\u3000\u3 Jointo Energy Investment Co.Ltd.Hebei(000600) 536 China National Software And Service Company Limited(600536) )
Event: the company released its annual report for 2021. In 2021, the company achieved a revenue of 10.352 billion yuan, a year-on-year increase of 39.73%, a net profit attributable to the parent of 76 million yuan, a year-on-year increase of 10.77%, and a net profit not attributable to the parent of 47 million yuan, a year-on-year increase of 16.85%. The performance is in line with market expectations.
Key investment points
The revenue of independent software business increased significantly, and the operating cash flow increased significantly: from the perspective of products, the revenue of independent software products of the company was 1.574 billion yuan in 2021, with a year-on-year increase of 78.18%, mainly due to the gradual recognition of the company’s independent software products by the market, the market share increased continuously, and the gross profit margin was 73.26% (- 1.29pct); The revenue of industrial solution products was 6.435 billion yuan, a year-on-year increase of 3.931 billion yuan, a year-on-year increase of 41.61%, and the gross profit margin was 8.53% (- 1.49 PCT); The revenue of service-oriented business was 2.309 billion yuan, with a year-on-year increase of 23.38% and a gross profit margin of 58.39% (- 2.63pct). In 2021, the R & D expense rate of the company was 17.84% (+ 0.18pct), mainly due to the continuous increase of R & D investment in major projects. In 2021, the company’s operating cash flow was 790 million yuan, with a year-on-year increase of 336.99%, mainly due to the rapid growth of revenue and the acceleration of sales collection.
Qilin software has a brilliant performance and a solid leading position: in 2021, Qilin software achieved a revenue of 1.134 billion yuan, a year-on-year increase of 85%, and a net profit attributable to the parent company of 268 million yuan, a year-on-year increase of 63%. It is the first domestic operating system manufacturer with a revenue of more than 1 billion yuan. Compared with peers with a revenue of 680 million yuan and a net profit of – 238 million yuan in 2021, Kirin software has more advantages in terms of revenue scale and profitability, and maintains a high market share for a long time. In 2021, Kirin operating system V10 made a major breakthrough, the industry position continued to consolidate, and the market position remained ahead.
The market share growth rate of Dameng database is leading in the industry, and its profitability has been greatly improved: Wuhan Dameng achieved a revenue of 743 million yuan in 2021, a year-on-year increase of 74.82%; The net profit was 438 million yuan, a year-on-year increase of 229.32%, and the net interest rate was 59%, a year-on-year increase of 28pct. According to IDC data, Wuhan Dameng’s market share increased by 229% year-on-year in the first half of 2021, ranking first among mainstream manufacturers at home and abroad. Among local manufacturers, Dameng database has the most complete database product series. Dameng series products represented by DM8 have become an important choice for many government units, and have realized the wide and in-depth application of core trading systems in high-end application fields such as finance, telecommunications, social security, provident fund, civil aviation, electric power and so on.
Profit forecast and investment rating: we believe that Kirin software is the national team and leading enterprise in the domestic operating system industry. With the gradual increase of the market scale of Xinchuang, the company’s performance is expected to usher in rapid growth and further improve the market share. Considering the increase of the company’s R & D investment, we lowered the prediction of the company’s net profit attributable to the parent company from 2022 to 2023 to 214 (- 1.27) / 424 (- 41) million yuan, and the net profit attributable to the parent company in 2024 is expected to be 706 million yuan, maintaining the “buy” rating.
Risk tip: the progress of national basic it ecological construction is slow, and the industry competition is intensified.
