\u3000\u30 Jinzai Food Group Co.Ltd(003000) 31 Wuxi Boton Technology Co.Ltd(300031) )
Event: in 2021, the company achieved operating revenue of 2.760 billion yuan (YoY + 5%), net profit attributable to parent company of 403 million yuan (yoy-8%), operating revenue of 662 million yuan (yoy-10%) and net profit attributable to parent company of 69 million yuan (yoy-44%) in 2022q1, basically in line with previous expectations. The company’s revenue was greatly affected by the epidemic, and the year-on-year decline in net profit was mainly due to the sharp increase in the company’s R & D expenses.
Comments: in terms of industrial Internet business, the company actively promotes the transformation and development of enterprise intelligence and digitization, continues to increase R & D investment, and expand the landing of the company’s intelligent transmission digital products in the field of smart mines and smart ports. The proportion of revenue of this business continues to increase, and more revenue of products and services will improve the profit margin of this business. In 2021, the operating revenue of the company’s digital conveyor belt exceeded 1 billion yuan, and the Hongshan base, a modern industrial bulk material green transportation intelligent industrial cluster with an investment of 600 million yuan, was put into use, realizing the automation, informatization and intelligence of the product manufacturing process, and becoming the benchmark of the smart factory in the industry. The company invested more than 150 million yuan to build an innovation center and set up Baotong intelligent transportation industry Green Development Research Institute, striving to realize the integration and symbiosis of high-quality development and green development.
In terms of mobile Internet business, we will continue to implement the strategic development layout of globalization, deeply cultivate South Korea, Southeast Asia, Hong Kong, Macao and Taiwan, and constantly expand markets in Europe, America, Japan and China. At the same time, facing the intense competition of games going to sea, the company established a Chinese branch and market center to officially enter the Chinese game market. In 2021, the company continued to integrate the development and operation team, increased the investment in the integrated business of research and operation on the basis of consolidating the distribution capacity of mobile games, and explored a new mode of cooperation with excellent R & D providers through capital operation, strategic cooperation and in-depth customization. In 2021, 72 products are being issued and operated, 16 products are newly operated, and more than 40 products in different languages have been reserved. In the past year, the company continued to increase its R & D investment in the fields related to the global distribution and operation of mobile online games, with more than 20 R & D projects invested.
Profit forecast and investment rating: as the epidemic has a certain negative impact on industrial products and China’s version number policy on the game business, we lowered our previous profit forecast and expected to achieve eps1 from 2022 to 202330 (- 0.43) / 1.54 (- 0.53) yuan, adding an expected 2.02 yuan of EPS in 2024, corresponding to pe12 / 10 / 8x in 20222024. We are optimistic about the rapid growth of revenue and profits brought by the transformation and upgrading of the company’s mobile and industrial Internet, and maintain the “buy” rating.
Risk tip: regional market development is less than expected, self research is less than expected, and policy supervision risk.
