\u3000\u30 Guangdong Tengen Industrial Group Co.Ltd(003003) 79 Beijing Tongtech Co.Ltd(300379) )
Event: Beijing Tongtech Co.Ltd(300379) released the annual report of 2021, and the company achieved a revenue of 863 million yuan in 2021, with 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 performance is lower than the market expectation. Key investment points
The basic software business grew steadily and the operating cash flow increased significantly: Q4 achieved a revenue of 471 million yuan, a year-on-year increase of 7.24%, a net profit attributable to the parent company of 210 million yuan, a year-on-year decrease of 10.18%, and a net profit not attributable to the parent company of 199 million yuan, a year-on-year increase of 4.40%. In 2021, the overall gross profit margin was 76.96%, a year-on-year decrease of 2.98 PCT, and the overall net profit attributable to the parent company was 28.74%, a year-on-year decrease of 9.42 PCT. In terms of products, the revenue of basic software products was 333 million yuan, with a year-on-year increase of 23.62% and a gross profit margin of 94.88% (year-on-year -0.12pct); The revenue of safety products was 243 million yuan, with a year-on-year increase of 30.02% and a gross profit margin of 68.38% (year-on-year -5.10 PCT); The revenue of intelligent emergency products was 163 million yuan, with a year-on-year increase of 67.94% and a gross profit margin of 67.58% (year-on-year -13.39 PCT); The digital transformation products of government and enterprises achieved a revenue of 124 million yuan, a year-on-year increase of 42.68% and a gross profit margin of 58.01% (year-on-year + 12.04pct). On the expense side, due to the expansion of the company's sales scale, the sales expense rate increased by 7.45pct year-on-year; The management efficiency was improved, and the management expense rate decreased by 0.95 PCT; The R & D expense rate decreased by 5.11 PCT. In 2021, the net operating cash flow of the company was 2.55 yuan, with a year-on-year increase of 106.95%, mainly due to the increase in cash received from selling goods and providing labor services in 2021.
The increase in the scale of fixed increase is expected to attract more strategic investors: on March 1, 2022, the company resubmitted the application materials for issuance to specific objects. The total amount of funds raised by the company in issuing shares to specific objects this time does not exceed 2.2 billion yuan. It is planned to be used for projects such as the improvement of the excellent ability of Tong series middleware products, the development of next-generation sustainable operation security products based on artificial intelligence, and the replenishment of working capital. Compared with the previous fixed increase, this round of fixed increase will raise the fund-raising amount to 2.2 billion yuan, and modify the previously adopted fixed price issuance to competitive issuance, which can not only meet the capital needs of the company's business scale expansion, but also allow more strategic investors to participate.
The company has fully benefited from the new year of industry innovation. In 2022, the industry's information innovation will be fully launched, and the pace of information innovation in the financial and telecommunications industry is expected to exceed market expectations, especially the demand for information innovation servers will be significantly increased. Therefore, there will be a significant growth in the middleware link, Beijing Tongtech Co.Ltd(300379) as a middleware leader, it will benefit the most. In 2022, while maintaining the market advantages of the party and government, it is expected to make further breakthroughs in the fields of Finance and telecommunications.
Profit forecast and investment rating: Beijing Tongtech Co.Ltd(300379) as a leader in the middleware industry, its product performance is leading. In 2022, the market scale of Party and government information and innovation is expected to grow year-on-year, and the market scale of industry information and innovation is expected to double. We continue to be optimistic about its growth and performance flexibility. However, due to the fierce competition in the industry, we lowered the forecast of Beijing Tongtech Co.Ltd(300379) 20222023 net profit attributable to parent company to 317 (- 4.89) / 405 (- 745) million yuan, and the net profit attributable to parent company to 535 million yuan in 2024, maintaining the "buy" rating.
Risk warning: the promotion of localization policy does not meet expectations; The intensification of industry competition leads to the decline of product prices
