\u3000\u3 Shengda Resources Co.Ltd(000603) 927 Sinosoft Co.Ltd(603927) )
Investment Event: the company released the first quarterly report of 2022: the operating revenue reached 1.246 billion yuan, a year-on-year decrease of 2.15%, and the net profit attributable to the parent company reached 07 million yuan, a year-on-year increase of 7.77%; The net profit deducted from non parent company amounted to 05 million yuan, a year-on-year decrease of 25.15%.
The performance fluctuated slightly, and the net profit attributable to the parent increased steadily. In the first quarter of 2022, the company made efforts to overcome the negative impact of the epidemic and achieved a revenue of 1.246 billion yuan, a year-on-year decrease of 2.15%; The net profit attributable to the parent company reached 07 million yuan, a year-on-year increase of 7.77%; The net profit deducted from non parent company amounted to 05 million yuan, a year-on-year decrease of 25.15%.
The operation quality has been steadily improved, and the R & D expenses have continued to rise. During the reporting period, the gross profit margin of the company reached 32.6%, compared with 28.92% in the same period last year, with a year-on-year increase of 3.68 percentage points; The net profit margin reached 0.58%, 0.53% in the same period last year, with a year-on-year increase of 0.05 percentage points. The gross and net profit margin of the company increased year by year, and the profit quality continued to improve. The company continues to focus on improving product and service capabilities through R & D and innovation. In the first quarter of 2020, the company's R & D expenses were RMB 287 million, a year-on-year increase of 15.4%.
Policies have accelerated the development of the insurance industry, diversified market participants and promoted the growth of IT investment. On January 26, 2022, the China Banking and Insurance Regulatory Commission issued the guiding opinions on the digital transformation of banking and insurance industry, which proposed that the digital transformation of banking and insurance industry will achieve remarkable results by 2025. The "14th five year plan" for the development of insurance science and Technology issued by the insurance industry association proposed that during the 14th Five Year Plan period, the industry should be promoted to achieve the goal of more than 1% of information technology investment and more than 5% of information technology personnel. At the same time, with the growth of science and technology investment, insurance services are gradually embedded in all walks of life and all kinds of risk points. This factor will also drive new demand growth points in the insurance it market. As the absolute leader of the insurance IT industry, the company emphasizes the development mode of "similar reuse", and the software development efficiency is continuously improved. Driven by the accelerated growth of the insurance it market, the company's business lines will show a good development trend.
Investment suggestion: we estimate that the company's revenue in 2022, 2023 and 2024 will be 7.271/83.09/9.337 billion yuan respectively, and the net profit attributable to the parent company will be 7.15/8.68/1.041 billion yuan respectively, and the corresponding PE will be 17 / 14 / 12 times respectively, giving the company a "buy" rating.
Risk tip: business development is less than expected and policy promotion is slow
