\u3000\u3 Guocheng Mining Co.Ltd(000688) 066 Piesat Information Technology Co.Ltd(688066) )
Event: on the evening of April 12, 2022, the company released the performance forecast for the first quarter of 2022. It is estimated that the operating revenue in the first quarter will be 185204 million yuan (+ 164.46% – + 191.62%), the net profit attributable to the parent company will be – 56 million yuan to – 45.9 million yuan (- 19.71% – + 2.75%), and the non net profit deducted will be – 53.84 million yuan to – 43.74 million yuan (- 14.75% – + 6.77%).
The company’s orders grew rapidly, laying a solid foundation for the annual performance. Benefiting from the continuous improvement of the company’s technical level and the continuous improvement of its marketing network, the company signed new orders of 2.17 billion yuan (+ 88.70%) in 2021 and 598 million yuan (+ 269.14%) in 2022q1, laying a solid foundation for Q1 and the annual performance. The reasons for the rapid growth of Q1 revenue of the company include: 1 the company continues to build and improve the four-level marketing system of “headquarters region provincial office city node”, the local market continues to expand, and the revenue of downstream “pie + industry” product line increases rapidly; 2> The company has continuously participated in the information construction in special fields, and has become one of the few units with the ability to undertake overall projects. Its competitiveness has been continuously improved, driving the steady growth of income in special fields.
The national risk survey and related businesses in special fields are in a large-scale stage. 1> According to relevant national requirements, the first national disaster risk census will be fully completed by the end of 2022. The next 1-2 years will be a key period for the implementation of risk census. The company’s business in the pilot stage is progressing smoothly. In addition, the company continues to increase the construction of marketing network and branches, which is also conducive to the company’s continuous acquisition of local orders in the stage of comprehensive risk census; 2> The company announced on December 23, 2021 that it signed a single source procurement contract with a unit, with a contract amount of about 279 million yuan, and the contract performance period is from the signing date to December 31, 2023. If the relevant business can be carried out smoothly, it will have a positive impact on the performance of the company in the next two years. With the improvement of the depth and breadth of pie engine platform application services in special fields, the company’s relevant orders are expected to continue to land.
Real 3D China Construction will usher in the peak of development. In February this year, the notice on comprehensively promoting the construction of real 3D China issued by the general office of the Ministry of natural resources further defined the construction objectives and tasks of real 3D China. The notice clearly points out that by 2025, more than 50% of government decisions, production scheduling and living planning can be completed through online real scene three-dimensional space; By 2035, this proportion needs to reach more than 80%. In terms of construction requirements, the notice also pointed out that the planning plan will be implemented and funds will be guaranteed. According to Taber think tank, it is estimated that the cumulative scale of China’s real 3D market will reach 26 billion to 50 billion by 2025. The company is an important supporting unit for the preparation of the technical outline of real scene 3D China construction. It has leading product and algorithm capabilities and profound accumulation in many industries. It is expected to obtain greater opportunities in real scene 3D China construction.
Profit forecast and investment suggestions
According to the company’s performance forecast for the first quarter of 2022, we predict that the company’s earnings per share from 2021 to 2023 will be 1.07, 1.55 and 2.18 yuan. With reference to the price earnings ratio of 48 times in 2022 given by comparable companies, the corresponding target price is 74.29 yuan, maintaining the buy rating.
Risk tips
Market competition intensifies and business expansion is less than expected.
