\u3000\u3 Guocheng Mining Co.Ltd(000688) 111 Beijing Kingsoft Office Software Inc(688111) )
Core view
Revenue increased steadily in the first quarter and contract liabilities performed well. In the first quarter of 2022, the company realized a revenue of 868 million yuan (+ 12.26%), a net profit attributable to the parent company of 251 million yuan (- 18.42%), and a net profit attributable to the parent company of 201 million yuan (- 21.78%) after deduction. In the first quarterly report, the contract liabilities of the company were 1.564 billion yuan, a year-on-year increase of 79%, an increase of 143 million yuan month on month, maintaining a high growth trend; The total contractual liabilities exceeded 1.8 billion yuan. The company's net cash flow from operating activities was 153 million yuan, a year-on-year decrease of 32.76%, mainly due to the net increase of more than 1000 personnel and the increase of employee compensation expenses.
The net interest rate entered the normal range, and the investment in R & D remained high. In the first quarter, the gross profit margin of the company reached 87% and the net profit margin attributable to the parent company was 29%, showing improvement month on month. The year-on-year decline in net profit was mainly due to the large year-on-year decline in net profit in Q1. It is expected that the current net interest rate has gradually stabilized. With the easing of the base effect, the performance growth rate in 2022 is expected to be low before and high after. As the company's personnel increased by more than 48% in the past 21 years, various expenses maintained a high growth, and the sales, management and R & D expenses increased by 17%, 44% and 49% year-on-year; The company continues to increase investment in R & D.
Personal subscriptions and institutional subscriptions grew rapidly, and monthly life maintained a stable growth. In the first quarter, the company's personal subscription revenue was 426 million yuan (+ 36.72%), mainly due to the continuous expansion of the user base and the effectiveness of the transformation of long-term members; Institutional subscription revenue was 145 million yuan (+ 78.72%), which was mainly due to the continuous improvement of the quality of the company's cloud and collaboration products and solutions and the continuous improvement of customer experience, which effectively promoted the cloud process and penetration of customers. The authorized revenue of institutions was 232 million yuan (- 10.84%), mainly due to the high base of Xinchuang in the same period last year and the uncertain impact of the current promotion of Xinchuang. Internet advertising revenue was 65 million yuan (- 45.88%), mainly due to the company's optimization of customer experience and active contraction of advertising business. As of Q1 of the year 22, the number of monthly living equipment of the company's main products was 572 million (+ 14.86%). Among them, the monthly activity of wpsofficepc version is 232 million (+ 17.17%); The monthly activity of mobile version is 336 million (+ 14.29%); The number of monthly living equipment of other products of the company is close to 5 million.
The two companies continue to tap customer value. At the end of 2021, the company released Jinshan digital office platform, a platform product for the digital transformation of super large organizations, and released three new products: Jinshan collaboration, light dimension table and Jinshan knowledge base. The office platform includes two enabling platforms: document platform and collaboration platform. It takes the user's own platform as the core to help customers build an independent digital office platform. The company actively promoted the transformation of "cloud and collaborative office". The number of registered enterprises in the public cloud market exceeded one million, and the number of files stored by users on the public cloud increased from 17.5 billion at the end of 2018 to about 130 billion, making substantive breakthroughs in finance, energy, operators, construction and other industries.
Risk tip: the growth of Xinchuang market slows down; Collaborative business development is less than expected
Investment advice: maintain the "buy" rating. It is estimated that from 2022 to 2024, the operating revenue will be 43.75/57.88/75.95, the growth rate will be 33% / 32% / 31% respectively, and the net profit attributable to the parent company will be RMB 1.384/18.502417 billion, corresponding to 53 / 40 / 30 times of the current PE, maintaining the "buy" rating.
