\u3000\u30 Guangdong Tengen Industrial Group Co.Ltd(003003) 79 Beijing Tongtech Co.Ltd(300379) )
Event:
The annual report of 2021 was released on the evening of April 14, and the annual operating revenue was 863 million yuan, a year-on-year increase of 34.80%; The net profit attributable to the parent company was 248 million yuan, a year-on-year increase of 1.53%; Net profit deducted from non parent company was 221 million yuan, with a year-on-year increase of 31.89%; The basic earnings per share is 0.55 yuan, and it is proposed to distribute a cash dividend of 0.9 yuan (including tax) for every 10 shares. In the early stage, we predicted that the revenue and net profit attributable to the parent company were RMB 1.012391 billion respectively, and the performance was lower than expected.
Comments:
The profit margin decreased and the cost expenditure increased to pave the way for the long term
In 2021, the gross profit margin of sales was 76.96%, a year-on-year decrease of 2.98pct, and the net profit margin of sales was 28.74%, a year-on-year decrease of 9.42pct. At the same time, due to the rapid growth of the sales force, the sales expenses reached 185 million yuan, a year-on-year increase of 106.68%, the management expenses increased by 23.35%, and the R & D expenses increased by 9.57%. Finally, the profit growth lagged significantly behind the revenue growth. We expect that per capita performance will continue to improve in the future.
The performance of information and innovation industry is different, and the situation of military industry, finance and telecommunications is good
From the perspective of products, the revenue of middleware business with high gross profit in 2021 was 333 million yuan, a year-on-year increase of 23.62%, which did not meet the expectation. The revenue of network security business was 243 million yuan, a year-on-year increase of 30.02%, and the revenue of intelligent emergency business was 163 million yuan, a year-on-year increase of 67.94%. From the perspective of industry, the military industry, finance and telecommunications industries still maintain a good development trend, but the growth rate of the government slows down, and public utilities such as energy, transportation and education show negative growth to varying degrees.
Profit forecast and valuation
Taking into account the termination of the company’s fixed price increase in the early stage and the intensification of competition in the industry, we adjusted the revenue of 202223 to be 1.129/1.124 billion yuan (the original value was 1.477 billion yuan and 2.059 billion yuan), the net profit attributable to the parent company to be 272337 million yuan (the original value was 593 million yuan and 828 million yuan), and increased the 24-year profit forecast revenue to be 1.783 billion yuan, the net profit to be 387 million yuan, the EPS to be 0.59/0.74/0.84 yuan / share, and the corresponding PE to be 33x/27x/23x respectively. Downgraded to “overweight” rating.
Risk tips
1. The implementation progress of Xinchuang did not meet expectations; 2. Industry competition intensifies; 3. Impairment of goodwill due to failure of information security and emergency command business to meet expectations; 4. Technological change leads to the backwardness of the company’s products and solutions.
