\u3000\u3 China Vanke Co.Ltd(000002) 368 Taiji Computer Corporation Limited(002368) )
Matters:
The company announced in its 2021 annual report that in 2021, the operating revenue was 10.505 billion yuan, a year-on-year increase of 23.11%, and the net profit attributable to the parent company was 373 million yuan, a year-on-year increase of 1.19%. The profit distribution plan for 2021 is: it is proposed to allocate 1.94 yuan (including tax) for every 10 shares, and the capital reserve will not be converted into share capital.
Ping An View:
The company’s revenue increased rapidly and the net profit attributable to the parent increased steadily. According to the company’s announcement, the company’s operating revenue in 2021 was 10.505 billion yuan, a year-on-year increase of 23.11%, and the revenue achieved rapid growth. Among them, the revenue from network and information security business was 4.492 billion yuan, a year-on-year increase of 43.89%; The revenue from cloud service business was 698 million yuan, a year-on-year increase of 3.26%; The revenue of smart application and service business was 2.259 billion yuan, a year-on-year increase of 39.94%; The business income of system integration services was 2.905 billion yuan, a year-on-year decrease of 2.78%. The net profit attributable to the parent company was 373 million yuan, a year-on-year increase of 1.19%. The net profit attributable to the parent company increased steadily, and the growth rate was lower than the revenue growth rate, mainly because the company delivered a large number of information and innovation projects in 2021, increased R & D investment and expanded sales channels, which lowered the overall profit level of the company.
The company’s gross profit margin and period expense rate decreased year-on-year, and R & D investment continued to strengthen. The company’s gross profit margin in 2021 was 20.30%, down 2.39 percentage points year-on-year, mainly because the gross profit margin of network and information security business decreased significantly. During 2021, the company’s expense rate was 15.77%, a year-on-year decrease of 1.81 percentage points, of which the management expense rate decreased by 3 percentage points year-on-year and the R & D expense rate increased by 1.06 percentage points year-on-year. In 2021, the company continued to strengthen R & D investment, with R & D investment of 758 million yuan, a year-on-year increase of 26.66%. The net operating cash flow of the company was 739 million yuan, which exceeded the net profit attributable to the parent company by 366 million yuan in the same period. The operating cash flow of the company was in good condition.
The company’s network and information security business revenue increased significantly, and the basic software industry system was gradually improved. In 2021, the large-scale delivery of the company’s Xinchuang project was rapidly promoted, and the revenue of network and information security business increased significantly by 43.89%. The company has strengthened its expansion in the market of Party and government e-government and important industries, signed nearly 3 billion yuan of new credit and innovation projects, and continued to maintain the market leadership. At the same time, the National People’s Congress can further increase the equity of the company and use some of its capital for the acquisition of the company’s software foundation. After the completion of the transaction, the company holds 51.29% equity of Jincang of the National People’s Congress and becomes the second largest shareholder of PWC software, forming a complete basic software industry system covering operating system, database and middleware, and the basic software industry system is becoming more and more perfect. In 2021, the gold warehouse of the National People’s Congress realized an operating revenue of 341 million yuan and a net profit of 312936 million yuan, with a year-on-year increase of 400%, realizing a jump growth. At present, CETC, the actual controller of Taiji Computer Corporation Limited(002368) positioned Taiji Computer Corporation Limited(002368) as the core industry platform of the group company’s Internet information industry, and promoted the resource integration and coordinated development of CLP Taiji and Taiji Computer Corporation Limited(002368) . Backed by the support of controlling shareholders and actual controllers, and benefiting from the development of China’s information innovation industry, the company’s network and information security business income can continue to grow at a high rate in the future.
Profit forecast and investment suggestions: according to the company’s 2021 annual report, we adjusted the performance forecast and estimated that the net profit attributable to the parent company from 2022 to 2024 would be 456 million yuan (the previous value was 610 million yuan), 555 million yuan (the previous value was 768 million yuan), 683 million yuan (New), and EPS would be 0.79 yuan, 0.96 yuan and 1.18 yuan respectively, with PE corresponding to the closing price on April 14 being about 25.4, 20.9 and 16.9 times respectively. In 2021, the company used part of the funds raised by convertible bonds to acquire the minority equity of Jincang of the National People’s Congress and further increase its capital. At the same time, the company participated in and invested in Puhua software. After the completion of the transaction, the company held 51.29% equity of Jincang of the National People’s Congress and became the second largest shareholder of Puhua software, and the basic software industry system of the company was gradually improved. Backed by the support of controlling shareholders and actual controllers, and benefiting from the development of China’s information innovation industry, the company’s network and information security business income can continue to grow rapidly in the future, so as to provide strong impetus for the development of the company. We are optimistic about the future development of the company and maintain the “recommended” rating of the company.
Risk tips: (1) the growth rate of e-government business does not meet expectations. The growth of the market scale of China’s e-government industry is greatly affected by the government’s investment in information construction. If the government’s investment in information construction fluctuates, the growth of the market scale of China’s e-government industry will be lower than expected, and the growth of the company’s e-government business will be lower than expected. (2) The progress of cloud service business promotion did not meet expectations. The company’s Government cloud business has benchmark customers such as Beijing government cloud, Hainan government cloud, Shanxi government cloud and Tianjin government cloud. If the company’s Government cloud business fails to continuously promote the application scope and depth of existing projects, or fails to meet the expectations in the expansion of new projects, there is a risk that the promotion progress of the company’s cloud service business does not meet the expectations. (3) The development of the company’s Xinchuang business did not meet expectations. The company is in a leading position in the overall Xinchuang market. If the company can not keep leading in terms of Xinchuang products in the future, or is lower than expected in terms of market expansion, there is a risk that the development of Xinchuang business of the company will not meet expectations.
