\u3000\u3 Guocheng Mining Co.Ltd(000688) 111 Beijing Kingsoft Office Software Inc(688111) )
Event: the company released its 2021 annual report. In 2021, it realized an operating revenue of 3.28 billion yuan, a year-on-year increase of 45.07%; The net profit attributable to the parent company was 1.041 billion yuan, a year-on-year increase of 18.57%; The net profit attributable to the parent company after deduction was 840 million yuan, a year-on-year increase of 37.23%.
China’s authorized business grew rapidly and the rate of R & D expenses increased. In terms of business, China’s personal office service subscription business revenue was 1.465 billion yuan, a year-on-year increase of 44.20%; China’s institutional subscription and service revenue was 446 million yuan, a year-on-year increase of 23.40%; The authorized business income of Chinese institutions was 962 million yuan, a year-on-year increase of 107.10%; Internet advertising and other business income was 4.06 yuan, a year-on-year decrease of 3.01%. The gross profit margin and sales expense rate remained basically stable, and the R & D expense rate increased by 1.44 percentage points compared with last year.
Monthly active users maintained high growth year-on-year. By the end of 2021, the monthly active users (MAU) of the company’s main products were 544 million, with a year-on-year increase of 14.05%. Among them, wpsofficepc has 219 million monthly active users, with a year-on-year increase of 15.87%; The monthly number of active mobile devices was 311 million, an increase of 13.83% over the same period last year; The number of monthly active equipment of other products of the company, such as Kingsoft Ciba, is close to 5 million.
The goal of collaborative transformation is clear. Among the company’s products, Jinshan document continuously strengthens its product and operation capabilities and expands to individuals and organizations. At the product level, continue to optimize multi-end experience, upgrade component capabilities such as online document forms, expand vertical application scenarios, and promote the continuous iteration and evolution of Jinshan document products. The rice husk business has further improved the commercial payment model and added a commercial authorized sale method of poster resources for individuals and enterprises,
Investment suggestion: the company is a leading enterprise in China’s office software, enjoying the industry’s rapid growth dividend under the trend of cloud office. It is estimated that the company’s EPS from 2022 to 2024 will be 3.15 yuan, 4.00 yuan and 5.24 yuan respectively, maintaining the “buy” rating.
Risk tip: the growth of paying users is less than expected; Industry competition intensifies.
