\u3000\u3 Guocheng Mining Co.Ltd(000688) 111 Beijing Kingsoft Office Software Inc(688111) )
Events:
The company issued the 2021 annual report and the 2022 restricted stock incentive plan (Draft) on the evening of March 23, 2022.
Comments:
The operating revenue increased by 45.07% year-on-year, and the net profit deducted from non parent company increased by 37.32% year-on-year
In 2021, the company achieved good operating results and achieved 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 deducted from non parent company was 840 million yuan, with a year-on-year increase of 37.32%; Net operating cash flow was 1.864 billion yuan, a year-on-year increase of 23.10%. Among the main businesses, 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 406 million yuan, a year-on-year decrease of 3.01%.
The number of monthly active devices increased steadily, and the cumulative number of annual paid individual users reached 25.37 million
In 2021, based on the stable growth of monthly active devices of main products, the company will continue to optimize the function experience, promote the cloud of users, improve the utilization of payment functions and promote the continuous increase of payment people. 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%. Among them, wpsofficepc has 219 million monthly active devices, with a year-on-year increase of 15.87%; The monthly number of active mobile devices was 321 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. By the end of 2021, the company has accumulated 25.37 million annual paid individual users, more than 7 million annual super members, and about 130 billion files stored on the public cloud.
The issuance of 2022 stock incentive plan will help the company achieve its long-term development goals
The company plans to grant 1 million restricted shares to the incentive objects, accounting for about 0.22% of the total share capital of the company at the time of announcement of the draft incentive plan, and the grant price shall not be less than 45.86 yuan / share. Among them, 800000 restricted shares are granted for the first time, and the assessment year is three fiscal years from 2022 to 2024. The performance assessment target values are as follows: Based on 2021, the growth rate of operating revenue in 2022 is not less than 15.00%; The cumulative growth rate of operating revenue in 2022 and 2023 shall not be less than 147.25%; The cumulative growth rate of operating revenue in 2022, 2023 and 2024 shall not be less than 300.66%. The incentive plan is conducive to encouraging employees to give full play to their subjective initiative and achieve the company’s long-term development goals.
Profit forecast and investment suggestions
The company is a leading office software and service provider in China. Driven by policies, domestic software has ushered in spring, and the company has a broad space for sustainable growth in the future. It is predicted that the operating revenue of the company from 2022 to 2024 will be 4.520, 6.066 and 7.990 billion yuan, the net profit attributable to the parent company will be 1.402, 1.917 and 2.543 billion yuan, the EPS will be 304, 4.16 and 5.52 yuan / share, and the corresponding PE will be 62.52, 45.72 and 34.45 times. At present, the company’s operating revenue is growing rapidly, there are more investment in R & D, market and other expenses, and the net profit margin is low. Therefore, the PS valuation method is more reasonable. Since its listing, the company’s PS has mainly operated between 25-115 times, maintaining the company’s target PS of 35 times in 2022, with the corresponding target price of 343.18 yuan and maintaining the “buy” rating.
Risk tips
The growth of paying users is lower than expected; The replacement process of localization is lower than expected; Other companies have entered the office software market, and the market competition has intensified.
