\u3000\u3 China Vanke Co.Ltd(000002) 368 Taiji Computer Corporation Limited(002368) )
The company released its annual report for 2021, which realized revenue of 10.5 billion yuan (+ 23.1%), net profit attributable to parent company of 370 million yuan (+ 1.2%), and deduction of non net profit of 280 million yuan (- 6.3%). The performance met expectations and maintained the buy rating.
Key points supporting rating
Smart applications have grown rapidly and performed well. The quarterly fluctuation of revenue weakened, and Q4 revenue was 3.5 billion (- 8.0%, with a high base last year). The revenue of network security business increased significantly by 44% to 4.49 billion. Relying on the integrated service mode of “cloud + number + application + ecology”, the revenue of smart application and service business increased by 40% to 2.26 billion, exceeding market expectations; The further improvement of productization drove the gross profit margin to 40.6% (+ 3.7pct). Cloud services increased slightly by 3.3% to 700 million. The proportion of system integration business (revenue of 2.9 billion, – 2.8%) decreased from 35.0% to 27.6%. The sales and management expense rate has been reduced from 14.9% to 9.4% for three years; The R & D expense ratio increased from 2.9% to 5.4%.
Digital government welcomes top-level policy support. On April 19, 2022, the meeting of the central deep reform commission deliberated and adopted the guiding opinions on strengthening the construction of digital government, pointing out that it is necessary to build a ubiquitous, intelligent, convenient, fair and inclusive digital service system. With the support of policies, the market space of digital government is expected to be further expanded. The company has won the new provincial and ministerial digital government projects in Beijing, Hainan and other provinces and cities by creating “one network for all”, “one network for unified management” and integrated social management product system, and the market share of the integrated government service platform solution is in the top position.
The gold warehouse of the National People’s Congress has developed rapidly. The company increased the shareholding ratio of NPC Jincang to 51.3% (in addition, it became the second largest shareholder of PWC software), and built a basic software industry system covering operating system, database and middleware. The gold warehouse of the National People’s Congress took the lead in the market share of the party and government and the petroleum industry, with a revenue of 340 million yuan (+ 41.1%) and a net profit of about 31.29 million yuan (+ 400%).
Valuation
It is estimated that the net profit from 2022 to 2024 will be 450 million yuan, 650 million yuan and 900 million yuan, and EPS will be 0.78 yuan, 1.12 yuan and 1.55 yuan (due to the decline of gross profit margin of integration and network security and the growth of R & D expense rate, which is revised down by 32 ~ 40% higher than expected). The corresponding valuations are 24x, 17x and 12x, which remain low and maintain the buy rating.
Main risks of rating
The epidemic affects income growth; Individual gross profit margin continued to decline.
