\u3000\u3 Guocheng Mining Co.Ltd(000688) 111 Beijing Kingsoft Office Software Inc(688111) )
The overall revenue is in line with expectations, and the amount of credit creation at end B is large.
In 2021, the operating revenue was 3.28 billion yuan, with a year-on-year increase of 45.07%; 2021 single Q4 achieved a revenue of 908 million yuan, a year-on-year increase of 19.8%. In 2021, the revenue of personal office service subscription business was 1.47 billion yuan, with a year-on-year increase of 44.20%; China’s institutional subscription and service revenue was 450 million yuan, a year-on-year increase of 23.40%; The authorized business income of Chinese institutions was 960 million yuan, an increase of 107.10% year-on-year, mainly due to the large volume of Xinchuang business; The revenue from Internet advertising and other businesses decreased by 101.4% year-on-year
High investment for future growth, Q4 profit has a slight impact.
In 2021, the net profit attributable to the parent company was 1.04 billion yuan, a year-on-year increase of 18.57%, and the deduction of non attributable to the parent company was 840 million yuan, a year-on-year increase of 37.32%. In 2021q4, the net profit attributable to the parent company was 193 million yuan, a year-on-year decrease of 31.64%, and the deduction of non attributable to the parent company was 138 million yuan, a year-on-year decrease of 36.6%. The gross profit margin decreased by 0.89% to 86.91%, the R & D expense was 1.082 billion yuan, with a year-on-year increase of 52.15%, and the R & D expense rate increased by 1.54% to 32.98%, of which the number of R & D personnel increased by 49.68%, which had a certain impact on the net profit as a whole
The number of paying users and ARPU increased brightly, and the cash flow performance slightly exceeded expectations.
The number of monthly active equipment of the company’s main products was 544 million, with a year-on-year increase of 14.05%. Among them, WPS officepc has 219 million monthly active devices, with a year-on-year increase of 15.87%; The number of mobile version monthly active devices was 321 million, with a year-on-year increase of 13.83%; The cumulative number of annual paid individual users of the company reached 25.37 million, a year-on-year increase of 29.31%, ARPU reached 58 yuan, and the cumulative number of annual super members exceeded 7 million. In 2021, the net operating cash flow was 1.864 billion yuan, a year-on-year increase of 23.10%. At the end of 2021, the contract liabilities were 1.421 billion yuan, an increase of 70.6% year-on-year over the beginning of the period.
The issuance of equity incentive plan has significantly improved the enthusiasm of senior employees at the core level.
The company plans to grant 1 million restricted shares to 127 core managers and technical backbone incentive objects, accounting for 0.22% of the total share capital. The grant price is tentatively set at no less than 45.86 yuan / share. The target value of equity incentive income shall not be lower than 15% / 15% / 16% in 22-24 years; The trigger value is 10% / 10% / 10%. Investment suggestion: the continuous promotion of the company’s C-end products is expected to lay the foundation for follow-up performance. The industry / township / county Xinchuang stimulates the demand of the b-end, and combined with the polishing of the company’s b-end products, it is expected to form a new growth power. Based on the annual report of 2021, fine tune the company’s revenue forecast from 2022 to 2024 to be RMB 4428 / 5978 / 7951 million (the original forecast was RMB 4428 / 5978 million in 2022 / 2023), fine tune the net profit forecast to be RMB 1426 / 1951 / 2603 million (the original forecast was RMB 1427 / 1958 million in 2022 / 2023), and maintain the “buy” rating.
Risk tip: the order of Xinchuang is less than expected, the subscription promotion of end C is less than expected, the promotion of new products of end B is less than expected, and the increase of payment penetration is less than expected.
