\u3000\u3000 Beijing United Information Technology Co.Ltd(603613) (603613)
Performance review
On January 11, 2022, the company issued the announcement of annual performance increase in 2021. The company expects to achieve revenue of 37.1-37.4 billion yuan in 2021, with a year-on-year increase of 116.23% to 117.98%; The net profit attributable to the parent company was RMB 571-576 million, with a year-on-year increase of 87.37% to 89.01%; Deduct non net profit of 523 million yuan to 528 million yuan, with a year-on-year increase of 95.55% to 97.42%. The company’s predicted net profit attributable to the parent company exceeded our previous profit forecast.
Business analysis
In 2021q4, the growth center of forecast revenue is 93.3%, and the growth center of net profit attributable to parent company is 86.4%. According to the annual performance forecast, the company realized a revenue of 13.63 ~ 13.93 billion yuan in 2021q4, a year-on-year increase of + 91.2% ~ 95.4%; The net profit attributable to the parent company was 232 ~ 237 million yuan, a year-on-year increase of + 84.4% ~ 88.3%; Deduct non net profit of RMB 214 ~ 222 million, a year-on-year increase of + 106.6% ~ 114.4%. The main reason for the high performance increase of the company is that its “Duoduo” industrial products e-commerce platforms vigorously implement active and efficient upstream and downstream strategies, and the transaction volume increases rapidly.
It is estimated that the net profit rate attributable to parent company in 2021q4 is higher than that in 2021q1-3, and the profit margin exceeds our expectations. According to the prediction of the forecast center, the net interest rate attributable to the parent company in 2021q4 is 1.70%, with a year-on-year increase of -0.06pct. In the case of continuously transferring profits to develop new categories and deepen existing customers, the company’s parent net interest rate remains stable, which means that the company may have a certain industry voice in some main categories. The net interest rate attributable to the parent company in 2021q4 is significantly higher than 1.44% in 2021q1-3. We believe that this is mainly due to the early withdrawal of some expenses of the company in 2021q1-3.
It is optimistic that the penetration rate of e-commerce of industrial products will continue to improve. According to the calculation of iResearch consulting, the penetration rate of e-commerce of China’s industrial products in 2020 is only about 4.5%; The penetration rate of e-commerce of industrial products is expected to reach 13.2% in 2025. We believe that the increase in penetration will be the core growth driver of the e-commerce industry of industrial products in the future. It is a general trend that the purchase and marketing links of industrial products enterprises gradually shift from traditional distribution channels to industrial products e-commerce, which is conducive to simplifying processes, reducing costs and increasing efficiency.
Profit forecast and investment rating: we believe that the penetration rate of industrial e-commerce has great room to improve and is in the stage of rapid growth. The major “Duoduo” industrial e-commerce platforms of Beijing United Information Technology Co.Ltd(603613) are expected to continue to drive the company’s performance growth. We adjusted the company’s net profit attributable to the parent company in 2021-23 from RMB 560 / 9.4 / 1.54 billion to RMB 570 / 9.3 / 1.48 billion, with a year-on-year growth rate of 88% / 62% / 60% respectively. The closing price on January 11 corresponds to the PE of 2021-23, which is 65x / 40x / 25X respectively, maintaining the “buy” rating.
Risk tips: the price of industrial products fluctuates, the new platform is less than expected, the loss of users, the promotion of industrial Internet development strategy is less than expected, and the industry competition is intensified
