\u3000\u3 Guocheng Mining Co.Ltd(000688) 083 Zwsoft Co.Ltd(Guangzhou)(688083) )
Event:
The company released the first quarterly report of 2022. From January to March 2022, the company achieved an operating revenue of 862624 million yuan, an increase of 1.24% over the same period of the previous year; The net profit attributable to the shareholders of the listed company was -197142 million yuan, a decrease of 440.78% over the same period of the previous year; The net profit deducted from non parent company was -368626 million yuan, a year-on-year decrease of 120630%.
The performance pressure in the first quarter was mainly affected by the epidemic and other objective reasons, and the company’s long-term logic remained unchanged
Affected by the cyclical fluctuation of macro economy and the repeated covid-19 epidemic and other external factors, the overall growth of the company’s performance in the first quarter of 2022 was relatively flat. We believe that as a general CAD platform company, the company is greatly affected by the prosperity of downstream manufacturing and other industries. At present, the pressure such as raw material procurement cost of manufacturing industry shows an upward trend, which has an objective pressure on the growth of the company’s revenue; Repeated outbreaks in China have also hindered the promotion and acceptance of the company’s education business; At the same time, the overseas market is also affected by the increase of external risks, the intensification of the conflict between Russia and Ukraine and the foreign exchange rate.
The company is in a period of rapid growth and expansion. At this stage, the cost investment is large, which provides good support for long-term growth
The company has always carried out business layout around the core strategy of all in one CAX, continued to strengthen R & D investment, continuously polished products and improved product quality. From January to March 2022, the number of employees of the company increased by 58% over the same period of last year; Among them, there are 689 R & D personnel, accounting for 46% of the total number of employees of the company. While the number of employees increased significantly, the company continued to optimize and improve the salary and welfare level, implemented the equity incentive plan, and continued to increase the investment in sales promotion and R & D. We believe that the company is currently in the process of growth
During the expansion period, the current strong investment will provide a stable foundation for the company’s long-term benign growth.
The overseas localization service capability has been strengthened. The first BIM cooperation project of “Wukong platform” has landed in the field of civil construction. Japan is the market with the largest market share of industrial software business in the Asia Pacific region. The company has officially registered and established a wholly-owned subsidiary in Japan to further enhance its penetration in the local market. We believe that this is a key step for the company to further explore the international market, and the company’s overseas market will continue to open steadily. With Zwsoft Co.Ltd(Guangzhou)(688083) and Shenzhen Shenzhen Capol International&Associatesco.Ltd(002949) jointly funded the establishment of Zhongwang Zhicheng, we believe that in the future, the company will continue to explore the Wukong plan as a basic platform for cooperation in large-scale construction, transportation, electricity, ships and other fields
Opportunities for landing, business areas and cooperation ecology have been continuously improved.
The company has independent and controllable CAD underlying engine and technical advantages. At present, the valuation is in a low position. We expect the operating revenue to reach RMB 616 / 844 / 1147 million in 20212023, RMB 841 / 1136 / 1522 million in 20222024, and the net profit to reach RMB 180 / 253 / 345 million in 21-23, RMB 234 / 319 / 424 million in 22-24, maintaining the “buy” rating.
Risk warning: the implementation of the policy is less than expected; The progress of localization is less than expected; The market competition intensifies and the R & D progress is less than expected
