\u3000\u30 Chongqing Baiya Sanitary Products Co.Ltd(003006) 24 Wondershare Technology Group Co.Ltd(300624) )
Event:
The company issued the 2021 annual report and the first quarterly report of 2022. In 2021, the company achieved an operating revenue of RMB 1.029 billion, an increase of 5.39% over the same period of last year, and the net profit attributable to shareholders of listed companies was RMB 278455 million, a decrease of 77.77% over the same period of last year. Excluding the impact of the continuous appreciation of RMB exchange rate on revenue in 2021, the operating revenue increased by 11.40% year-on-year, and the net profit attributable to the parent company could increase by about 32 million yuan.
In the first quarter of the year, the company realized an operating revenue of 263 million yuan, a year-on-year increase of 3.71%; The net profit attributable to the parent company was -04 million yuan, a year-on-year decrease of 112.13%; Net profit deducted from non parent company was -09 million yuan, a year-on-year decrease of 132.70%.
The performance is affected by the exchange rate, subscription transformation and epidemic situation. In the short term, the cloud has achieved initial results
In the whole year of 21 years, the company’s performance was under pressure to a certain extent due to objective reasons: 1. The company quickly promoted the subscription transformation, and the proportion of subscription revenue in the overall sales revenue increased rapidly to about 60%. The subscription system annual payment mode caused the average price of sales orders to decline year-on-year, which affected the revenue growth of the current year to a certain extent; 2. Affected by the global epidemic, the growth rate of market traffic has decreased significantly year-on-year, and the competition for market traffic has become more intense; 3. In 2021, the RMB exchange rate continued to appreciate, which had an adverse impact on the growth of operating revenue. We believe that the transformation of the company’s cloud subscription system has achieved initial results. In the long run, it can provide the company with sustained and stable cash flow and reduce the cost of repeated customer acquisition. The company’s short-term performance is under pressure and does not change the long-term logic.
R & D expenses continue to grow, pay attention to the introduction of elite talents, and innovate products frequently
The company pays attention to the continuous innovation of products and technologies and continuously increases R & D investment. From 2019 to 2021, the R & D expenses of the company increased continuously and rapidly, accounting for 156 million yuan, 219 million yuan and 328 million yuan respectively, accounting for 22.11%, 22.39% and 31.88% of the operating revenue of each period respectively. In order to continuously promote the subscription transformation process and build and improve the subscription support platform, the company’s R & D expenses increased by 110 million year-on-year in 21 years, with a year-on-year increase of 50.09%.
In the 21st year, the company released many new products, such as wanxinglu performance, anirel, PDF reader, wanxingyi repair and so on; At the same time, the major version upgrades of Wanxing meow film, Wanxing recovery experts, Dr. fone, mobiletrans and other products have been completed. We believe that the company’s continuous enrichment of the product matrix in the field of digital creativity and further improvement of product quality and service will further consolidate the company’s comprehensive competitiveness.
Considering that the digital creative field such as video editing is still in the stage of rapid growth, and the company is one of the leading companies in this field, we expect the company’s operating revenue to be 1.338/16.72/2.057 billion yuan and net profit to be 130/1.95/246 million yuan respectively from 2022 to 2024, maintaining the overweight rating.
Risk tip: exchange rate fluctuation risk, intensified market competition and product R & D risk
