\u3000\u3 China Vanke Co.Ltd(000002) 368 Taiji Computer Corporation Limited(002368) )
[key points of investment]
Outstanding performance and rapid growth of revenue. The company released its 2021 annual report. In 2021, it achieved a revenue of 10.505 billion yuan, a year-on-year increase of 23.11%. The net profit attributable to the parent company was 373 million yuan, a year-on-year increase of 1.19%, and the deduction of non net profit was 281 million yuan, a year-on-year decrease of 6.33%. Net operating cash flow was 739 million yuan, a year-on-year decrease of 31.80%. 21q4 achieved a revenue of 3.502 billion yuan in a single quarter, a year-on-year increase of – 8.03%. In Q4, the net profit attributable to the parent company and the net profit deducted from non net profit in a single quarter were 287 million yuan and 210 million yuan respectively.
High growth in the government sector and proper cost control. The gross profit margin in 2021 was 20.30%, with a year-on-year increase of -2.39pct. In terms of product structure, the company’s network and information security products achieved a revenue of 4.492 billion yuan (+ 43.89%), cloud service products achieved a revenue of 698 million yuan (+ 3.26%), smart applications and services achieved a revenue of 2.259 billion yuan (+ 39.94%), system integration services achieved a revenue of 2.905 billion yuan (- 2.78%), and the proportion of its own software and services increased. The revenue from the government industry was 5.629 billion yuan (+ 48.11%), accounting for 53.59%. The market revenue of public institutions was 798million yuan (-2.90%), and that of enterprises was 3.803 billion yuan (+12.63%). The government affairs industry has become an important engine to drive the overall performance growth of the company. The annual sales expenses were 254 million yuan (+ 15.05%), administrative expenses were 731 million yuan (- 13.97%), R & D expenses were 569 million yuan (+ 53.08%), and financial expenses were 103 million yuan (+ 79.09%).
Acquire the gold warehouse of the National People’s Congress and strengthen the layout of basic software. During the reporting period, the company achieved absolute control over the Jincang of the National People’s Congress, participated in and invested in Puhua software, formed an independent product system including Puhua operating system, Jincang database, Kingdee middleware and huidianban software, strengthened the layout of basic software, continuously improved the independent and controllable industrial ecosystem, and enhanced its competitiveness in the information and innovation industry. The company has actively expanded the market of Party and government e-government and important industries, with nearly 3 billion yuan of newly signed Xinchuang projects. In 2021, the gold warehouse of the National People’s Congress realized a revenue of 341 million yuan and a net profit of 312936 million yuan, a year-on-year increase of 400%. The online real-time communication system of the people’s Congress of the people’s Republic of China has been successfully launched, accounting for the first success rate in the field of online support of the people’s Congress of the people’s Republic of China; Complete the migration of hundreds of business systems for a single customer in the financial field; In the localization and upgrading project of “three barrels of oil”, the market share reached Petrochina Company Limited(601857) 100%, CNOOC 75% and 60 Shenzhen Kedali Industry Co.Ltd(002850) % respectively.
Lead the digital economy era and help digital transformation. Relying on the integrated service mode of “cloud + number + application + ecology” and government cloud, the company has helped to build a digital government. It has won the bid for the second phase of the central government portal project, the emergency management science and technology resources and decision support platform of the Information Research Institute of the emergency management department, Beijing big data platform, Hainan integrated government service platform and other projects. According to IDC data, The company’s integrated government service platform solution ranks second in China with a market share of 16.8%. With the deepening of the construction of digital government, the company is expected to deeply benefit from the perfect domestic software layout, scarce shareholder background and in-depth industry understanding.
[investment suggestions]
The company is the backbone of China’s domestic basic software. It is expected to deeply benefit from the perfect domestic software layout, scarce shareholder background and in-depth industry understanding, and usher in a take-off in the era of digital economy. It is estimated that from 2022 to 2024, the operating revenue of the company will be RMB 12.648/15.102/17.639 billion respectively, the net profit attributable to the parent company will be RMB 415514/653 million respectively, the EPS will be RMB 0.72/0.89/1.13 respectively, and the corresponding PE will be 29 / 23 / 18 times respectively, maintaining the “overweight” rating.
[risk tips]
Macroeconomic fluctuation risk;
The investment of Xinchuang is less than the expected risk;
The competition in the database industry intensifies the risk.
