\u3000\u30 Guangdong Tengen Industrial Group Co.Ltd(003003) 79 Beijing Tongtech Co.Ltd(300379) )
Core view:
The event company released the first quarterly report of 2022. In 2022q1, the company achieved a revenue of 787831 million yuan, a year-on-year increase or decrease of – 47.30%; The net profit attributable to the parent company was -469442 million yuan, with a year-on-year increase or decrease of – 289.49%; The net profit attributable to the parent company after non deduction was -49.58 million yuan, with a year-on-year increase or decrease of – 679.14%.
22q1 performance is affected by seasonal fluctuations plus covid-19 epidemic factors, and contract signing and operating revenue recognition are greatly affected. Compared with the same period last year, the company’s 2022q1 performance has changed from profit to loss. On the one hand, the company’s customer groups are mainly customers in the fields of government, telecom operators, finance and transportation. Affected by the budget management system and centralized procurement system adopted by the company, the company’s operating revenue has always shown obvious seasonal characteristics, mainly concentrated in the second half of the year, especially in the fourth quarter; On the other hand, affected by the covid-19 epidemic in the first quarter, the company’s government and enterprise customers stopped production or delayed resumption of work and production, and the rhythm of bidding and contract procurement process slowed down significantly or even stagnated, resulting in a sharp year-on-year decrease in the signing of contracts and the postponement of original orders. At the same time, the epidemic affected the progress of orders in hand in the past, and also delayed the delivery and acceptance links, It had an adverse impact on the recognition of the company’s operating revenue in the first quarter.
In the 2021 annual report, the revenue grew well, the sales expense ratio increased greatly, and the R & D investment continued to be high. In 2021, the company achieved a revenue of 863 million yuan, a year-on-year increase of 34.80%; The net profit attributable to the parent company was 248 million yuan, a year-on-year increase of 1.53%; The net profit attributable to the parent company after deduction was 221 million yuan, with a year-on-year increase of 31.89%. During the reporting period, the gross profit margin of the company was 76.96%, a year-on-year decrease of 2.98pct; The expense rate during the period was 53.42%, with a year-on-year increase of 1.40pct; The net operating cash flow was 255 million, a year-on-year increase of 106.95%. The company has maintained high R & D investment for a long time. In 2021, the R & D investment was 243 million yuan, with a year-on-year increase of 20.52%, accounting for 28.12% of revenue. In addition, the company’s sales expense ratio was 21.43%, up 7.45pct year-on-year, mainly due to the expansion of the company’s sales scale, efforts to explore the market and build a nationwide marketing network during the reporting period.
Non basic software business performed well, and Xinchuang business still has great growth potential. In 2021, the company’s non basic software business achieved rapid growth, that is, security products, intelligent emergency and government enterprise digital transformation business increased by 30.02% / 67.94% / 42.68% respectively year-on-year, and the total proportion of revenue has reached 61%. The company has built two product systems of “data +” and “Security +” and laid out the digital transformation of government and enterprises under the guidance of “wisdom +” strategy. As of December 31, 2021, the company’s products and solutions have widely served thousands of industries and related business fields in China, with more than 5000 enterprise level users and more than 2000 partners in telecommunications, finance, government, energy, transportation and other industries.
The increase of senior executives’ holdings shows their confidence in development. On April 26, 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 self owned or self raised funds within 6 months from May 5, 2022, with a total increase of no less than 30 million yuan and no more than 50 million yuan. The purpose of this increase is based on the confidence in the company’s future performance and the long-term investment value of the company’s shares, in order to better promote the sustainable, stable and healthy development of the company, and maintain the stability of the capital market and the interests of the company’s investors.
Investment suggestion Beijing Tongtech Co.Ltd(300379) as a leading manufacturer of domestic middleware, it has gained an advantageous position in the fields of Party and government, telecommunications, finance and so on. The process of industry information innovation has been affected by the epidemic, but the long-term growth space has not been changed. The company’s information innovation business still has great growth potential. At the same time, the development of cloud computing and digital economy will also bring new incremental opportunities to the company, and the growth of the company’s non basic software business is bright. However, as the 2022q1 covid-19 epidemic has affected the signing of new orders and delivery acceptance of the company, and the deadline of this factor has not been confirmed yet, we predict that the EPS of the company in 20222024 will be 0.90 1.20 1.58 yuan respectively, and the corresponding PE will be 16.62 12.39 9.44. Maintain a “recommended” rating.
The risk indicates the risk of covid-19 epidemic persistence. The risk that the progress of Xinchuang is less than expected. The risk of price decline caused by fierce market competition.
