\u3000\u30 Guangdong Tengen Industrial Group Co.Ltd(003003) 79 Beijing Tongtech Co.Ltd(300379) )
Event:
On the evening of April 25, Beijing Tongtech Co.Ltd(300379) released the first quarterly report of 2022, realizing an operating revenue of 79 million yuan, a year-on-year decrease of 47.30%; The net profit attributable to the parent company was -47 million yuan, a year-on-year decrease of 289.49%; Deduct non net profit of – 50 million yuan, a year-on-year decrease of 679.14%; The basic earnings per share was -0.1025 yuan, a year-on-year decrease of 287.73%.
Comments:
Seasonal fluctuations superimposed covid-19 epidemic, affecting contract signing and revenue recognition
From the first quarter to the fourth quarter of 2021, the company’s revenue in a single quarter accounted for 17.31%, 6.82%, 21.34% and 54.53% of the whole year respectively. The seasonal fluctuation of revenue is obvious. In addition, covid-19 epidemic situation in some areas rebounded in the first quarter of 2022, which greatly affected contract signing and revenue confirmation. The superposition of the two factors led to a year-on-year decrease of 47.30% in the company’s revenue in the first quarter of 2022.
The chairman, directors and senior executives plan to increase their holdings, showing long-term confidence
On April 25, the company announced that Mr. Huang Yongjun, the actual controller, chairman and general manager, and Mr. Xu Shaopu, the director, deputy general manager, chief financial officer and Secretary of the board of directors, planned to increase the company’s shares with their own or self raised funds within six months from May 5, with a total increase of 30 million yuan to 50 million yuan. The shareholding increase plan shows the confidence of the chairman, directors and senior executives in the company’s future performance and the long-term investment value of the company’s shares, which helps to maintain the stability of the capital market and the interests of the company’s investors.
Profit forecast and rating
Considering the lower than expected performance in the first quarter and the long-term confidence shown by the increase in shareholders’ holdings, we expect the revenue in 202224 to be RMB 1.129/14.24/1.783 billion, the net profit attributable to the parent company to be RMB 273/3.38/387 million, the EPS to be RMB 0.59/0.74/0.84/share, and the corresponding PE to be 25X / 20x / 18x respectively. Maintain the “overweight” rating.
Risk tips
1. The implementation progress of Xinchuang did not meet expectations; 2. Industry competition intensifies; 3. Impairment of goodwill due to failure of information security and emergency command business to meet expectations; 4. Technological change leads to the backwardness of the company’s products and solutions.
