\u3000\u3 Shengda Resources Co.Ltd(000603) 927 Sinosoft Co.Ltd(603927) )
Event overview
The company released the first quarterly report of 2022 on April 28. In 22q1, the operating revenue was 1.246 billion yuan, a year-on-year decrease of 2.15%, and the net profit attributable to the parent company was 07 million yuan, a year-on-year increase of 7.77%. The growth rate of the company's 22q1 performance slowed down. We believe that in the short term or disturbed by epidemic factors, we are still optimistic about the company's business development throughout the year.
22q1 performance is under pressure or disturbed by the epidemic, and the contract liabilities indicate that the demand for orders is still high
In terms of revenue and profit, the company's 22q1 revenue decreased by 2.15% year-on-year, and the net profit increased by 7.77% year-on-year. The short-term growth of performance is under pressure. We believe that on the one hand, due to the spread of Q1 epidemic in many places, especially in the first tier cities, the main downstream insurance customers of the company are concentrated in the first tier cities, so they are greatly affected by the epidemic, and some businesses may not be able to realize the recognition of income. On the other hand, the company's performance has obvious seasonality. Taking 2021 as an example, the revenue of 21q1 accounts for only 20% of the annual revenue and the profit accounts for 1.2% of the annual revenue. Therefore, the performance of 22q1 does not contribute much to the annual performance. If the impact of the subsequent epidemic is eliminated, the company is still expected to achieve steady growth of the annual performance.
From the perspective of gross profit margin, the comprehensive gross profit margin of 22q1 company was 32.60%, an increase of 3.68 PCT year-on-year. We believe that it is mainly due to the decline in the proportion of the company's low gross profit integration business, which also confirms that the company's business is disturbed by the epidemic, and the integration business has a higher demand for on-site delivery, so it is more affected by the epidemic.
In terms of contract liabilities, by the end of 22q1, the company's contract liabilities were still 1.875 billion yuan, a year-on-year increase of 14.12%. Contract liabilities are mainly the advance payment of customers. The double-digit growth of contract liabilities indicates that the order demand of the company is still good. Therefore, we are not pessimistic about the performance of the company in the whole year.
The implementation of the "insurance +" strategy was accelerated and the future growth curve was opened
"Insurance +" strategy promotes a new round of growth of the company. With the extension of the demand of the insurance industry, the demand for insurance informatization has gradually evolved from traditional internal management to external business synergy. Therefore, the company is expected to pay close attention to the core insurance customers and extend the informatization service to the system docking and business construction between the insurance company and various industry scenarios, so as to help the insurance customers realize higher customer value and open a new round of growth for the company.
From the perspective of development strategy, the current "insurance +" of the company mainly focuses on the key directions such as "insurance + great health", "insurance + great transportation", "insurance + great consumption" and "insurance + great safety". On the one hand, with the help of the company's competitive advantages in the insurance it field, it cuts into other fields closely related to the insurance industry and actively focuses on medical and health, social security, education, agriculture, meteorology, energy Business layout in power and other fields; On the other hand, cooperate with insurance customers to jointly explore the insurance industry, embed a variety of application scenarios through technical means, provide business opportunities for digital guarantee, assist the innovation of insurance companies' products and services, and help the business development of insurance companies.
From the perspective of business results, according to the disclosure in the annual report, the company's direct business income from the implementation of the "insurance +" strategy in 2021 was 634433 million yuan, with a gross profit margin of 44.55%, covering many fields such as health management, automotive aftermarket services, gas safety and medical commercial insurance, involving system construction and docking, marketing services, automatic underwriting and claim settlement.
In addition, according to the disclosure of the annual report, in 2021, the company realized insurance it related revenue of 284 million yuan for insurance intermediaries, insurance technology companies, cloud infrastructure manufacturers and other industry customers, with a year-on-year increase of 88.02%. Insurance intermediaries, insurance technology companies and cloud infrastructure manufacturers play an important role in the process of embedding insurance into various application scenarios. They are also an important part of the company's "insurance +" strategy and important partners in the company's "insurance +" ecological construction; The company carries out insurance it software development and system construction for customers in other industries, and also lays the foundation for the subsequent implementation of "insurance +". In the future, the rapid growth of insurance it revenue from insurance intermediaries, insurance technology companies and non insurance customers is expected to inject new vitality into the growth of the company's insurance it business and main business. As an important business layout of the company in the direction of "insurance + transportation", the company achieved an income of 53.19 million yuan in the field of auto finance in 2021, with a year-on-year increase of 68.59%. Its customers include the financial and technology subsidiaries of large auto enterprises such as FAW, Toyota, BAIC, Byd Company Limited(002594) and so on.
Investment advice
Sinosoft Co.Ltd(603927) as a large-scale industry application software provider controlled by Software Institute of Chinese Academy of Sciences, based on the vigorous informatization demand of the insurance industry, expand customer demand through "insurance +" strategy, open the future growth curve, and is expected to achieve long-term steady growth. We expect the company to achieve an operating revenue of RMB 7.154/8.140/9.205 billion in 2022 / 23 / 24, with a year-on-year increase of 13.9% / 13.8% / 13.1%. The net profit attributable to the parent company was 714 / 882 / 1078 million yuan, with a year-on-year increase of 23.6% / 23.6% / 22.1%. Maintain the investment rating of Buy-A and give a six-month target price of 30.05 yuan, corresponding to 25 times the dynamic P / E ratio in 2022.
Risk warning: the investment in insurance informatization is less than expected; The promotion of "insurance +" strategy was less than expected.
