\u3000\u30 Beijing Jingyeda Technology Co.Ltd(003005) 25 Fujian Boss Software Corp(300525) )
Event overview
1) in early May, the partner plan of Fujian Boss Software Corp(300525) group in 2022 with the theme of “thousands of sails set sail” was officially launched. The company opened industrial products and service solutions in the three business areas of government smart finance and finance, digital procurement and smart city + digital village. With the goal of “thousands of sails”, the company recruited standard partners, project partners, industry partners and service partners from all over the country and fully enabled partners, Go hand in hand to realize the transformation from demand to profit.
2) recently, Fujian Boss Software Corp(300525) released the 2021 annual report and the 2022 first quarter report. In 2021, the company achieved an operating revenue of 1.564 billion yuan, a year-on-year increase of 37.65%; The net profit attributable to the parent company was RMB 229 million, with a year-on-year increase of 41.62%; The net profit deducted from non parent company was 212 million yuan, with a year-on-year increase of 64.79%. In 2022q1, the operating revenue was 188 million yuan, a year-on-year increase of 40.84%; The net profit attributable to the parent company was -43 million yuan, a year-on-year decrease of 15.4%; The net profit deducted from non parent company was -47 million yuan, a year-on-year decrease of 12.21%.
Promote the implementation of technology application to continue the good development momentum
From the revenue side, the revenue from software development and sales services was 348 million yuan, a year-on-year increase of 26.42%, accounting for 22.25% of the total revenue; The revenue from technical services was 1.097 billion yuan, a year-on-year increase of 40.88%, accounting for 70.14% of the total revenue. The company’s operating performance has obvious seasonal distribution. The operating revenue in the second half of 2021 accounted for 75.3% of the total revenue of the whole year, and the net profit attributable to the parent company in the fourth quarter accounted for 98.77% of the whole year.
In terms of gross profit margin, the gross profit margin of the two main business segments has increased. In 2021, the gross profit margin of software development and sales services was 87.96%, an increase of 8.07 PCT year-on-year, and the gross profit margin of technical services was 62.2%, an increase of 0.93 PCT year-on-year; The comprehensive gross profit margin was 65.08%, with a year-on-year increase of 1.52 PCT, and the overall profitability was enhanced.
From the expense side, the sales expense rate and management expense rate in 2021 were 16.18% and 15.24% respectively, with a year-on-year increase of 0.93 and 1.02 PCT respectively, which was mainly due to the combined influence of the increase of personnel salary and number, the increase of travel expenses and entertainment expenses invested in developing the market, and the increase of incentive expenses due to the implementation of the new stock option incentive plan. The company’s R & D expenses were 241 million yuan, a year-on-year increase of 44.28%, and the R & D expense rate was 15.41%. The company continues to invest in technology research and development and optimize the talent structure, promote the implementation and application of financial big data and blockchain technology in e-bills, public procurement, smart cities and digital villages, and improve the ability of core technologies, platforms, products and comprehensive solutions.
Grasp the policy dividend and accelerate the expansion of financial information business
In the field of financial e-bills and non tax revenue, in line with the national strategy of promoting “Internet + government services”, the company has continuously expanded new areas and promoted the in-depth application of the bill system in the provinces that have launched it. According to the annual report, by the end of 2021, the financial electronic bill business had covered the Ministry of finance, 30 provinces and Xinjiang Construction Corps. With the comprehensive implementation of medical electronic bill management reform, the company has achieved a good market share in medical electronic bills by virtue of its competitive advantage. By the end of 2021, medical electronic bills have covered public medical institutions at all levels, including more than 5000 secondary and above. In terms of non tax payment, the non tax electronic reform has covered 22 provinces in China.
In the field of government smart finance, the company highlights its competitive advantage and establishes a good reputation through benchmarking projects. In February 2022, Bosi Zhixin, a holding subsidiary, stood out in the competition of many manufacturers and successfully won the bid for the procurement project of Shanghai budget management integrated information system, further consolidating the company’s leading position in the field of financial informatization.
In the field of public procurement, with the increasingly mature application of information technology and the deepening reform of government procurement system, the demand for electronic procurement will continue to expand. The company’s government procurement integration business has achieved business in 7 provinces of Fujian, Guangdong, Inner Mongolia, Heilongjiang, Shaanxi, Sichuan and Liaoning, and subsystems such as E-bidding and e-stores have entered 9 provinces such as Beijing and Shandong. The company continues to expand in college procurement and enterprise procurement, including more than 180 college customers in 19 provinces and cities; Enterprise customers include FAW Volkswagen, Ping An Group, China Life Insurance Company Limited(601628) and other large state-owned and central enterprises.
In the field of smart city + digital village, the company gives full play to its advantages in government payment services and one yard access, actively expands the construction and operation mode of Chengtong app and enriches the product types in this business field. In terms of digital village, after nearly a year of exploration, several products have been launched. Some products, such as digital village comprehensive management platform, rural homestay Industry Internet platform and adoptive agricultural service platform, have been piloted in some areas.
Investment advice
Fujian Boss Software Corp(300525) is a leading enterprise in China’s financial information industry. Under the strategic background of “Internet + government service” and the general trend of digital economy, the company accelerates the promotion of smart financial business and public procurement business, and continues to consolidate its leading position in the industry. We expect the company to achieve operating revenue of RMB 1.957/24.33/3.016 billion and net profit attributable to parent company of RMB 299/3.85/489 million in 2022 / 23 / 24. Maintain the investment rating of Buy-A and give a six-month target price of 22.37 yuan, equivalent to 30 times the dynamic P / E ratio in 2022.
Risk warning: the promotion of financial informatization is not as expected; The reform of the government procurement system was less than expected.
