\u3000\u3 Guocheng Mining Co.Ltd(000688) 111 Beijing Kingsoft Office Software Inc(688111) )
The event company released its annual report for 2021, and achieved a revenue of 3.28 billion yuan during the reporting period, with a year-on-year increase of 45.07%; The net profit attributable to the parent company was 1.041 billion yuan, an increase of 18.57% year-on-year; Net profit deducted from non parent company was 840 million yuan, with a year-on-year increase of 37.32%.
The performance was in line with expectations and the contract liabilities increased. The company released its annual report for 2021, and achieved a revenue of 3.28 billion yuan during the reporting period, with a year-on-year increase of 45.07%; The net profit attributable to the parent company was 1.041 billion yuan, an increase of 18.57% year-on-year; The net profit deducted from non parent company was 840 million yuan, with a year-on-year increase of 37.32%, and the performance was in line with expectations. At the end of the reporting period, the company’s contract liabilities were 1.421 billion yuan, a year-on-year increase of 70.62%. The high increase of contract liability index reflects the good progress of the company’s subscription business, the accelerated process of SaaS cloudization and guaranteed long-term growth.
Personal office service subscription business: the index has grown steadily, the proportion of long-term paying users has increased, and the user stickiness has increased. By the end of the reporting period, the number of monthly living equipment of main products was 544 million, with a year-on-year increase of 14.05%; Among them, the PC terminal was 219 million, an increase of 15.87%, and the mobile terminal was 321 million, an increase of 13.83%. The cumulative number of annual paid individual users at the end of the period was 25.37 million, an increase of 29.31% at the same time; The cumulative number of annual super members exceeds 7 million, and the number of files stored on the cloud is about 130 billion. The transformation results of the company from tools to services have initially appeared.
China’s institutional customer business: Xinchuang has driven a surge in institutional authorization business, and the subscription business has expanded smoothly. In terms of authorization business, as of the end of the reporting period, the revenue of the company’s institutional authorization business was 962 million yuan, a year-on-year increase of 107.1%. The company’s products are suitable for Kirin, Tongxin, Feiteng, Longxin, Zhaoxin, haiguang, Kunpeng and other information innovation systems, and are stably compatible with Linux and other mainstream platforms. At the same time, the government and industry make efforts at the information and innovation end, benefiting from the continuous opening and landing of information and innovation needs and space, and the authorized business of the company’s institutions is guaranteed. In terms of subscription business, at the end of the reporting period, the company achieved institutional subscription and service revenue of 446 million yuan, a year-on-year increase of 23.40%; The number of registered enterprises in the public cloud market of the company has exceeded one million, expanding to e-commerce, retail, engineering construction, educational institutions and other industries, accumulating experience in many large enterprises such as Zhihu, Huawei welink, Shanghai International Airport Co.Ltd(600009) and improving product availability and user stickiness.
Equity incentive binds core technical talents to ensure long-term performance growth. The company issued the draft of equity incentive in 2022 and plans to grant 1 million restricted shares to the incentive objects, accounting for 0.22% of the total share capital of the company. Based on the operating revenue in 2021, the target value is about 15% of the compound growth rate from 2022 to 2024. There are 127 incentive objects in total, including core managers and technical backbones. During the reporting period, the R & D expenditure was RMB 1.082 billion, with a year-on-year increase of 52.15%, and the R & D expenditure rate was 32.98%, with a year-on-year increase of 1.53%. High R & D and equity incentives ensure the strength and competitiveness of the company’s products and contribute to long-term development.
Investment suggestion we predict that the company’s EPS from 2022 to 2024 will be 3.02/4.03/5.36, and the corresponding P / E ratio will be 63 / 47 / 35 respectively. The company’s licensing and subscription businesses are progressing smoothly. In the future, it will benefit from the opening of the alternative industry space of Xinchuang. It is optimistic about the future development of the company and maintain the “recommended” rating.
The risk indicates the risk of intensified market competition: the investment in R & D and sales plus the general period cost is high, and can not bring the risk of expected growth of revenue and profit; Risk of mismatch between technological innovation, product iteration and market.
