Business-Intelligence Of Oriental Nations Corporation Ltd(300166) ( Business-Intelligence Of Oriental Nations Corporation Ltd(300166) ) event: the company released the annual report of 2021. The company achieved an operating revenue of 2.47 billion yuan, a year-on-year increase of 18.25%, a net profit attributable to the parent company of 302 million yuan, a year-on-year increase of 0.04%, and a net profit not attributable to the parent company of 266 million yuan, a year-on-year increase of 16.14%. The performance is in line with market expectations.
Key investment points
The rapid growth of customized software business and the increase of personnel scale lead to short-term pressure on cash flow: from the perspective of business, the revenue of customized software development and services in 2021 was 1.907 billion yuan, a year-on-year increase of 25.23%, and the gross profit margin was 41.99%, a year-on-year decrease of 5.93pct. The revenue of system integration business was 290 million yuan, with a year-on-year increase of 11.63%, and the gross profit margin was 24.06%, with a year-on-year decrease of 9.58pct; The revenue of software products was 180 million yuan, a year-on-year decrease of 1.72%, and the gross profit margin was 50.26%, a year-on-year decrease of 10.72 PCT; The revenue of data services was 65 million yuan, a year-on-year decrease of 40.67%, and the gross profit margin was 31.61%, a year-on-year increase of 0.36 PCT; Cloud computing business achieved a revenue of 27 million yuan, a year-on-year increase of 119.45%, and the gross profit margin was 55.04%, a year-on-year decrease of 4.89pct. The net operating cash flow in 2021 was 117 million yuan, a decrease of 73.05% over the same period of the previous year, which was mainly due to the rapid growth of business and personnel scale in 2021 and the corresponding increase in purchase funds and employee compensation.
Key industries made further breakthroughs and set a benchmark in the field of Telecom Finance: the company's customers are mainly concentrated in the telecom industry. In 2021, the revenue from the three major telecom operators was 1.112 billion yuan, accounting for 45.02% of the total revenue, with a year-on-year increase of 19.39%. The company made substantial progress in China Telecom Corporation Limited(601728) marketing service digitization and integrated digital grid business in many provinces, and Liaoning Telecom successfully signed the first cooperative operation order of the provincial branch. In the financial field, the company's revenue in 2021 was 561 million yuan, accounting for 22.71% of the total revenue, with a year-on-year increase of 13.91%. In 2021, the number of new cirrodata deployment nodes doubled. At the same time, the company successively cooperated with China's leading city commercial bank and China's largest trust company in the field of financial big data to create an industry benchmark.
Rapid development of industrial Internet business: the company independently researched and developed Business-Intelligence Of Oriental Nations Corporation Ltd(300166) industrial Internet platform cloudiip, which continued to maintain a leading position in the selection of national cross domain industrial Internet platform by the Ministry of industry and information technology in 2021. At the business operation level, it has achieved profitability. As of the half year of 2021, the proportion of industrial Internet in the total revenue was 17.61%. In recent years, Business-Intelligence Of Oriental Nations Corporation Ltd(300166) 's industrial Internet business is mainly aimed at leading major customers to do industry benchmarking projects. With the replication in the industry in the future, there is still room for improvement in profitability.
Profit forecast and investment rating: during the 14th Five Year Plan period, the country vigorously developed the digital economy. We are optimistic about the company's competitiveness in big data and industrial Internet. Taking into account the impact of the epidemic and the increase in costs, we lowered the forecast of net profit attributable to the parent company from 2022 to 2023 to 361 (- 2.85) / 418 (- 335) million yuan, and it is expected that the net profit attributable to the parent company in 2024 will be 465 million yuan, maintaining the "buy" rating.
Risk warning: epidemic impact; The localization progress is less than expected; Intensified market competition
