\u3000\u30 Guangdong Tengen Industrial Group Co.Ltd(003003) 78 Digiwin Software Co.Ltd(300378) )
Event:
In the first quarter of the year, the revenue was 326 million, with a year-on-year increase of 13.88%, the net profit attributable to the parent company was – 17 million, with a year-on-year increase of 1.93%, and the net profit attributable to the parent company after deduction was – 23 million, with a year-on-year decrease of 23.81%.
The growth rate in the first quarter may be affected by the epidemic, and the profitability is expected to continue to recover
In the first quarter, the company achieved a year-on-year increase of 13.88% in revenue and a year-on-year increase of 1.93% in net profit attributable to the parent company. In terms of profitability, the company’s gross profit margin increased by 0.35 percentage points year-on-year, and the company’s net profit margin increased by 1.73 percentage points year-on-year. In terms of expense rate, the sales expense rate, management expense rate, R & D expense rate and financial expense rate increased by 1.95/0.72/0.71/0.01 percentage points respectively. We believe that due to the impact of the epidemic, the company’s revenue growth in the first quarter slowed slightly compared with the same period last year. At the same time, the expenses are relatively rigid, which has some impact on the net profit attributable to the parent company. With the end of the epidemic in Shanghai in the future, the company’s profits are expected to continue to recover.
Vigorously develop intelligent manufacturing and actively participate in the formulation of relevant standards
Focusing on the development of market leading manufacturing operation management, the company continues to optimize the functions and applications of manufacturing execution system (MES), advanced scheduling system (APS), quality management system (QMS), digital intelligence factory situation room (FWR) and intelligent manufacturing middle platform (MMP). Through industry mom, the company meets the needs of subdivided industries, improves the overall it + ot solutions related to digital factories, and meets the digital management needs of customers at different stages. At the same time, the company actively participated in the formulation of the group standard of the implementation guide for digital transformation of machinery manufacturing enterprises issued by Shanghai Mechanical Engineering Society. In terms of cloud native SaaS applications, give priority to focusing on the core business scenarios of equipment manufacturing industry and develop new SaaS applications integrating it + ot. We believe that the intelligent manufacturing company is expected to continue to grow at a high speed and its share of revenue is expected to increase.
Investment suggestion: Although the company is affected by the epidemic, with the gradual mitigation and resumption of the epidemic in the future, the relevant businesses of the company will continue to recover. We maintain the 22-24 year profit forecast, with revenue of 2146 / 2596 / 3155 million and net profit of 197 / 250 / 314 million, maintaining the “buy” rating.
Risk tip: the business promotion is not as expected, the risk of the epidemic impacting customer demand, and the risk of deterioration of the market competition pattern
