\u3000\u30 Jinzai Food Group Co.Ltd(003000) 36 Beijing Supermap Software Co.Ltd(300036) )
On April 28, 2022, the company released the first quarterly report of 2022, realizing an operating revenue of 277 million yuan, a year-on-year increase of 2.88%, and a net profit attributable to the parent company of 11.69 million yuan, a year-on-year increase of 1.25%.
The continuous improvement of the degree of productization has significantly optimized the gross profit margin. The overall gross profit margin of the company in 2022q1 was 56.32%, an increase of about 4 percentage points year-on-year, and it was also the highest level in the same period of recent five years. The company has continuously strengthened the promotion of platform products, and strengthened ecological cooperation at the application level. The improvement of product degree has led to the continuous improvement of gross profit margin.
Many policies catalyze the long-term growth of GIS leaders. 1) When leading cadres leave office, the audit responsibility is clear, which highlights the importance of GIS. On April 19, 2022, the 25th meeting of the Central Committee for comprehensively deepening reform pointed out that it is necessary to improve the evaluation criteria for the decision-making and supervision performance of leading cadres related to resources and environment, integrate the implementation of the major deployment of the CPC Central Committee such as natural resources protection and ecological protection red line into relevant evaluation indicators, and take the audit results as an important reference analysis for assessment, appointment, removal, reward and punishment. As an application platform for the management and analysis of massive natural resource information, GIS plays a very important role in natural resource management and is expected to play an important role in the promotion of relevant policies.
2) real 3D: the construction goal is clear, and the GIS leader is expected to benefit. In February 2022, the Ministry of natural resources issued the notice on comprehensively promoting the construction of real 3D China. It is estimated that 50% of the government's decisions can be completed through online real 3D space in 2025 and increased to 80% in 2035. It focuses on the requirement of "digital space base", defines the construction of management system and database, and the relevant construction increment can be expected. As China's leader in the field of GIS, the company has a real-life three-dimensional land spatial planning full cycle management solution, which is expected to continue to benefit.
3) Chuangxin: long-term existence. The 11th meeting of the central financial and Economic Commission was held on April 26, 2022. The meeting focused on strengthening the infrastructure construction of "ensuring national security", highlighting the importance of information innovation. As an important software for managing natural resource data, GIS is the key field of information innovation, and the demand in related fields is expected to continue to release. In 2021, the company realized the implementation of the orders of Xinchuang in 9 ministries and commissions and more than 30 provinces and cities, and there are Xinchuang benchmark projects at the ministerial, provincial, municipal and county levels. Xinchuang will not only bring the replacement of platform products, but also the reconstruction of upper application software, and the long-term market potential can be expected.
Investment suggestion: the company has a leading position in the field of GIS in China. Real scene 3D, domestic substitution and other policies began to be implemented one after another, which was conducive to the development of the company. At the same time, the long-term potential of emerging businesses such as meta universe and C-end SaaS business can be expected. It is estimated that the net profit attributable to the parent company from 2022 to 2024 will be 365 / 453 / 554 million yuan, and the corresponding PE will be 22x, 18x and 14x respectively, maintaining the "recommended" rating.
Risk tip: the risk of intensified industry competition, uncertainty in the development of new fields such as metauniverse, and some uncertainty in the progress of policy promotion
