\u3000\u3 Shengda Resources Co.Ltd(000603) 613 Beijing United Information Technology Co.Ltd(603613) )
Event overview
1) on April 22, Beijing United Information Technology Co.Ltd(603613) released the report for the first quarter of 2022. In 2022q1, the operating revenue reached 12.138 billion yuan, an increase of 99.76% year-on-year; The net profit attributable to the parent company was 155 million yuan, a year-on-year increase of 98.85%, exceeding the upper limit of performance forecast; The net profit deducted from non parent company was 145 million yuan, with a year-on-year increase of 90.24%. 2) On the same day, Beijing United Information Technology Co.Ltd(603613) released the 2021 environmental, social and governance report, which comprehensively disclosed and introduced the development and operation of the company from the dimensions of "low-carbon civilization, people-oriented, digital drive and social responsibility".
The performance doubled year-on-year, and Duoduo platform continued to make efforts
From the revenue side, the growth rate of operating revenue in 2022q1 was 99.76%, which basically doubled year-on-year. Relying on the long-term accumulation of industry resources and excellent operation team, Duoduo e-commerce has mode advantages, service capabilities and operation strategies, the company has rapidly expanded its market share, formed a certain first mover advantage, and promoted the rapid growth of transaction volume of Duoduo platforms, so as to achieve high income growth.
In terms of gross profit margin, the gross profit margin in 2022q1 was 3.02%, a year-on-year decrease of 0.31 PCT. As the purchase volume of online commodity trading business increased, the purchase operating cost increased, with a year-on-year increase of 100.39%, slightly higher than the growth rate of operating revenue, resulting in a year-on-year decline in gross profit margin, but it is still in the normal fluctuation range of about 3%.
From the cost side, the sales expenses / R & D expenses / management expenses in 2022q1 increased by 29.42% / 168.76% / 61.19% respectively year-on-year. With the continuous expansion of the company's business scale, the company has increased investment by virtue of the high-quality cash flow brought by performance growth, and various expenses have maintained a synchronous growth. Combined with the growth of revenue, the ratio of sales / R & D / management expenses in 2022q1 was 0.59% / 0.19% / 0.17% respectively, with a year-on-year increase of -0.32 / - 0.04 / + 0.05 PCT respectively. The overall cost control ability of the company is good.
Industrial e-commerce is in the ascendant, and the growth logic continues to be verified
1) continuously improve the penetration rate: according to the disclosure of the company's annual report, the total market scale of the company's business involving categories is more than 4 trillion (incomplete statistics), of which the market scale of Tu Duoduo is more than 1 trillion yuan. The penetration rate of the six Duoduo platforms is still at a low level. As the earliest and most mature e-commerce platform, Tu Duoduo has a penetration rate of 2.09%, an increase of 1.02pct over the previous year. The permeability of Wei (paper) Duoduo / Bo Duoduo / feiduoduo / grain and oil Duoduo is 0.65% / 1.09% / 0.49% / 0.29% respectively. At present, the overall penetration rate of the company is not high, which is far from the ceiling of the industry and has broad growth space.
2) horizontal and vertical category extension: on the one hand, through the strategies of single product breakthrough and supply chain, Guolian continues to expand the category vertically on the existing Duoduo platform. For example, Tuduo already has titanium industry chain, solvent industry chain, resin industry chain, coating ink and other related industries. The titanium industry chain takes titanium dioxide as the core to drive the sales growth of titanium concentrate, rutile, titanium slag, titanium tetrachloride and other single products. On the other hand, the company copied its industrial experience horizontally to more vertical fields, actively promoted the development of new tracks such as xinduoduo, yiduoduo and sanduoduo, and also had reserves and observations in cold chain, new energy vehicles, environmental protection, steel structure and other fields.
Significant results were achieved in cost reduction and efficiency increase, and the implementation of cloud factory was accelerated
According to the disclosure of the annual report, in 2021, Duoduo platform focused on building 100 cloud factories in the way of "digital technology + digital factory", so that the digital factory can be implemented in Hubei, Hebei and other places, open up multiple vertical industries such as titanium industry chain and alcohol industry chain, and realize the digitization of management, production, logistics and energy consumption. According to the investor relations activity record disclosed by the company, at present, the effect of cloud factory in cost reduction, efficiency increase and supply chain optimization is generally obvious. For example, most of the raw material procurement of a titanium chemical cloud factory in Hubei Province participated in more centralized procurement, which significantly reduced the cost. The cost of high titanium slag and rutile was reduced by about 3% - 5%, and the cost of calcined coke was reduced by about 6%. In 2021, 20 cloud factories have been signed, including 5 factories and 1 warehouse. In 2022, 30-40 cloud factories are planned to be signed, and 10-15 are expected to be implemented. As of April 12, 2022, 22 have signed up. In 2021, the cloud factory realized revenue of about 3 million, and the two factories have begun to pay. We believe that the efficiency of cloud factory is gradually released and is expected to contribute to performance growth in the future.
Investment advice
Beijing United Information Technology Co.Ltd(603613) as a leading enterprise of China's industrial B2B e-commerce platform and industrial Internet platform, it has benefited from the development trend of industrial e-commerce and industrial Internet, and its performance has continued to exceed expectations. We expect that the company's operating revenue from 2022 to 2024 will be 67.28/109.9/171.69 billion yuan respectively, and the net profit attributable to the parent company will be 9.5/15.3/2.4 billion yuan respectively, maintaining the investment rating of buy-a. The six-month target price is 138.08 yuan, which is equivalent to 50 times the dynamic market sales rate in 2022.
Risk tip: the trading volume of Duoduo platform is lower than expected; The expansion of the new platform was less than expected.
