\u3000\u3 Guocheng Mining Co.Ltd(000688) 083 Zwsoft Co.Ltd(Guangzhou)(688083) )
The company’s revenue grew by 35.65% in the past 21 years, and equity incentive guided steady growth in the future. In 2021, the company achieved a revenue of 619 million yuan (+ 35.65%), a net profit attributable to the parent company of 182 million yuan (+ 50.89%), and a net profit not attributable to the parent company of 99 million yuan (+ 4.16%). The company released the equity incentive plan in 2021, which corresponds to the compound growth rate of annual revenue of 35% in the next three years. The company has realized the unlocking conditions of equity incentive in 21 years. The equity incentive of the company has achieved full coverage of core technical employees, which is expected to reveal the bottom of the company’s growth in the long term.
The education sector continued to maintain high growth, and the overseas market gradually recovered. In terms of segments, in the domestic commercial market, the company’s revenue in this segment accounted for 57.90% in 21 years, with a year-on-year increase of 29.61%. The company adopts comprehensive “localization” service, steadily expands the coverage of direct sales network, and actively recruits channel dealers; In the domestic education market, the company’s revenue in this sector accounted for 24.34% in 21 years, with a year-on-year increase of 72.06%. The company provides AI education solutions of “Tools + content + training + platform + services” to support the implementation of AI education in 27 provinces and cities; In the overseas market, the company’s revenue of this sector accounted for 17.76% in 21 years, with a year-on-year increase of 20.71%. The company has continuously strengthened the construction of foreign distribution channel network, increased the number of cooperative channels more than twice that of previous years, and continuously promoted the localization layout of business.
The company continues to maintain high R & D investment, and the construction of sales system puts short-term pressure on the profit side. As a provider of standardized industrial software, the company’s gross profit margin continues to maintain a high level, with a gross profit margin of 97.87% in 21 years. In terms of various expense rates, the company continued to strengthen the construction of marketing system and strengthen the transformation of direct selling team to key customer mode. The company’s 21-year sales rate reached 39.79% (+ 3.36pct); The company’s 21-year management expense ratio was 9.08% (+ 0.74pct), which was the same as last year; As an R & D driven enterprise, the company always pays attention to R & D investment and R & D team construction, and continuously increases the R & D efforts of 2D / 3dcad and CAE. The product versions continue to iterate and the product performance improves steadily. The R & D expense rate of the company in 21 years is 32.79%, and continues to maintain high R & D investment.
Repurchase demonstrates long-term development confidence, and the localization trend of industrial software remains unchanged for a long time. On April 11, the company issued a repurchase plan, which plans to repurchase shares at a price of 30-60 million yuan, with a repurchase price of no more than 350 yuan / share. The source of repurchase funds is over raised funds. This repurchase plan shows the company’s confidence in long-term development. The threshold of industrial software is very high. The company is expected to break through the neck problem of industrial design software in China. We are optimistic about the development trend of the company as a leader in China’s industrial design field under the wave of localization and legalization for a long time.
Risk tip: the downstream demand is less than expected, and the product R & D is less than expected
Investment suggestion: lower the profit forecast and maintain the “buy” rating. Cut the profit forecast. It is estimated that the operating income in 22-24 years is 854 / 1160 / 1538 million yuan, and the net profit attributable to the parent company in 22-24 years is 241 / 328 / 441 million yuan, corresponding to the P / E ratio of 53.0x/38.9x/28.9x, maintaining the “buy” rating.
