\u3000\u30 Guangdong Tengen Industrial Group Co.Ltd(003003) 78 Digiwin Software Co.Ltd(300378) )
Performance summary: the company achieved an operating revenue of 1.79 billion yuan in 2021, a year-on-year increase of 19.5%; In 2021, the company realized a net profit attributable to the parent company of 110 million yuan, a year-on-year decrease of 7.6%.
The company’s annual revenue increased significantly in 2021, and the net profit attributable to the parent decreased slightly compared with the previous year due to the impact of equity incentive expenses. 1) From the revenue side, the company’s revenue increased by 19.5% year-on-year in 2021, mainly due to the obvious growth of business revenue in all sectors of the company and the continuous regional expansion. In terms of business, the sales revenue of the company’s self-made software reached 550 million yuan, a year-on-year increase of 26.1%; The sales revenue of purchased software and hardware reached 360 million yuan, a year-on-year increase of 19.6%; The income from technical services reached 880 million yuan, a year-on-year increase of 15.7%; 2) From the profit side, the net profit attributable to the parent company in 2021 decreased by 7.6% year-on-year, mainly due to the allocation of equity incentive expenses of the company in 2021, with a total amount of RMB 50 million. After excluding the impact, the net profit attributable to the parent company was RMB 170 million, with a year-on-year increase of 36.6%. The gross profit margin of the company was 66.3%, which was basically the same as that of the same period last year; The net interest rate was 6.3%, down 1.8% from the same period last year; 3) From the cost side, the company’s sales, management and R & D expense rates in 2021 were 33.2%, 12.8% and 12.8% respectively.
The company continued to deepen industrial cooperation and developed its businesses at a high speed. The company actively promotes the strategic cooperation with Foxconn Industrial Internet Co.Ltd(601138) , promotes the integration of it and OT, improves the business layout in intelligent manufacturing and industrial Internet, works together to build a lighthouse factory for leading customers in subdivided industries, and helps enterprises to transform and upgrade digitally and intelligently; At the same time, the company strengthened cooperation with Huawei to jointly create intelligent manufacturing application scenarios and jointly build a digital industry ecology. In 2021, the company’s service commodity business grew rapidly, the coverage proportion of service commodities in the contracted customer group increased significantly, the number of contracted customers of service commodities increased by 32% year-on-year, and the contracted amount increased by 36% year-on-year; The company’s intelligent manufacturing business ushered in the historical opportunity of policy support and rapid development of the industry. In 2021, the company’s business revenue was 290 million yuan, with a year-on-year increase of 27.4%, accounting for 16.4% of revenue. Among them, the intelligent manufacturing business in mainland China increased by 51% year-on-year.
Profit forecast and investment suggestions. It is estimated that the EPS from 2022 to 2024 will be 0.70 yuan, 0.89 yuan and 1.14 yuan respectively, and the net profit attributable to the parent company will reach a compound growth rate of 39.5% in the next three years. Considering that the policies promote the rapid development of intelligent manufacturing, industrial Internet and cloud services, the company, as a leading service provider of integrated solutions for enterprise digital transformation and intelligent manufacturing in China, has strong R & D and innovation ability, rich project experience and high-quality customer resources. It is expected that the company’s order volume will usher in a new growth in 2022, with a valuation of 35 times in 2022 and a corresponding target price of 24.5 yuan for the first time, and a “buy” rating.
Risk warning: the cooperation with Foxconn Industrial Internet Co.Ltd(601138) is not as expected, and the customer expansion is not as expected.
