\u3000\u3 Shengda Resources Co.Ltd(000603) 383 Fujian Apex Software Co.Ltd(603383) )
Events
The company issued the 2021 annual report and the first quarterly report of 2022. In 2021, the company achieved an operating revenue of 503 million yuan, an increase of 43.68% over the same period last year, and a net profit attributable to the parent company of 137 million yuan, an increase of 26.65% over the same period last year. In the first quarter of 2022, the company achieved an operating revenue of 99 million yuan, a year-on-year increase of 38.21%; The net profit attributable to the parent company was 02 million yuan, a year-on-year increase of 13.45%.
Q1 revenue grew by 38% and is optimistic about the high prospect of business in the next three years
The growth rate of Q1 revenue in 2022 reached 38%, and has maintained a high growth rate of more than 30% since Q1 in 2021, reflecting the high outlook of the business. In 2021, the company invested in Beifa technology to further improve the layout of the company in the field of wealth management and asset management, and jointly launched the “new generation intelligent wealth management platform W5” to help wealth management institutions upgrade their wealth digitally. At present, it has been applied to many securities companies, fund companies, banks, etc. Wealth management is the general trend, and new business of asset management is also poised. We are optimistic that the business of the company will continue to maintain rapid growth in the next three years with the continuous development of product line and customer line.
Gross profit margin improved month on month, and profitability is expected to continue to recover throughout the year
Since Q1 in 2021, the company’s gross profit margin has been in a downward trend. The gross profit margin in Q1 in 2022 has increased by 1.45 percentage points compared with that in 2021. In the 2021 annual report, the company emphasized “further improving the operation efficiency of the company”. Benefiting from strengthening project management and operation, we expect the profitability of the company to continue to improve.
Q2 affected by the epidemic in Shanghai, the annual profit is expected to be 190 million
Considering the continuity of the epidemic in Shanghai since April and the operation situation that the company’s sales revenue in East China accounts for about 45% of the total revenue, the Q2 business of the company is expected to be affected to some extent. However, considering that the IT budget of downstream customers, securities companies and funds is stable throughout the year, we believe that the recovery in the second half of the year is a high probability event.
Combined with the operation in 2021, we will reduce the company’s revenue from 675 / 885 million yuan to 669 / 876 million yuan from 2022 to 2023, and the revenue in 2024 is expected to be 1.139 billion yuan; The net profit from 2022 to 2023 will be reduced from 204 / 281 million yuan to 194 / 258 million yuan. The net profit in 2024 is expected to be 336 million yuan, maintaining the “buy” rating.
Risk tips: 1) repeated outbreaks will have an impact on the company’s operation; 2) The implementation of financial information innovation is less than expected, which will affect the promotion progress of the company’s corresponding products; 3) The speed of product innovation cannot keep up with the external demand, and the change of environment will have an impact on the company’s performance; 4) Increased competition in the industry will bring challenges to the company
