\u3000\u3 Guocheng Mining Co.Ltd(000688) 369 Beijing Seeyon Internet Software Corp(688369) )
Event: on the evening of April 12, Beijing Seeyon Internet Software Corp(688369) released its annual report for 2021, realizing a revenue of 1.031 billion yuan, a year-on-year increase of 35.10%; The net profit attributable to the parent company was 129 million yuan, a year-on-year increase of 19.69%; The non net profit attributable to the parent company was 120 million yuan, with a year-on-year increase of 35.92%.
The performance met expectations and the quality of net profit was further improved. In 2021, the company achieved a revenue of 1.031 billion yuan, a year-on-year increase of 35.10%; The net profit attributable to the parent company was 129 million yuan, a year-on-year increase of 19.69%; The non net profit attributable to the parent company was 120 million yuan, with a year-on-year increase of 35.92%, which was in line with expectations as a whole. Among them, the growth rate of non net profit attributable to the parent company is much higher than that attributable to the parent company, which is mainly due to the decline of non recurring investment income such as financial management in 21 years; At the same time, due to the implementation of the equity incentive plan, the share based payment expenses were confirmed to be about 16.28 million yuan in 21 years, with a year-on-year increase of about 497%. After deducting the impact of share based payment expenses, the net profit attributable to the parent company in 21 years was about 145million yuan, with a year-on-year increase of about 31.49%, indicating that the quality of the company’s net profit structure was further improved. In terms of profit margin, the overall gross profit margin of the company in 21 years was about 72.29%, a year-on-year decrease of about 4.77 percentage points, which was mainly due to the increase of delivery cost caused by the increase of customized contract content, the increase of salary of delivery personnel, the increase of information innovation projects including integrated content, the increase of third-party product cost and low gross profit strategic projects. The sales expense ratio was about 38.94%, with a year-on-year decrease of about 4.15 percentage points; The management expense rate was about 7.70%, a year-on-year decrease of about 1.63 percentage points, and the expense rate was generally well controlled during the period. The R & D expense rate was about 17.56%, with a year-on-year increase of about 1.89 percentage points; The net profit margin was about 12.49%, a year-on-year decrease of about 1.61 percentage points, mainly due to the decline of gross profit margin and the increase of R & D expense rate.
Continue to increase R & D investment and lay a solid foundation for platform and cloud strategy. The company’s annual R & D investment reached about 181 million yuan, a year-on-year increase of about 51.38%; The R & D expense rate reached 17.56%, with a year-on-year increase of about 1.89 percentage points. The number of R & D personnel reached 576, with a year-on-year increase of about 32.72%, accounting for 23.10% of the total number of employees of the company. During the reporting period, the company continued to increase the optimization and upgrading of the existing V5 platform and the research and development of cloud business, comprehensively improved the performance of V5 collaborative management technology platform, and built a collaborative operation platform for customers based on V5 platform to further broaden the business boundary; The overall R & D platform and V8 management platform have been put into a new phase, and the overall R & D platform has been put into a new generation of collaborative technology. We believe that the continuous increase of the company’s R & D investment can effectively ensure to keep up with the development trend of industry technology and business model, and continuously enable the company’s platform and cloud transformation strategy.
With the rapid growth of Xinchuang business, the collaborative operation platform further opens up the growth space of the company. During the reporting period, the company’s credit creation business achieved substantial growth, with a revenue of about 120 million yuan, a year-on-year increase of about 149.49%; Among the newly signed direct selling contracts, the contract amount of Xinchuang was about RMB 229 million, with a year-on-year increase of 103.37%, of which the contract amount of government Xinchuang was about RMB 137 million, with a year-on-year increase of 37.23%; The contract amount of Xinchuang in the industry was about 92 million yuan, with a year-on-year increase of about 631.41%. At the same time, we will continue to improve the industrial ecology of Xinchuang and reach strategic cooperation with Lanxin mobile, Qi An Xin Technology Group Inc(688561) , and Qilin software. We believe that the company has accumulated good market competitive advantages in the field of collaborative office, government information and innovation. At the same time, it has made a rapid breakthrough in the field of industry information and innovation. With the further cultivation in the field of government information and innovation in 22 years and the large amount of information and innovation in finance and other industries, the company’s information and innovation business is expected to continue to maintain a rapid growth trend. In addition, during the reporting period, the company launched the collaborative operation platform solution. At the customer application level, integrating the company’s many years of implementation and delivery experience, and with the help of Zhiyuan low code platform, the company combed and launched many standard business application products, including project management, asset management, cost control management, human resource management, contract management, procurement management and so on. The revenue of non OA collaborative business and collaborative operation products in the direct sales revenue reached 474 million yuan, It is about 2.5 times that of traditional OA collaborative office business, further opening up business growth space.
The cloud transformation strategy has been smoothly promoted, and the new generation V8 platform has entered the customer verification period. During the reporting period, the company firmly promoted the “cloud transformation” strategy and realized a cloud business revenue of about 105 million yuan, a year-on-year increase of about 123.16%. We intensified efforts to expand HR cloud services, comprehensively improved the cloud service capability of digital intelligence human resources, and optimized the capability of human cloud platform based on AI intelligent engine, big data service engine and low code PAAS platform engine. In 21 years, the scale of customers increased by more than 125% and the scale of monthly live users increased by 715%. In addition, the company’s new generation collaborative cloud platform V8 has entered the customer verification period. It adopts mainstream technology stacks such as cloud native and micro service architecture to support the exclusive cloud deployment of large / large organizations and SaaS online subscription mode of small and medium-sized organizations. We believe that the launch of V8 platform is expected to further broaden the large-scale enterprise customer market and increase customer stickiness. At the same time, it will further accelerate the promotion speed of the company in the SaaS field and open a new accelerator for the company’s cloud transformation strategy.
Profit forecast and valuation rating. The company is a leading manufacturer in the field of collaborative management software in China. With the gradual extension of Xinchuang from the party and government to the industry and the continuous deepening of the company’s platform and cloud strategy, its performance is expected to continue to improve. We estimate that the operating revenue of the company from 2022 to 2024 will be RMB 1.384/18.12/2.280 billion respectively, the net profit attributable to the parent company will be RMB 183254/338 million respectively, and the P / E ratio will be 21.03/15.13/11.38 times. Maintain the “buy rating”.
Risk tips: 1 The promotion speed of Xinchuang is lower than expected; 2. The overall development of the industry is less than expected; 3. The industry competition intensifies, and the business expansion of the company’s collaborative management software is less than expected.
