\u3000\u30 Jinzai Food Group Co.Ltd(003000) 36 Beijing Supermap Software Co.Ltd(300036) )
Event: on March 25, 2022, the company released its annual report for 2021. The company achieved revenue of 1.875 billion, yoy + 16.5%; Net profit attributable to parent company: 288 million, yoy + 22.6%; The net profit attributable to the parent company after deducting non profits was 269 million, yoy + 21.7%.
Comments:
Stable position and steady growth. (1) Stable market position: as the leader of China’s GIS software industry, SuperMap, its advantageous software product, has firmly ranked the third in the Global GIS market share and the first in the Asian GIS market share. (2) Steady growth: in 2021, the company overcame the difficulties in project implementation caused by repeated epidemic, and its revenue and net profit performance were better than the average speed of the industry. The number of employees increased by 8%, and the per capita income increased from 428000 / year to 462000. Looking at 2021q4 alone, the revenue and net profit attributable to parent company yoy were 9.3% / 8.1%, far lower than the growth rate of q1-q3, mainly due to the year-on-year fluctuation caused by the high base of 2020q4 and the negative impact of 21q4 epidemic.
Industry Xinchuang helps new growth, and domestic substitution is at the right time. In 2021, the number of information innovation projects of the company increased significantly year-on-year, of which three subsidiaries obtained the state secret qualification. The company participated in the construction of information innovation projects at the ministerial level, realized the implementation of information innovation orders from 9 ministries and commissions and more than 30 provinces and cities, and had information innovation benchmark projects at the ministerial, provincial, municipal and county levels, which had a good demonstration effect. In 2021, the domestic substitution of industry basic software began to extend from the party and government field to the commercial field. The company’s supermapgis10i (2021) version was officially released, and its performance has been comparable to that of its peer Yi Zhirui. It is expected that the 11i version will be released and promoted in 2022. The company has significantly improved in the formulation of technical standards and product adaptability. (1) As a member of the information technology application and innovation Working Committee, the company’s relevant personnel served as the leader of the GIS information innovation group, took the lead in completing the GIS test outline, and participated in the investigation, preparation and release of the blue book on information technology innovation security development – product security volume as the only enterprise in the GIS industry. (2) The docking test and adaptation of the company’s products with 7 CPUs, 12 operating systems and 19 databases such as Kunpeng, Feiteng, Longxin, Shenwei and haiguang have been completed. With the promotion of industry information innovation, the domestic substitution trend is obvious. As the leader of domestic GIS industry, the company will directly benefit from the general trend of industry development, and the company has obvious advantages in technology and product power. The gross profit margin of relevant information innovation products may be higher, which will help to improve the overall profitability.
Three dimensional GIS constructs the bottom layer of the virtual world, and the digital chassis and other businesses can be expected in the future. (1) 3D GIS is becoming the base of digital world technology. The company has advanced research and development and continued to polish the functions of 3D GIS. Supermapgis10i (version 2021) supports a variety of geographic entity types, constructs a “geographic entity database”, and adds many new features in 3D visualization and 3D interactive experience, which can provide richer and more realistic visual sense and experience for applications such as metauniverse, digital twin and smart city. As the first year of further promoting the development plan of digital economy, more application scenarios will appear in 2022. Scenes such as virtual world need to build strong underlying logic. 3D GIS is the core tool for managing “geographical location”, which can fuse and manage a large number of multi-source heterogeneous data, and then become an important base for 3D world simulation. (2) The digital chassis business has grown significantly. In 2021, the company’s digital chassis business contract achieved a year-on-year increase of 67%, successively winning relevant projects in Wuhu, Changchun, Lishui, Ningbo, Xiamen, Jinan, Luzhou, Xi’an and other places, of which the winning amount of smart Wuhu project was 30.98 million yuan. We expect that the advantages of the company’s three-dimensional and digital base products will be more obvious, drive the increase of upper application software projects, and form a double increase in revenue and valuation.
The company’s profit forecast and investment rating: the company’s SuperMap basic software technology is solid, the industry information innovation has just started, and there is no danger of medium-term growth. The company has made efforts to expand three-dimensional and cloud versions, with far-reaching layout and long-term growth. We expect the net profit of the company from 2022 to 2024 to be 397 / 528 / 680 million respectively, and the PE value corresponding to the current stock price is 26 / 19 / 15 times respectively, maintaining the “strongly recommended” rating.
Risk tip: the software development is not as expected, the expansion of 3D GIS and cloud version slows down, and uncontrollable factors such as epidemic situation lead to revenue fluctuations.
