\u3000\u3 Shengda Resources Co.Ltd(000603) 613 Beijing United Information Technology Co.Ltd(603613) )
Performance review
On the evening of April 11, 2022, Beijing United Information Technology Co.Ltd(603613) released the annual report of 2021. In 2021, the company achieved revenue of 37.23 billion yuan, a year-on-year increase of + 116.98%; The net profit attributable to the parent company was 578 million yuan, a year-on-year increase of + 89.97%; After deducting non recurring profits and losses such as government subsidies, profits and losses of entrusted investment or assets under management, the non net profit was deducted by 531 million yuan, a year-on-year increase of + 98.62%. Both the net profit attributable to the parent company and the net profit deducted from the non parent company exceed the upper limit of the performance forecast.
Business analysis
With the increase of the proportion of e-commerce business of industrial products, the profit margin and expense rate of the company have decreased: in 2021, the gross profit margin of the company was 3.26%, year-on-year -0.19pct; The net profit margin of sales was 1.90%, year-on-year -0.19pct; The ratio of sales / management / R & D expenses was -0.04 / – 0.08 / + 0.01pct year-on-year respectively. The year-on-year decline in profit margin and expense ratio is mainly due to structural reasons, that is, the increase in the proportion of e-commerce business income of industrial products with low gross profit and low cost. The company’s main business is the e-commerce business of industrial products. The gross profit margin in 2021 was 3.00%, with a year-on-year increase of -0.01pct, which remained basically stable.
Multiple industry platforms go hand in hand, and the main business has full potential for growth: the company’s industrial e-commerce business is mainly composed of six vertical industry platforms. In 2021, Tu Duoduo, with the longest history and the largest volume, achieved a revenue of 22.895 billion yuan, a year-on-year increase of + 95.71%; The income of weiduoduo / zhiduoduo was 5.576/3.210 billion yuan, a year-on-year increase of + 150.65 / + 109.05%; The new platform paper Duoduo / fertilizer Duoduo / grain and oil Duoduo launched in 2019 achieved a revenue of 546 / 23.17 / 2.520 billion yuan, a year-on-year increase of + 126.8% / 210.6% / 341.1%. The company’s old platform continues the trend of high growth, while the new platform is also beginning to enter the mass production stage.
Recently, the supply chain of industrial products has been tight, and the company’s operating cash flow has been affected to a certain extent: the net cash flow of the company’s operating activities in 2021 was RMB 271 million, a year-on-year increase of – 65.08%. Mainly because of the tight supply of some main categories, in order to fully ensure the supply of goods and the performance of existing orders, and prepare the order plan for 2022q1, the advance payment of the company increased from 1.18 billion yuan at the end of 2020 to 2.513 billion yuan at the end of 2021.
The overall penetration rate of e-commerce of industrial products is not high, and there is much to be done in the future: according to the company’s calculation, the penetration rate of the company’s self operated e-commerce at the end of 2021 is only 1.02%, of which, except Tu Duoduo and Bo Duoduo (the penetration rate is 2.09% / 1.09%), the penetration rate of other “Duoduo” platforms in corresponding industries is less than 1%.
Profit forecast and investment rating: industrial products trading is a very large track. At present, it is in the high-speed growth stage of climbing penetration. The company’s industrial products e-commerce business has the potential of horizontal replication and vertical deep excavation. It is expected to achieve sustained high growth by broadening users and increasing customer unit price. We raised the forecast of the company’s net profit attributable to the parent company from RMB 930/1.48 billion to RMB 970/1.56 billion from 2022 to 2023. It is predicted that the net profit attributable to the parent company will be RMB 2.48 billion in 2024, corresponding to a year-on-year growth rate of 67%/62%/59% from 2022 to 2024. The closing price on April 11 corresponds to a p/e of 37/23/15x, maintaining the “buy” rating.
Risk tips: the price of industrial products fluctuates, the development of new platforms is less than expected, users lose or default, the promotion of industrial Internet strategy is less than expected, and the industry competition intensifies
