\u3000\u3 Guocheng Mining Co.Ltd(000688) 111 Beijing Kingsoft Office Software Inc(688111) )
The long-term growth path is clear and the "buy" rating is maintained
We maintain that the company's net profit attributable to the parent company from 2022 to 2024 is predicted to be 1.324 billion yuan, 1.770 billion yuan and 2.296 billion yuan, corresponding to EPS of 2.87, 3.84 and 4.98 yuan / share respectively. The current share price corresponds to PE of 55.4, 41.4 and 31.9 times from 2022 to 2024. The company has broad growth prospects and maintains the "buy" rating.
The performance is in line with expectations, and the R & D investment continues to increase
(1) in 2022q1, the company achieved an operating revenue of 868 million yuan, a year-on-year increase of 12.26%; The net profit attributable to the parent company was 251 million yuan, a year-on-year decrease of 18.42%, and the performance was in line with expectations. (2) The gross profit margin of 2022q1 company was 86.53%, a year-on-year decrease of 3.21 percentage points and a month on month increase of 3.08 percentage points, mainly due to the change of income structure. (3) On the expense side, due to the large increase in the number of personnel compared with the same period in 2021, the rate of various expenses increased. The rate of sales expenses, management expenses and R & D expenses were 19.82%, 11.20% and 35.19% respectively, with a year-on-year decrease of 0.8, 2.49 and 8.73 percentage points. (4) The net cash flow from operating activities was 153 million yuan, a year-on-year decrease of 32.76%, mainly due to the increase in employee compensation expenses. At the end of the first quarter, the company's contractual liabilities were 1.564 billion yuan, an increase of 143 million yuan over the end of 2021, with a year-on-year increase of 79.13%, mainly due to the increase of advance receipts from subscription business, which laid a good foundation for the growth of subsequent subscription business.
Both personal and institutional subscription businesses are growing rapidly
In terms of business lines, (1) both individual and institutional subscription businesses grew rapidly, of which the income of individual subscription business was 426 million yuan, a year-on-year increase of 36.72%, mainly due to the expansion of user base and the long-term transformation of user attributes; (2) The revenue of institutional subscription and service business was 145 million yuan, with a year-on-year increase of 78.72%, mainly due to the improvement of "cloud and collaboration" application experience, which promoted the cloud penetration of institutional customers. With the promotion of the company's digital office platform, it is expected to provide new impetus for the growth of institutional subscription business; (3) The revenue from authorized business of institutions was 232 million yuan, a year-on-year decrease of 10.84%, mainly due to the high Q1 base in 2021, and the specific promotion rhythm of the information innovation field is not clear at present. (4) In addition, the revenue of Internet advertising business was 65.12 million yuan, a year-on-year decrease of 45.88%, mainly due to the company's optimization of user experience and contraction of advertising business line.
Risk warning: the company's business development is not as expected; The risk of intensified competition in the market.
