenance business in advance to occupy the first mover advantage in the industry. The semi customization mode not only ensures the user experience, but also improves the cross industry reuse flexibility of products. There are dozens of standardized modules corresponding to different functions in intelligent operation and maintenance. After customers select functions on demand, the company makes customized development. While deeply cooperating with telecom enterprises, the company broadens customer coverage in the party and government, finance and other industries.
Profit forecast: we expect the operating revenue of the company from 2021 to 2023 to be 288 / 437 / 649 million yuan respectively, with a year-on-year increase of 58%, 52% and 49%; The gross profit margin is 85%, 84% and 83% respectively, and the net profit is RMB 95 / 150 / 230 million respectively, corresponding to 42.70/26.88/17.60 times of P / E. Considering that the company is in the stage of accelerated business expansion, we give the company 40 times PE in 2022, corresponding to the target price of 150.33 yuan. It is covered for the first time and given a "buy" rating.
Risk tips: macroeconomic and policy risks, rising human costs and changes in the competitive environment are subject to certain subjectivity.
