\u3000\u3 Guocheng Mining Co.Ltd(000688) 095 Fujian Foxit Software Development Joint Stock Co.Ltd(688095) )
Event:
The company issued the annual report of 2021 and the first quarter report of 2022 after the closing on April 27, 2022.
Comments:
The total operating revenue increased by 15.48% year-on-year, and continued to promote the transformation of business to subscription mode
In 2021, the company achieved a total operating revenue of 541 million yuan, with a year-on-year increase of 15.48%, and a year-on-year increase of about 19.17% after excluding the impact of the decline of US dollar conversion exchange rate. In terms of products, the company's core product pdfeditor achieved revenue of 452 million yuan, a year-on-year increase of 18.15%, accounting for 83.44%. In terms of business model, the revenue of pdfeditor under subscription mode increased by 27.72% year-on-year, and the proportion of revenue increased to 15.11% from 13.98% in the same period last year; The revenue of pdfeditor under authorization mode increased by 16.84% year-on-year. From the perspective of sales channels, the company achieved a revenue of 129 million yuan through agency sales, with a year-on-year increase of 22.50%, accounting for 23.92%. Both Dell and Synnex, the company's mature channels, recovered from the impact of the epidemic, and their sales increased by more than 30% year-on-year.
Strengthen new product R & D and brand publicity, and officially launch the cloud version of PDF Editor
In 2021, the company realized a net profit attributable to the parent company of 462354 million yuan, a year-on-year decrease of 59.90%, mainly because the company increased the upgrading of existing products, R & D investment of new products and special brand publicity, and implemented equity incentive plan, resulting in an increase in expenses during the period. In 2021, the company's sales, management and R & D expenses were 290 million yuan, 95 million yuan and 149 million yuan respectively, with a year-on-year growth rate of 55.43%, 14.04% and 97.48% respectively. In terms of R & D, the company released 11.0 windows and MAC versions of its core product pdf editor, and the cloud version of pdfeditor was officially launched. The form upgrading of core products ushered in an important inflection point. In addition, the company successfully entered the field of electronic signature, acquired accountsight, a well-known electronic signature enterprise in the United States, enriched the product matrix and extended the business line.
22q1 company's operating revenue grew steadily and released new foxitesign products
In the first quarter of 2022, the company achieved an operating revenue of 140 million yuan, an increase of 10.31% year-on-year, and an increase of about 14.43% year-on-year after excluding the impact of the decline of foreign currency conversion exchange rate. The net profit attributable to the parent company was 4.9875 million yuan, a year-on-year decrease of 83.82%, mainly due to the company's continuous investment in long-term layout. From the product side, in February 2022, the company completed the integration with the acquisition company accoutsight electronic signature products, released new foxitesign products, and reached an agency cooperation with Dell's new electronic signature products to widely promote foxitesign in Dell channels. In April 2022, the company's electronic signature service in China entered the public beta stage. At the same time, the company's Fuxin home decoration design and construction coordination platform for home decoration field was released. It is expected to be officially introduced to the market in 2022 after several months of trial.
Profit forecast and investment suggestions
The company is expected to fully benefit from the development of PDF industry by virtue of differentiated business strategies such as product cost performance and high-quality service. It is predicted that the operating revenue of the company from 2022 to 2024 will be 671, 823 and 990 million yuan, the net profit attributable to the parent company will be 73, 95 and 121 million yuan, the EPS will be 152, 1.98 and 2.52 yuan / share, and the corresponding PE will be 58.05, 44.51 and 34.98 times. Since its listing, the company's PE has mainly operated between 70-130 times. Considering the space and sustainable growth of the industry in which the company is located, the company is given 85 times of the target PE in 2022, and the corresponding target price is 129.20 yuan. Maintain the "buy" rating.
Risk tips
Covid-19 recurrent pneumonia; Industry competition intensifies; China's market expansion is less than expected; Pdf product R & D and channel expansion were not as expected; Overseas business risks.
