\u3000\u3 China Vanke Co.Ltd(000002) 368 Taiji Computer Corporation Limited(002368) )
Event: on April 28, 2022, Taiji Computer Corporation Limited(002368) released the first quarterly report of 2022. In the first quarter of 2022, the company achieved an operating revenue of 1.859 billion yuan, a year-on-year increase of 18.65%, a net profit attributable to the parent company of 19 million yuan, a year-on-year decrease of 5.08%, and a net profit not attributable to the parent company of 16 million yuan, a year-on-year increase of 9.56%. The performance is in line with market expectations.
Key investment points
Rapid growth of revenue and excellent performance of operating cash flow: under the influence of the epidemic, the company’s revenue in the first quarter of 2022 still increased by 18.65% year-on-year, reflecting strong downstream demand and strong competitiveness of the company. In the first quarter of 2022, the company’s operating cash flow increased by 25.06% year-on-year, with excellent performance. In 2022, the company will continue to focus on the development strategy of strengthening the foundation, innovation, improvement and optimization, actively invest in new infrastructure, and promote business transformation and management improvement.
Acquire and improve the basic software industry system, and promote the rapid growth of business in Xinchuang New Year: the acquisition and capital increase of the company’s Jincang of the National People’s Congress and the acquisition of part of the equity of Puhua software have been completed, the shareholding proportion of Jincang of the National People’s Congress has been increased to 51%, and the company holds 20% of the equity of Puhua software. Through acquisition and equity participation, the company has built a complete basic software system covering operating system, database and middleware, and has become one of the few digital service providers in the whole industry chain in China. Jincang of the National People’s Congress continues to lead the market share in the field of Party and government information and innovation, and has made major breakthroughs in information and innovation in communication, finance and energy industries. The technical innovation and comprehensive service ability of Jincang database have been highly recognized by the market. In 2022, the market scale of Party and government credit innovation is expected to increase year-on-year. The company’s products are highly competitive in the market of Party and government credit innovation and are expected to usher in high-speed growth.
CETC resources support and orderly promotion of state-owned enterprise reform: CETC positioned Taiji Computer Corporation Limited(002368) as the core industry platform of the group’s Internet Information Industry and the main platform of the basic software industry, and promoted the resource integration and coordinated development of CLP Taiji and Taiji Computer Corporation Limited(002368) . The company has received strong support from CETC and CLP Taiji in policy, capital, industrial resources and market. Focusing on the national online communication strategy and based on the new development stage of digital transformation, the three-year action of the company’s state-owned enterprise reform is advancing according to the scheduled plan, actively leading the reform and development with innovation and promoting the high-quality development of state-owned assets. The company will make full use of the advantages of the capital operation platform of listed companies and continue to strengthen the coordinated development with CETC Taiji in terms of key sector integration and high-quality business sector incubation.
Profit forecast and investment rating: the company continues to increase investment in product R & D, and the market scale of Xinchuang is expected to usher in a large amount in 2022. At the same time, the company is supported by resources of CETC, with a view to building a “100 billion market value” enterprise as soon as possible. Based on this, we maintain the company’s forecast of net profit attributable to the parent company from 2022 to 2024 at RMB 406 / 4.49 / 500 million, and maintain the “buy” rating.
Risk warning: the promotion of Xinchuang business does not meet expectations; The market share in each segment is less than expected.
