\u3000\u3 Guocheng Mining Co.Ltd(000688) 083 Zwsoft Co.Ltd(Guangzhou)(688083) )
Event: this week, the company successively released the annual report of 2021 and the first quarterly report of 2022. In 2021, the company realized an operating revenue of 619 million yuan (+ 35.65%), a net profit attributable to the parent company of 182 million yuan (+ 50.89%), and a net profit of 99 million yuan (+ 4.16%). In the first quarter of 2022, the company realized an operating revenue of 86 million (+ 1.24%).
In 2021, the company achieved steady and rapid growth in revenue and continuous improvement in product strength. In 2021, the company achieved a revenue of 619 million yuan (+ 35.65%), with a growth rate higher than the target value set by equity incentive in 2021. 1> In the field of 2dcad, the company continued to improve product performance, further developed sales channels, and achieved an annual revenue of 441 million yuan (+ 31.39%); 2> In the field of 3dcad, zw3d has made great improvements in modeling ability, design efficiency and professional modules. The company’s 3D products achieved an annual revenue of 138 million yuan (+ 25.47%); 3> In the field of CAE, the company continued to polish its existing products, and made breakthroughs in core technologies in the pre-processing and post-processing platform and structural simulation software. The annual income of CAE products reached 3.83 million yuan, a breakthrough in revenue compared with 2020. In the first quarter of 2022, the company achieved a revenue of 86 million (+ 1.24%), mainly due to the impact of external factors such as macroeconomic cyclical fluctuations and repeated epidemics. The negative impact brought by uncertain factors is expected to continue to improve in the future.
The company continued to increase sales and R & D investment, and its cash flow was healthy. In 2021, the company’s gross profit margin was 97.87%, which remained at a high level for a long time and its profitability was stable. The company continued to increase sales and R & D Investment: 1 the company continued to strengthen the construction of marketing system and strengthen the transformation of direct selling team to key customer mode. The annual sales expense reached 267 million yuan (+ 47.09%), and the sales expense rate was 43.15% (+ 3.36pct); 2> The company strengthened the continuous iteration of existing products and core technology research, and the R & D team continued to grow. By the end of 2021, there were 645 R & D personnel (+ 40.83%), the annual R & D cost reached 203 million yuan (+ 34.23%), and the R & D cost rate was 32.79% (- 0.35pct), which remained at a high level. In 2021, the net operating cash flow of the company was 187 million yuan (+ 24.44%), reflecting the results of the company’s strategies of continuously improving products, strengthening multi-form and multi-channel content marketing and advertising, and strengthening the effectiveness of the sales collection policy of key customers.
The company continued to deepen the all in one CAX strategy and accelerate the layout of Xinchuang products. On the basis of the existing 2D and 3D products, the company further increased its R & D efforts, carried out technical upgrading and key technical problems of the products under the guidance of Lighthouse customers, quickly narrowed the gap with world-class CAX products, and further expanded its leading position in domestic industrial software. At the same time, the company will also layout cloud 2D, cloud 3D and PLM product lines to improve the layout of CAX technology. In addition, the company actively tackles the technical problems of the third-party technology stuck in the field of information and innovation. Zhongwang CAD independently developed by the company has fully supported the software and hardware environment of domestic complete machine, operating system, CPU, GPU, peripherals and so on. In 2021, the company officially released Zhongwang CAD 2022 Linux version, Zhongwang CAD machinery 2022linux version, Zhongwang CAD architecture 2022 Linux version, Zhongwang 3d2022linux version, etc., which helped Xinchuang enterprises smoothly realize the localization transformation of software and hardware, and led the road of China’s Xinchuang ecological construction.
Profit forecast and investment suggestions
According to the company’s annual report of 2021 and the first quarterly report of 2022, we believe that the company’s business will maintain steady growth. It is predicted that the company’s earnings per share will be 3.83, 5.04 and 6.70 yuan from 2022 to 2024 (the original forecast of 22-23 years is 3.85 and 5.17 yuan, adjusting the revenue growth rate and various expenses). With reference to the 66 times P / E ratio given by comparable companies in 2022, the corresponding target price is 252.64 yuan, maintaining the buy rating.
Risk tips
The progress of localization is less than expected, the progress of legalization is less than expected, the progress of R & D is less than expected, and the market competition is intensified.
