\u3000\u3 China Vanke Co.Ltd(000002) 368 Taiji Computer Corporation Limited(002368) )
Event: the company released its 2021 annual report. The company achieved an operating revenue of 10.505 billion yuan, a year-on-year increase of 23.11%, a net profit attributable to the parent of 373 million yuan, a year-on-year increase of 1.19%, and a net profit not attributable to the parent of 281 million yuan, a year-on-year decrease of 6.33%. The performance is basically in line with expectations.
Key investment points
Network security, self-control and other businesses grew rapidly, and the business structure was optimized: in 2021, the company’s network security and self-control business achieved a revenue of 4.492 billion yuan, a year-on-year increase of 43.89%, mainly due to the rapid promotion of large-scale delivery of Xinchuang projects. The company also signed nearly 3 billion yuan of Xinchuang projects, which continued to maintain the market leadership. The smart application and service business achieved a revenue of 2.259 billion yuan, with a year-on-year increase of 39.94%. Relying on the integrated service model of “cloud + number + application + ecology”, the company promoted the commercialization, service and platform of business, and the gross profit margin increased to 40.59%. In the field of digital government, the company won the new bid for the digital projects of the central government and provinces and cities such as Beijing, Hainan, Shaanxi and Qinghai, The integrated government service platform solution ranks second in China with a market share of 16.8%. The proportion of network security and its own software and services in the overall business has increased to 70.91%, and the business structure has been continuously optimized.
Make efforts to improve the independent product system of the basic software, and the performance of the National People’s Congress Jincang database is bright: in 2021, the company acquired the equity of the National People’s Congress Jincang and further increased its capital. At the same time, it participated in Puhua software, holding 51.29% and 22.22% of the equity of the National People’s Congress Jincang and Puhua software, respectively, as its first and second largest shareholders. The company has built a complete basic software industry system including Puhua operating system, Jincang database and Kingdee middleware, and formed a perfect independent product system together with Huidian office system. It is one of the few digital service providers in the whole industry chain in China. Benefiting from the development of the information and innovation industry, the gold warehouse of the National People’s Congress realized a revenue of 341 million yuan and a net profit of 31 million yuan in 2021, with a year-on-year increase of 400%. Jincang of the National People’s Congress has maintained a leading market share in the field of party, government, information technology and innovation. In the localization and upgrading projects of PetroChina, CNOOC and Sinopec, the market share has reached 100%, 75% and 50% respectively.
CETC resources support and clarify the strategic positioning and direction of the company: CETC positions Taiji Computer Corporation Limited(002368) as the core industry platform of the group company’s network and information industry, and promotes the resource integration and coordinated development of CLP Taiji and Taiji Computer Corporation Limited(002368) . The company has received strong support from CETC and CLP Taiji in policy, capital, industrial resources and market. Under the overall planning of the group, it has become the main platform for the basic software industry of CETC. On this basis, the company upgraded the development strategy of “one body and two wings”, focused on key industries and fields to build a strong foundation (“one body”), built two engines of core product industrialization and platform operation services (“two wings”), and promoted the high-quality development of the company.
Profit forecast and investment rating: considering the rapid promotion of the company’s product transformation, the company will continue to usher in large-scale opportunities for information and innovation in 2022, and will be supported by resources of CETC, with a view to building a “100 billion market value” enterprise as soon as possible. However, due to the company’s increasing R & D investment and product innovation, we lowered the company’s net profit attributable to the parent company from 2022 to 2023 to 406 (- 0.52) / 449 (- 58) million yuan, and the net profit attributable to the parent company in 2024 is expected to be 500 million yuan, maintaining the “buy” rating.
Risk warning: the promotion of Xinchuang business does not meet expectations; The market share in each segment is less than expected.
