\u3000\u3 China Vanke Co.Ltd(000002) 368 Taiji Computer Corporation Limited(002368) )
Key points
Event: the company released its 2021 annual report, and achieved a revenue of 10.505 billion yuan, a year-on-year increase of 23.11%; The net profit attributable to the parent company was 373 million yuan, a year-on-year increase of 1.19%; The net cash flow from operating activities was 739 million yuan.
The business structure was continuously optimized, and the growth of network security and smart applications was good: in 2021, the revenue of the company's two major businesses, network security and self-control, and smart applications and services, increased rapidly, the proportion of its own software and services in the overall business continued to increase, the business was more product-oriented, service-oriented and platform-based, and the business structure was continuously optimized. From the perspective of products: 1) network security and self controllable business, with a revenue of 4.492 billion yuan, a year-on-year increase of 43.89%. The network information and public security business continued to develop steadily, and the large-scale delivery of Xinchuang project was promoted rapidly. 2) Cloud service business, with a revenue of 698 million yuan, a year-on-year increase of 3.26%. 3) Smart application and service business, with a revenue of 2.259 billion yuan, a year-on-year increase of 39.94%. 4) The revenue of system integration service business was 2.905 billion yuan, a year-on-year decrease of 2.78%, and the proportion of revenue decreased from 52.83% in 2018 to 27.65% in 2021. The growth rate of net profit of the company was lower than that of operating revenue, which was mainly due to the centralized delivery of a large number of credit and innovation projects in 2021, the increase of R & D investment and the expansion of sales channels, which reduced the overall profit level of the company. In 2021, the company's sales expense was 254 million yuan, with a year-on-year increase of 15.05%, mainly due to market expansion and the increase of sales personnel; The annual R & D expenditure was 569 million yuan, a year-on-year increase of 53.08%.
The development strategy of "one body and two wings" has achieved good results and is optimistic about the development prospect of "cloud + digital" business: by strengthening its foundation, the company has built two new engines of core product industrialization and industrial Internet to help the digital transformation and development of government, enterprises and key industries. In 2021, the revenue of the subsidiary NPC Jincang was 341 million yuan and the net profit was 31 million yuan, a year-on-year increase of 400%. Jincang of the National People's Congress continues to take the lead in the market share in the field of Party and government information and innovation, and its share in the localization and upgrading project of "three barrels of oil" reaches Petrochina Company Limited(601857) 100%, CNOOC 75% and 60 Shenzhen Kedali Industry Co.Ltd(002850) % respectively. In December 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, it participated in the investment in PwC software. After the completion of the transaction, the company holds 51.29% equity of Jincang of the National People's Congress and 20% equity of Puhua software. It has built a complete basic software industry system covering operating system, database and middleware, and has become one of the few digital service providers in the whole industry chain in China.
Profit forecast, valuation and rating: considering the fierce market competition and the increase in investment caused by the layout of basic software, the company lowered its revenue forecast for 22-23 years to RMB 12.117/14.095 billion, which was -0.18% / - 1.51% higher than the previous forecast, and increased its revenue forecast for 24 years to RMB 16.388 billion; The forecast of the company's net profit attributable to the parent company for 22-23 years was lowered to 449 / 541 million yuan, which was - 14.96% / - 17.40% compared with the previous forecast, and the forecast of net profit attributable to the parent company for 24 years was 649 million yuan. The corresponding EPS of 22-24 years is 0.77/0.93/1.12 yuan respectively, and the corresponding PE is 26x / 21x / 18x respectively. We are optimistic about the market space brought by Xinchuang and the digital transformation needs of the government, enterprises and key industries, and maintain the "overweight" rating.
Risk tip: the implementation of credit innovation policy is less than expected, the demand of downstream customers is less than expected, and the market competition is intensified
