\u3000\u3 China Vanke Co.Ltd(000002) 368 Taiji Computer Corporation Limited(002368) )
Conclusions and suggestions:
The company released its 2021 annual report, with an operating revenue of 10.505 billion yuan, yoy + 23.11%, and a net profit of 373 million yuan, yoy + 1.19% (after deducting non net profit of 281 million yuan, yoy-6.33%), equivalent to EPS of 0.64 yuan, and the performance was in line with expectations. Quarterly, the company achieved an operating revenue of 3.502 billion yuan, yoy-8.03%, and a net profit of 299 million yuan, yoy + 1.47% (net profit of 210 million yuan, yoy-10.55%) in 2021q4. The performance is in line with expectations.
The large-scale delivery of Xinchuang business has brought the revenue into a high growth track: the company’s revenue has increased rapidly, mainly benefiting from the revenue of network information security business of 4.492 billion yuan, yoy + 43.89%, and the revenue of intelligent application and service business of 2.259 billion yuan, yoy + 39.94%. The former is mainly due to the rapid growth brought by the large-scale delivery of Xinchuang projects. At the same time, the company has developed and built Beijing jianjianbao big data support platform, It also brings rapid growth of smart application business.
The effect of cost reduction and efficiency increase is significant, and the short-term pressure on the cost side is large: the gross profit margin of the company in 21 years is 20.30%, a year-on-year decrease of 2.39 percentage points, which is mainly due to the low gross profit margin of Xinchuang projects. The company focuses on delivering a large number of Xinchuang projects in the short term, and the pressure on the cost side is large. It is expected that the gross profit margin is expected to rise in the future. The company has achieved remarkable results in reducing fees in 21 years, with the sales expense rate of 2.42%, a year-on-year decrease of 0.17 percentage points; The management fee was 6.96%, a year-on-year decrease of 3 percentage points, mainly due to the significant decline in the salary of managers. The company’s R & D expenditure in 21 years reached 758 million yuan, yoy + 26.66%, and the R & D investment increased significantly.
Acquisition of Puhua software to improve the company’s domestic basic software layout: Puhua software is mainly engaged in operating system business, with a full range of products and solutions for desktop operating system, server operating system, real-time embedded operating system and automotive electronic AUTOSAR operating system; Since its establishment, it has completed more than 70 topics such as “nuclear high base” and “industrial strong base”. Through the acquisition transaction, the company will build a basic software industry system covering operating system, database and middleware, seize the opportunities of independent and controllable industries, expand market share and enhance competitiveness. The company has gradually transformed from a system integrator to a provider of basic software and solutions, and is expected to continue to benefit from China’s digital transformation and the rapid development of information innovation.
Profit forecast: we expect the net profit of the company in 2022 / 23 to be 512 / 599 million yuan respectively, yoy + 37.35% / + 17.06%, equivalent to EPS of 0.88/1.03 yuan. At present, the corresponding PE of A-share price is 19 / 16 times, giving a “buy” rating.
Risk tips: 1. The development of Xinchuang business is not as expected; 2. The risk of intensified market competition; 3. The promotion of business transformation was less than expected.
