\u3000\u3 Guocheng Mining Co.Ltd(000688) 078 Beijing Longruan Technologies Inc(688078) )
Event: the company released its annual report for 2021 on March 28, 2022. In 2021, the company achieved a total operating revenue of 290867100 yuan, a year-on-year increase of 47.17%; The net profit attributable to the parent company was 630781 million yuan, a year-on-year increase of 24.30%; Deduct non net profit of 593712 million yuan, with a year-on-year increase of 19.77%.
Three platforms enable four product lines, and the mine is intelligent. The company built three platforms based on four product lines and analyzed from different product dimensions. 1) in 2021, the revenue of intelligent mine industrial software was 237686700 yuan, accounting for 83.32% of the main business, with a year-on-year increase of 60.19%. By the end of 2021, among the first 71 pairs of demonstration mines, the company’s core products had been successfully applied in more than 40 pairs of mines; 2) The business revenue of intelligent safety supervision and intelligent emergency system was 339429 million yuan, with a year-on-year increase of 64.54%. The main customers were the State Administration of mine safety, Henan Bureau of the State Administration of mine safety, Energy Bureau of Qianxinan Buyei and Miao Autonomous Prefecture and other units; 3) The revenue of longruangis software was 136432 million yuan, a year-on-year decrease of 18.29%, mainly due to the fact that customers prefer to purchase the overall professional application software including geological survey information system with the improvement of industry informatization; 4) The revenue from purchasing hardware on behalf of the company was 5.5943 million yuan, a year-on-year decrease of 53.14%. The company mainly focuses on software development. The overall solution of organically combining purchasing hardware on behalf of the company with the software developed by the company is a supplement to the company’s software development business.
The smart mine has a high boom and rapid growth in the fourth quarter. The serial smart mine industrial software has a solid leading position. Revenue growth accelerated in the fourth quarter of 2021. In Q4, the company’s revenue was 120 million yuan, a year-on-year increase of 55.84%, significantly higher than the revenue growth in the first three quarters. The company’s customers cover 44 of China’s top 50 coal enterprises in 2021, and more than 1800 mines have adopted the company’s software system.
Investment suggestion: as the leader of smart mine, the company has the ability of closed-loop; At the same time, it combines with Huawei Kuang Hong to further cultivate its vertical industry. The company focuses on mine layout and is expected to form high barriers. According to the disclosure of the company’s 2021 annual report, we adjusted the corresponding year and future forecast. The company’s revenue from 2022 to 2024 reached 418 million yuan, 606 million yuan and 855 million yuan respectively, and the net profit attributable to the parent company was 105 million yuan, 158 million yuan and 230 million yuan, corresponding to PE multiples of 27x, 18x and 12x. Maintain “recommended” rating
Risk warning: the promotion of intelligent mine is not as expected; The competition pattern intensifies the risk; Repeated outbreaks pose the risk of delivery delays.
