New point software (688232)
Event: on April 12, 2022, the company released the annual report of 2021.
The performance is in line with market expectations, and the revenue and profit maintain steady growth. According to the company’s announcement, the company’s annual revenue in 2021 reached 2.794 billion yuan, a year-on-year increase of 31.56%; In 2021, the net profit attributable to the parent company reached 504 million yuan, with a year-on-year increase of 22.87%; In 2021, the net profit deducted from non parent company reached 497 million yuan, with a year-on-year increase of 26.47%. The overall performance was in line with market expectations.
With the troika of “recruitment + government + construction”, the transformation of enterprise SaaS mode is worth looking forward to. The company’s core business includes three parts: smart recruitment, smart government and digital architecture. Among them, in the field of smart bidding and procurement, the revenue was 1.063 billion yuan in 2021, with a year-on-year increase of 39.91%; In the field of smart government, the revenue was 1.333 billion yuan, a year-on-year increase of 26.23%; In the field of digital architecture, the revenue was 339 million yuan, a year-on-year increase of 13.92%. In the field of smart bidding, the company has completed Air China Limited(601111) procurement management platform project, Shanghai Baohua smart bidding sharing platform function expansion and optimization project and other enterprise side bidding and procurement projects. By the end of 2021, the company had undertaken to build more than 40 enterprise bidding and procurement platforms for large central and state-owned enterprises. The company further increased the investment in SaaS based bidding and procurement platform. During the reporting period, the number of new zones opened by SaaS based bidding and procurement platform increased by more than 50% year-on-year, and the trading volume increased by 85% year-on-year. In terms of bidder services, the company’s standard certificate products have been successfully promoted in 21 provinces. The number of access zones has increased by more than 3.5 times year-on-year, the number of registered users has increased by more than 10 times year-on-year, and the actual number of licenses has increased by more than 3.5 times year-on-year. According to the company’s announcement, the platform operation in the field of smart bidding and procurement increased by 67.10% year-on-year. We believe that the transformation of the company’s smart bidding business enterprise level SaaS service has development potential.
The tide of digital economy is sweeping, and the national unified market is expected to help consolidate the leading position of the company. According to the official website of qiushi.com, the general secretary published an important article proposing to continuously strengthen, optimize and expand China’s digital economy. Previously, the State Council issued the 14th five year plan for digital economy development on the evening of January 12, 2022, which defined the objectives, path, direction and system construction of digital economy development during the 14th Five Year Plan period, and proposed the goal of increasing the proportion of core industries of digital economy to 10%. On the other hand, the opinions of the CPC Central Committee and the State Council on accelerating the construction of a national unified market was officially released on April 10, 2022. The opinions clearly speed up the establishment of a national unified market system and rules, break local protection and market segmentation, and speed up the construction of an efficient, standardized, fair competition and fully open national unified market. We believe that as a leading enterprise in the field of smart government and smart recruitment, the company is expected to fully benefit from the east wind of the policy.
Investment suggestion: the company is a high-quality enterprise deeply engaged in the field of government enterprise informatization. Its high profitability shows its excellent productization ability and management level. The recruitment business is expected to gradually realize SaaS transformation. It is estimated that the company’s EPS from 2022 to 2024 will be 1.99/2.65/3.52 yuan respectively. At present, the corresponding PE of market value is 18x, 13X and 10x respectively, maintaining the “recommended” rating.
Risk tip: the expansion of products and related businesses is less than expected, and the intensification of industry competition leads to the decline of gross profit margin.
