\u3000\u30 Guangdong Tengen Industrial Group Co.Ltd(003003) 78 Digiwin Software Co.Ltd(300378) )
Event:
The company issued the 2021 annual report after the closing on March 30, 2022.
Comments:
After excluding the impact of equity incentives, the net profit attributable to the parent company was 65.36% year-on-year
In 2021, the company achieved an operating revenue of 1.788 billion yuan, a year-on-year increase of 19.52%; The net profit attributable to the parent company was 112 million yuan, a year-on-year decrease of 7.58%; The net profit deducted from non parent company was 91 million yuan, with a year-on-year increase of 10.74%; The net cash flow from operating activities was 317 million yuan, a year-on-year increase of 40.26%. Excluding the impact of equity incentives, the net profit attributable to the parent company was 166 million yuan, a year-on-year increase of 36.65%. In terms of products, the sales revenue of self-made software was 549 million yuan, a year-on-year increase of 26.10%; The sales revenue of purchased software and hardware was 363 million yuan, a year-on-year increase of 19.59%; The income from technical services was 876 million yuan, a year-on-year increase of 15.71%. Regionally, the income of Chinese mainland was 851 million yuan, up by 37.03% over the same period last year. Chinese mainland revenue increased by 937 million yuan, up 7.10% over the same period last year.
Intelligent manufacturing business has achieved rapid growth, and b-end SaaS products have been gradually verified
1) service goods: in 2021, the coverage proportion of service goods in the contracted customer base was significantly increased, the number of service goods contracted increased by 32% year-on-year, and the contracted amount increased by 36% year-on-year. The company continues to focus on advantageous industries and set up business departments in equipment manufacturing, semiconductor, automobile industry, printing and packaging and other industries.
2) intelligent manufacturing business: the company's intelligent manufacturing business revenue was 293 million yuan, a year-on-year increase of 27.39%, and the revenue accounted for 16.39%. Among them, the intelligent manufacturing business in the mainland increased by 51% year-on-year.
3) cloud and industrial Internet business: in 2021, the company further developed lightweight SaaS product applications, continuously optimized the products and functions of lightweight SaaS application "A1 business cloud", improved the product depth of it intelligent operation and maintenance service "service cloud", continuously improved the intelligent operation and maintenance system of "after-sales cloud", and continuously improved customer service efficiency and management efficiency. Through a series of layouts, the company's b-end oriented SaaS product model has been gradually verified and will bring new business opportunities to the company.
Promote strategic cooperation with Foxconn Industrial Internet Co.Ltd(601138) , and build a lighthouse factory with leading customers in subdivided industries
The company actively promotes the strategic cooperation with Foxconn Industrial Internet Co.Ltd(601138) , takes its own technology platform as the base, integrates Foxconn Industrial Internet Co.Ltd(601138) ot data acquisition and edge computing technology, and works together to build a lighthouse factory for leading customers in subdivided industries. The CITIC daika project jointly constructed by the two sides successfully passed the global lighthouse factory certification of Davos Economic Forum in 2021. The construction of the lighthouse factory project will help the company to continuously explore and summarize the digital transformation path of industry leading customers, and repackage the operation and management and industrial mechanism of leading enterprises into software to further empower other large, medium and small customers.
Profit forecast and investment suggestions
The company is a leading enterprise digital and intelligent solution service provider in China. It continues to deepen its cooperation with Foxconn Industrial Internet Co.Ltd(601138) and has a broad space for long-term growth. It is predicted that the operating revenue of the company from 2022 to 2024 will be RMB 2.102, 2.448 and 2.828 billion, the net profit attributable to the parent company will be RMB 172, 226 and 289 million, the EPS will be RMB 0.65, 0.85 and 1.08/share, and the corresponding PE will be 28.05, 21.38 and 16.69 times. At present, the pettm of the computer (Shenwan) index is 44.2 times. Considering that the company's business in the mainland is expected to maintain rapid growth, the company is given a target PE of 40 times in 2022, and the corresponding target price is 26.00 yuan. Maintain the "buy" rating.
Risk tips
Covid-19 recurrent pneumonia; No actual controller risk; The expansion of new businesses such as intelligent manufacturing and industrial Internet is less than expected; The cooperation with Foxconn Industrial Internet Co.Ltd(601138) was not advanced as expected.
