\u3000\u3 Shengda Resources Co.Ltd(000603) 927 Sinosoft Co.Ltd(603927) )
Key investment points
Investment Event: the company issued the annual report and profit distribution plan for 2021: the operating income was RMB 6.281 billion, an increase of 8.65% year-on-year; The net profit was 577 million yuan, a year-on-year increase of 21.15%; The net profit excluding non recurring profit and loss was 554 million yuan, a year-on-year increase of 18.73%; A cash dividend of 5.50 yuan (including tax) will be distributed for every 10 shares, and a total of 326.48 million yuan is expected to be distributed.
The business structure of the company was further optimized, and the profitability and human efficiency indicators continued to improve. In 2021, the company's software business realized a revenue of 4.976 billion yuan, an increase of 12.29% over 2020, an increase of 1.12 percentage points over the previous year, and a gross profit margin of 34.18%, an increase of 0.97 percentage points over the previous year; The revenue from system integration and service business was 1.290 billion yuan, down 3.83% from 2020. Because adhering to the "similar reuse" software development concept and the improvement of business structure has driven the improvement of the company's profitability and human efficiency indicators, of which the gross profit margin in 2021 reached 29.52%, an increase of 1.50 percentage points over the previous year; The net interest rate reached 9.19%, an increase of 0.95 percentage points over the previous year; Per capita profit increased from 26200 yuan in 2020 to 29700 yuan in 2021.
Insurance it revenue grew rapidly and customer stickiness was further strengthened. The company has always insisted on enhancing the customer stickiness of insurance companies and establishing long-term cooperative relations with insurance companies. In 2021, the insurance it revenue reached 3.503 billion yuan, with a year-on-year increase of 18.64%, accounting for 55.8% of the revenue; Among them, there are 141 customers with an income of more than 5 million yuan in the insurance it field, an increase of 13 compared with 2020. With the deepening of the "insurance +" strategy, the company achieved 284 million yuan of insurance it related revenue for insurance intermediaries, insurance technology companies, cloud infrastructure manufacturers and customers in other industries, with a year-on-year increase of 88.02%. It is expected to inject new vitality into the growth of the company's insurance it business and main business in the future.
Pay attention to R & D and innovation, and develop "insurance +" strategy and internationalization strategy. In 2021, the company's R & D expenditure was 843 million yuan, an increase of 8.86% over 2020, accounting for 13.42% of revenue. The company continues to strive to develop the "insurance +" strategy and internationalization strategy. The direct business income brought by the implementation of the "insurance +" strategy is 634433 million yuan, with a gross profit margin of 44.55%, covering many fields such as health management, automobile aftermarket service, gas safety and medical commercial insurance, involving system construction and docking, marketing services, automatic underwriting and claim settlement. The company achieved business revenue of 145 million yuan for customers outside the mainland.
Investment suggestion: according to CCID's prediction, the market scale of IT solutions in China's insurance industry will reach 25.039 billion yuan in 2024, with an average annual compound growth rate of 22.6% in 2024. In the future, the insurance it solution market will maintain a high-speed growth trend. As the absolute leader of the industry, the company will continue to benefit. At the same time, the company is carrying out "insurance +" strategy and internationalization strategy, which is expected to accelerate the development of the company. Based on this, we adjusted the revenue and profit forecast of the company in 2022 / 2023 and newly added 2024. It is estimated that the total revenue of the company in 20222024 will be RMB 7.271/83.09/9.337 billion respectively (the value before 2022 and 2023 will be RMB 7.260/8.092 billion), the net profit attributable to the parent company will be RMB 715/8.68/1.041 billion respectively (the value before 2022 and 2023 will be RMB 715857 million), the EPS will be RMB 1.20/1.46/1.75 respectively, and the corresponding PE will be 21 / 17 / 15 times respectively, Maintain the "buy" rating.
Risk tip: the regulatory policy has changed, the pressure of talent competition has intensified, and the expansion of new business is less than expected
