\u3000\u3 Guocheng Mining Co.Ltd(000688) 111 Beijing Kingsoft Office Software Inc(688111) )
The long-term growth path is clear and the “buy” rating is maintained
Considering the certain volatility of the company’s credit creation business, we maintain the company’s net profit attributable to the parent company in 2022 at 1.324 billion yuan, raise the forecast for 2023 to 1.77 billion yuan (the original forecast was 1.699 billion yuan), and increase the forecast for 2024 to 2.296 billion yuan, corresponding to EPS of 2.87, 3.84 and 4.98 yuan / share respectively. The current stock price corresponds to PE of 66.9, 50.0 and 38.6 times from 2022 to 2024. The company has broad growth prospects and maintains the “buy” rating.
Revenue maintained rapid growth and R & D investment continued to increase
In 2021, the company realized a business income 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 37.32%. (1) By product, 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%. (2) The company’s R & D and market investment continued to increase, and the sales expense rate and R & D expense rate were 21.19% and 32.98% respectively, with a year-on-year change of – 0.16 and 1.54 percentage points. (3) Contract liabilities amounted to 1.421 billion yuan, with a year-on-year increase of 70.62%, showing a very bright performance.
Optimize the user experience, increase the proportion of long-term paid users, and improve user stickiness
By the end of 2021, the number of monthly active equipment of the company’s main products was 544 million, with a year-on-year increase of 14.05%. On this basis, the company continues to optimize the function experience, promote the cloud of users and improve the use of paid functions. The company’s cumulative number of annual paid individual users reached 25.37 million, a year-on-year increase of 29.31%. The company has accumulated more than 7 million annual super members, and the number of files the company helps users store on the public cloud is about 130 billion.
Launch a new phase of equity incentive plan to further bind the core backbone
The company plans to grant 1 million restricted shares to 127 incentive objects, accounting for about 0.22% of the total share capital, and the grant price shall not be less than 45.86 yuan / share. The performance assessment target is that the compound growth rate of the company’s operating revenue from 2022 to 2024 is not less than 15%, and the trigger value is that the compound growth rate of operating revenue is not less than 10%. The release of the new phase of equity incentive is conducive to binding the core backbone and promoting the long-term and healthy development of the company.
Risk warning: the company’s business development is not as expected; The risk of intensified competition in the market.
