\u3000\u30 Chongqing Baiya Sanitary Products Co.Ltd(003006) 24 Wondershare Technology Group Co.Ltd(300624) )
Event:
The company issued the annual report of 2021 and the first quarter report of 2022 after the closing on April 22, 2022.
Comments:
Deeply cultivate the main track of video creative software and comprehensively promote the SaaS transformation and upgrading of various businesses
In 2021, the company achieved an operating revenue of 1.029 billion yuan, an increase of 5.39% year-on-year, and an increase of 11.40% year-on-year after excluding the impact of the continuous appreciation of RMB exchange rate. Among them, subscription revenue accounts for nearly 60% of the total revenue, and renewal revenue accounts for 24.3% of the total revenue. SaaS transformation has achieved initial results. The annual (quarterly and monthly) purchase fee of subscribers is lower than the software license price, which has an adverse impact on the growth of the company’s operating revenue. By product: the revenue of video creativity is 583 million yuan, that of drawing creativity is 103 million yuan, that of document creativity is 102 million yuan, and that of practical tools is 238 million yuan. In terms of regions, China’s market revenue accounts for about 12%, and the sales revenue of South Korea, India and Brazil increased by about 314%, 169% and 44% respectively. The impact of overseas single market on the company’s revenue is decreasing.
Strengthen product incubation and exploration of cutting-edge technologies to lay a solid foundation for the long-term development of the company
In 2021, the company realized a net profit attributable to the parent company of 278455 million yuan, a year-on-year decrease of 77.77%. After excluding the impact of the continuous appreciation of RMB exchange rate, the net profit attributable to the parent company can increase by about 32 million yuan. In terms of R & D, the company’s R & D expenses were 328 million yuan, a year-on-year increase of 50.09%. The company successfully incubated new products such as Wanxing Luyan, anirel, PDF reader and Wanxing Yixiu, enriched the company’s product matrix, and completed the large-scale version upgrading of Wanxing meow film, Wanxing recovery expert, Dr. fone, mobiletrans and other products, so as to further improve product quality and service and consolidate the company’s comprehensive competitiveness. In terms of marketing, the company’s sales expense was 482 million yuan, a year-on-year increase of 9.44%. The company continued to strengthen the construction of global marketing platform. The number of new agents increased by 243% year-on-year, and the sales revenue of global government and enterprises increased by 64% year-on-year.
22q1 company continued to deepen the transformation of SaaS, and the proportion of subscription revenue increased to 62.24%
In the first quarter of 2022, the company realized an operating revenue of 263 million yuan, a year-on-year increase of 3.71%, and the subscription revenue accounted for 62.24%. The core product wondersharefilmora released a new version of V11, and the sales revenue increased by about 9.61% month on month. The net profit attributable to the parent company was a loss of 3.5574 million yuan, mainly due to: 1) the company continued to carry out research and development of new technologies and products, and the research and development cost was 81 million yuan, a year-on-year increase of 26.87%; 2) Due to the intensification of market competition and the increase of flow cost, the company’s sales expense was 130 million yuan, with a year-on-year increase of 21.94%; 3) The annual salary of employees is about 17 million yuan, with a year-on-year increase of 87.22%; 4) Last year, the company issued convertible bonds, resulting in a year-on-year increase in financial expenses of 4.3596 million yuan.
Profit forecast and investment suggestions
The company is the world’s leading digital creative enabler of the new generation, with broad development space. It is predicted that the operating revenue of the company from 2022 to 2024 will be 1.307, 1.614 and 1.948 billion yuan, the net profit attributable to the parent company will be 123, 183 and 241 million yuan, the EPS will be 0.95, 1.41 and 1.86 yuan / share, and the corresponding PE will be 32.02, 21.61 and 16.36 times. At present, the pettm of the computer (Shenwan) index is 38.8 times. Considering that the digital creative track is in a period of rapid development, the company’s competitive advantages in products and marketing, Hongmeng ecology is expected to accelerate the development of the company’s mobile end products and other factors, the company is given 45 times the target PE in 2022, and the corresponding target price is 42.75 yuan. Maintain the “buy” rating.
Risk tips
The development of overseas business is less than expected, the incubation and promotion of product innovation is less than expected, the promotion of Hongmeng ecology is less than expected, and the goodwill is impaired.
