\u3000\u3 Guocheng Mining Co.Ltd(000688) 083 Zwsoft Co.Ltd(Guangzhou)(688083) )
Core view:
The event company released its annual report for 2021, and achieved a revenue of 619 million yuan during the reporting period, with a year-on-year increase of 35.65%; The net profit attributable to the parent company was 182 million yuan, an increase of 50.90% year-on-year; Net profit deducted from non parent company was 99 million yuan, with a year-on-year increase of 4.16%.
The performance is in line with expectations and the cash flow performance is good. The company released its annual report for 2021, and achieved a revenue of 619 million yuan during the reporting period, with a year-on-year increase of 35.65%; The net profit attributable to the parent company was 182 million yuan, an increase of 50.90% year-on-year; The net profit deducted from non parent company was 99 million yuan, with a year-on-year increase of 4.16%, and the performance was in line with expectations. At the end of the reporting period, the company’s net cash flow from operating activities was 187 million yuan, a year-on-year increase of 24.44%, with good performance.
The all in one CAX strategy is progressing smoothly and R & D achievements are emerging. During the reporting period, the company’s R & D expenditure was 203 million yuan, with a year-on-year increase of 34.23%. High R & D consolidated the company’s product competitiveness: in terms of 2dcad, the company released the latest version of Zhongwang cad2022, which improved the stability of the platform, optimized the application in the educational scene, and the Linux version filled the gap in the field of creative CAD. 2dcad realized a revenue of 441 million yuan, a year-on-year increase of 31.39%. In terms of 3dcad, zw3d, an integrated 3dcad / CAM Platform, focuses on overdrive geometric modeling engine technology, parametric design and driving technology based on historical features, and releases China’s first zw3dlinux version supporting domestic software and hardware. 3dcad achieved a revenue of 138 million yuan, a year-on-year increase of 25.47%. In terms of CAE, the company’s three product lines have achieved different degrees of performance improvement, and the revenue generated by product landing and application was 3.8275 million yuan, a year-on-year increase of 619104%.
The effect of four in one marketing strategy is obvious, and the expansion of customers at home and abroad is smooth. The company adopts the four in one marketing strategy of “Ka business unit + regional direct selling + channel + digitization”. The company focuses on direct selling in China and adopts the channel cooperation mode abroad. In terms of domestic business expansion, the education sector progressed smoothly, with a revenue of 150 million yuan, a year-on-year increase of 72.06%. In addition, after adopting the company’s 2D products to replace overseas products, CRRC Zhuzhou further adopted the company’s 3D products to replace ptccreo, indicating that the performance of the company’s products has been gradually improved and recognized by customers. In terms of overseas business expansion, overseas cooperation channels doubled, local localization layout was promoted, and overseas revenue reached 110 million yuan, a year-on-year increase of 20.71%.
Investment suggestion we predict that the company’s EPS from 2022 to 2024 will be 3.88/5.18/6.96, and the corresponding P / E ratio will be 52 / 39 / 29 respectively. As a leading manufacturer in China’s CAD / CAE / CAM field, the company has certain scarcity and card position advantages. The performance of the company’s products continues to improve and further approaches overseas giants. With the continuous promotion of domestic software substitution during the 14th Five Year Plan period, the company is optimistic about the future development of the company and maintains the “recommended” rating.
The risk indicates the risk that the prosperity of downstream industries is lower than expected; Risk of shortage of upstream raw material supply and price rise; Risk of product development falling short of expectations; The risk that the market expansion is less than expected.
