\u3000\u30 Shaanxi Zhongtian Rocket Technology Co.Ltd(003009) 96 Pansoft Company Limitid(300996) )
Core view
In the whole year, the company achieved high profit growth and steadily improved its profitability. In 2021, the company realized a revenue of 582 million yuan, a year-on-year increase of + 37.86%; The net profit attributable to the parent company was 139 million yuan, a year-on-year increase of + 66.18%; The net profit attributable to the parent company after non deduction was 126 million yuan, a year-on-year increase of + 59.58%. In the fourth quarter alone, the company achieved an operating revenue of 369 million yuan, a year-on-year increase of + 31.74%; The net profit attributable to the parent company was 94 million yuan, a year-on-year increase of + 44.68%. The company’s annual net profit attributable to the parent company was 23.80%, up 41.2bps from 19.68% in the same period last year, mainly benefiting from the higher gross profit level of the overall business of the construction industry and the decline of the corresponding expense rate caused by the effect of business scale. By industry, the company achieved an income of 300 million yuan in the field of petroleum and petrochemical, a year-on-year increase of + 12.83%; The revenue in the construction field was 183 million yuan, a year-on-year increase of + 187.99%, mainly benefiting from the continuous volume of the company’s business in China Construction Group.
Important breakthroughs have been made in digital construction products, and the business space has been fully opened. In the past, the company has been deeply involved in the group’s management and control business. Since 2021, through cooperation with China Construction Group, the company has gradually made a breakthrough in the field of digital construction products. In 2021, the company achieved a total digital construction revenue of 115 million yuan, accounting for 62.84% of the overall revenue of customers in the construction industry, which has become an important turning point for the company to gradually open the business system software space from the financial system. In 2021, the gross profit margin of the company’s construction business was 52.81%, much higher than the company’s comprehensive gross profit of 40.79% in the traditional petroleum and petrochemical industry. It is expected that with the further increase of the proportion of construction business, the company’s profitability still has room to rise. Large group enterprises in the construction industry have begun comprehensive digital construction. By participating in the construction of China Construction Group 136 project, Pulian has set up a benchmark project for digital construction in the industry, which is expected to open a new growth space. During the reporting period, the company has successfully expanded customers in the construction industry such as China Railway Construction Corporation Limited(601186) , China Railway Group Limited(601390) , etc.
The policy has accelerated the digital construction of state-owned enterprises, and the market space is broad. In March 2022, the SASAC issued the guidance on central enterprises to accelerate the construction of a world-class financial management system, which clearly pointed out that financial management is the central link of enterprise management. It requires central enterprises to focus on the deep integration of digital technology and financial management, take the construction of treasurer system as the entry point to promote the digital transformation and upgrading of financial management, and reconstruct the management system of internal funds and other financial resources, Accelerate the construction of a world-class financial management system. Pulian has long served China’s large group enterprises and has a long-term and in-depth understanding of customers’ industry characteristics, management mode and business processes; The existing Treasury and other products are expected to fully benefit from the digital construction of state-owned enterprises. Risk tips: risks such as fluctuation of macroeconomic situation, less than expected promotion of digital construction policies of state-owned enterprises, rising labor costs, etc.
Investment suggestion: considering that the company is expected to fully open the construction business space, we raised our profit forecast and maintained the “buy” rating. It is estimated that the net profit attributable to the parent company from 2021 to 2023 will be RMB 189 / 269 / 383 million, with a year-on-year growth rate of 38.4% / 35.2% / 33.0%; Diluted EPS = 1.34/1.91/2.71 yuan, and the current share price corresponds to PE = 23.9/16.8/11.8x.
