\u3000\u30 Guangdong Tengen Industrial Group Co.Ltd(003003) 79 Beijing Tongtech Co.Ltd(300379) )
Event: on April 25, 2022, Beijing Tongtech Co.Ltd(300379) released the first quarterly report of 2022. In the first quarter of 2022, the company achieved operating revenue of 79 million yuan, a year-on-year decrease of 47.30%, net profit attributable to parent company of – 47 million yuan, a year-on-year decrease of 289.49%, net profit not attributable to parent company of – 50 million yuan, a year-on-year decrease of 679.14%. The performance is lower than the market expectation.
Key investment points
The year-on-year base is high, focusing on the long-term growth value of enterprises: under the background of epidemic factors and high base, the signing of contracts and revenue growth of the company in 2022 are affected. The large base of Q1 in 2021 is mainly because Q4 in 2020 is the peak of bidding in the party and government information and innovation market, and part of the revenue is recognized to Q1 in 2021. In 2021, the bidding was released evenly, and there was no similar backlog of unconfirmed orders. Therefore, the Q1 revenue in 2022 decreased year-on-year. From Q1 to 2022, the company has achieved a long-term compound growth of 78% in value.
The increase of senior executives’ holdings shows confidence and promotes the healthy development of the company: on April 25, 2022, the company announced that the actual controller, chairman and general manager Huang Yongjun, and director, deputy general manager, chief financial officer and Secretary of the board of directors Xu Shaopu plan to increase their holdings of the company’s shares within 6 months from May 2022. At present, Huang Yongjun and Xu Shaopu hold 7.89% and 0.12% of the shares of the company respectively, and plan to increase the amount of shares by 27 million yuan to 45 million yuan and 3 million yuan to 5 million yuan respectively, with a total increase of no less than 30 million yuan and no more than 50 million yuan. The shareholding increase plan is based on the company’s confidence in future performance and the long-term investment value of the company’s shares, which is conducive to stabilizing the interests of the capital market and investors and promoting the sustainable and healthy development of the company.
It is expected that there will be a large number of servers in the Xinchuang market, and the company will fully benefit: in 2022, the industry Xinchuang will be fully launched, and the pace of Xinchuang in the financial and telecommunications industry is expected to exceed the market expectations. In particular, the demand for Xinchuang servers will be significantly increased, and the large number of servers will also bring a significant increase in the demand for middleware links Beijing Tongtech Co.Ltd(300379) as the leader of middleware information innovation market, it will benefit the most. In 2022, while maintaining the market advantage of Party and government information innovation, it is expected to achieve further breakthroughs in the financial and telecommunications industries.
Profit forecast and investment rating: Beijing Tongtech Co.Ltd(300379) as a leader in the domestic middleware industry, the product performance is leading and the industry position is stable. We believe that we should not pay too much attention to the performance changes in a single quarter and be optimistic about the growth value of the company for a long time. Based on this, we maintain the forecast of Beijing Tongtech Co.Ltd(300379) 20222024 net profit attributable to the parent company to be RMB 317 / 405 / 535 million, and maintain the “buy” rating.
Risk warning: the promotion of localization policy does not meet expectations; The intensification of industry competition leads to the decline of product prices.
