Zwsoft Co.Ltd(Guangzhou)(688083) 2021 annual report comments: the performance has achieved rapid growth and the product performance has been significantly improved

\u3000\u3 Guocheng Mining Co.Ltd(000688) 083 Zwsoft Co.Ltd(Guangzhou)(688083) )

Event:

The company issued the 2021 annual report after the closing on April 11, 2022.

Comments:

The domestic and foreign markets of the company developed smoothly, and the net profit attributable to the parent company increased by 50.89% year-on-year

In 2021, the company achieved an operating revenue of 619 million yuan, with a year-on-year increase of 35.65%, mainly due to the company’s active market development, deep cultivation of industry key customers in domestic and overseas commercial markets, and the response of domestic education market to policy guidance and customer needs, which jointly promoted the continuous growth of the company’s operating revenue. Ad revenue increased by 3.94% year-on-year to 2.9 billion yuan; 3dcad achieved a revenue of 138 million yuan, a year-on-year increase of 25.47%; CAE realized a revenue of 3.8275 million yuan, an increase of 3.7667 million yuan year-on-year. The net profit attributable to the parent company was 182 million yuan, a year-on-year increase of 50.89%; The net profit deducted from non parent company was 99 million yuan, with a year-on-year increase of 4.16%. The non recurring profit and loss mainly includes government subsidies and financial income.

Continue to invest in R & D and carry out technical upgrading and transformation of existing CAD products

In 2021, based on the existing CAD products, the company continued to invest in R & D to carry out technical upgrading and transformation of products, and the total R & D cost reached 203 million yuan, a year-on-year increase of 34.23%. In the field of 2dcad, the company released a new version of Zhongwang cad2022; In the field of 3dcad, the company released Zhongwang 3d2022x version; In the field of CAE, the company released the general pre-processing and post-processing platform zwmeshworks2022, the finite element structure simulation and analysis software zwsimstructural2022 and the electromagnetic simulation software zwsim-em2022. In the field of information innovation, the company officially released Zhongwang cad2022linux version, Zhongwang CAD machinery 2022linux version, Zhongwang CAD architecture 2022linux version and Zhongwang 3d2022linux version. In addition, the company has set up a cloud business department, relying on the accumulation of existing overdrive geometric modeling engine technology, 2dcad and 3dcad products, and embarked on the research and development of a new generation of cloud CAD products.

It is proposed to establish a joint venture with Shenzhen Capol International&Associatesco.Ltd(002949) to accelerate the commercialization of BIM application software

On February 17, 2022, the company and Shenzhen Capol International&Associatesco.Ltd(002949) signed the joint venture agreement on the establishment of a joint venture, and planned to jointly invest in the establishment of a joint venture to carry out the business of “domestic BIM (building information model) product R & D and software sales”. The registered capital of the joint venture is 50 million yuan, of which the company contributes 35 million yuan in currency, accounting for 70.00% of the total registered capital Shenzhen Capol International&Associatesco.Ltd(002949) has rich experience in application scenarios and application software development in the architectural design industry. This cooperation will help both companies give full play to their respective advantages and empower each other, improve the company’s R & D capacity, accelerate the commercialization process of the company’s BIM application software and improve the company’s market competitiveness.

Profit forecast and investment suggestions

The company is committed to becoming a world-class industrial software supplier comparable to Dassault and contributing to the world’s industrial progress. Driven by policies, the company is expected to maintain a rapid growth trend and fully benefit from the high prosperity of the industry. It is predicted that the operating revenue of the company from 2022 to 2024 will be 847, 1135 and 1494 million yuan, the net profit attributable to the parent company will be 235, 312 and 430 million yuan, the EPS will be 380, 503 and 6.95 yuan / share, and the corresponding PE will be 53.98, 40.71 and 29.50 times. Due to the overall adjustment of the market and other factors, the company’s share price has adjusted a lot. We adjusted the company’s valuation method to PE method. Since listing, the company’s PE has mainly operated between 70-310 times. At present, the pettm of the computer (Shenwan) index is 40.4 times, giving the company 80 times the target PE in 2022, and the target price is 304.00 yuan. Maintain the “buy” rating.

Risk tips

Covid-19 recurrent pneumonia; The strength of industrial policy support decreased; Technology R & D risk; Market competition intensifies.

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