\u3000\u3 China Vanke Co.Ltd(000002) 987 Northking Information Technology Co.Ltd(002987) )
Event:
The company issued the 2021 annual report and the first quarterly report of 2022. In 2021, the company achieved an operating revenue of 3.054 billion yuan, a year-on-year increase of 33.22%; The net profit attributable to the parent company was 231 million yuan, a year-on-year decrease of 16.47%; Net profit deducted from non parent company was 209 million yuan, a year-on-year decrease of 18.86%.
In the first quarter of 2012, the company achieved an operating revenue of 833 million yuan, an increase of 20.12% year-on-year; The net profit attributable to the parent company was 24 million yuan, a year-on-year decrease of 53.67%; Net profit deducted from non parent company was 21 million yuan, a year-on-year decrease of 55.97%.
The revenue growth is in line with expectations, the business structure continues to be optimized, and there are sufficient orders on hand to stabilize future growth
The company’s revenue growth is in line with expectations. In the whole year of 21 years, the company’s information technology service business grew rapidly, realizing an operating revenue of 1.826 billion yuan, a year-on-year increase of 47.59%, and its proportion in the company’s total revenue increased to 59.78% from 53.96% in the same period last year; Among them, the revenue from software products and solutions was 492 million yuan, a year-on-year increase of 76.64%, accounting for 16.12% of the company’s revenue. We believe that the company will continue to vigorously develop high value-added business, and the business structure will be continuously optimized.
At present, the company has sufficient orders on hand. By the end of March, the contract amount of information technology services has been signed is 4.573 billion yuan, and some contract periods are two to three years. We believe that the company’s abundant orders will lay a good foundation for future growth. With the mitigation of the epidemic, more customer demand will be released gradually.
Increase R & D investment, build high barriers, and actively reserve talents to meet new opportunities
In recent years, the company has continuously increased its R & D investment in general technologies such as artificial intelligence, blockchain, cloud computing, privacy computing and big data, as well as innovative products and solutions. In 2021, the company’s R & D expenses were 281 million yuan, accounting for 9.20% of revenue, with a year-on-year increase of 45.69%.
At the same time, the number of personnel of the company also increased further in 2021. The number of people in the information technology service sector increased from 6900 at the end of 2020 to 8472 at the end of 2021, with a year-on-year increase of 22.78%. We believe that increasing R & D investment will help the company further build its own barriers, and the company’s measures to improve per capita salary and strengthen talent recruitment will help the company meet new opportunities in financial it in the future.
Considering the high downstream boom of the financial IT industry and the company is one of the leading companies in this field, the buy rating is maintained. Due to the dual impact of exchange rate fluctuations and epidemic factors, and in the process of business structure transformation, the company has appropriately lowered its profit forecast: we will reduce the company’s revenue from 2022 to 2023 from 4.227/5.563 billion yuan to 4.001/5.201 billion yuan, and the revenue is expected to be 6.71 billion yuan in 2024; The net profit from 2022 to 2023 will be reduced from 403 / 556 million yuan to 380 / 508 million yuan. The net profit in 2024 is expected to be 625 million yuan, maintaining the buy rating.
Risk tips: macroeconomic and policy risks, rising human costs, and changes in the competitive environment
