\u3000\u3 Shengda Resources Co.Ltd(000603) 859 Nancal Technology Co.Ltd(603859) )
Event:
The company achieved an operating revenue of 1.141 billion in 21 years, with a year-on-year increase of 19.85%; The net profit attributable to the parent company was 159 million, with a year-on-year increase of 32.70%; The net profit after non deduction was 156 million, with a year-on-year increase of 29.71%.
The performance is in line with expectations, and intelligent manufacturing is growing rapidly
The company achieved an operating revenue of 1.141 billion in 21 years, with a year-on-year increase of 19.85%, of which the intelligent manufacturing business achieved an operating revenue of 1.001 billion, with a year-on-year increase of 28.94%, accounting for 87.77% of the total operating revenue. In terms of gross profit margin, the gross profit margin increased by 0.06 percentage points year-on-year, of which intelligent manufacturing increased by 0.36 percentage points and intelligent appliances decreased by 1.33 percentage points. In terms of expense rate, the sales expense rate and financial expense rate decreased by 0.14 and 0.07 percentage points respectively, and the management expense rate and R & D expense rate increased by 0.3 and 0.2 percentage points respectively. We believe that the overall performance of the company is in line with expectations, and the intelligent manufacturing business is expected to maintain rapid growth in the future.
The military industry is growing at a high speed, and more efforts will be made to cut into the civilian field
In terms of the industry of serving downstream customers, the proportion of the company’s operating revenue in the national defense and military industry was further expanded, realizing a revenue of 515 million, accounting for 45.16% of the total operating revenue, with a year-on-year increase of 33.50%; The high-tech electronics and 5g industries had the fastest year-on-year growth, with an operating revenue of 220 million, accounting for 19.28% of the total operating revenue, with a year-on-year increase of 37.78%; Affected by the prosperity of downstream customers and other factors, the automobile and rail transit industry realized an operating revenue of 143 million, which was basically the same year-on-year; Equipment manufacturing and other industries realized an operating revenue of 130 million, a year-on-year increase of 16.08%. We believe that in addition to the military industry, the company will also focus on civil fields such as large consumer goods industry, new energy industry and process manufacturing industry in the future to increase the proportion of civil fields.
Self developed products have been released one after another, and the profit model is expected to be transformed
During the reporting period, the company released three self-developed product series: apaas, cloud service platform and data platform. Lechang productivity platform and scenario based data management platform will focus on the promotion of large enterprise users, especially users in high-end manufacturing industries such as national defense and military industry, high-tech electronics and 5g; Post factory manufacturing is mainly for small and medium-sized enterprise users and individual users. We believe that with the continuous promotion of self-developed products, the company’s service model has changed from traditional customized solutions to products, platforms and cloud services, and the gross profit margin and net profit margin are expected to continue to increase in the long term
Investment suggestion: considering the promotion progress of self-developed products and the transformation rhythm of profit model, we adjusted the profit forecast for 22-23 years, adjusted the revenue from 1.722/2.29 billion to 1.46/1.898 billion, and adjusted the net profit from 2.65/3.67 to 212286 million, maintaining the “buy” rating.
Risk tip: the expansion of civil industry is less than expected, the promotion of self-developed products is less than expected, and the transformation of profit model is less than expected
