\u3000\u30 Chongqing Baiya Sanitary Products Co.Ltd(003006) 87 Guangzhou Sie Consulting Co.Ltd(300687) )
Bodiless Midea started with the implementation of ERP and created a new growth curve of intelligent manufacturing. Born in Midea Group Co.Ltd(000333) , the company started with the implementation of ERP system as its main business. In 2012, the company launched the first intelligent manufacturing solution product with s-mes as the core, thus officially entering the field of intelligent manufacturing. After years of operation, the company has formed a product and service system focusing on Pan ERP business and intelligent manufacturing. In 2021, the company’s total revenue was 1.935 billion yuan, including pan ERP business revenue of 1.118 billion yuan and intelligent manufacturing revenue of 592 million yuan, and the compound growth rate of intelligent manufacturing business revenue from 2017 to 2021 was as high as 68.5%. Since 2018, the company’s R & D investment has increased. From 2017 to 2021, the compound growth rate of R & D investment has reached 66.1%, and the proportion of R & D personnel has also increased to more than 40%. The company’s revenue and profit quality gradually improved. In 2021, the company’s revenue to cash ratio and net cash ratio exceeded 1, which was the first time in the company’s history.
The volume of China’s manufacturing industry supports the digital space, and the penetration of informatization from top to bottom brings development opportunities for intelligent manufacturing. China has a 25 trillion level manufacturing market, accounting for nearly 30% of the global share, but China’s industrial software market only accounts for about 6.6% of the global share. China’s industrial software will usher in great development opportunities in the future. Represented by ERP, Chinese enterprises have reached a certain level of informatization at the level of operation and management. At present, they are making digital penetration into the workshop level scene of production and manufacturing, which will bring greater opportunities for the development of intelligent manufacturing represented by MES / mom. Our calculation of MES market space shows that China’s MES market will reach 43 billion yuan in 2035.
The company’s intelligent manufacturing business is developing well, and the path of internal and external collaborative development is clear. Starting from the agent implementation of Siemens products, the company officially launched self-developed MES products in 2012. So far, it has formed a self-developed + agent intelligent manufacturing business structure, improved the self-developed product system, and realized the complete coverage of the fields involved in intelligent manufacturing. In the future, the company will continue to improve the modularity of self-developed products and the standardization of industry kits, and build the second growth curve of intelligent manufacturing business through internal and external collaborative development. Specifically: 1) the company will accelerate the entry into equipment manufacturing, medicine and other industries in terms of technology accumulation in industries with inherent advantages such as home appliances, electronics and communication, expand the business base in East China and expand the revenue increment; 2) In view of the high know-how barriers in different segments of the manufacturing industry, the company will also focus on investing in small and beautiful companies in different fields to achieve rapid entry in multiple fields; 3) In the long run, the cloud of manufacturing system will become a general trend. The company has in-depth cooperation with Huawei cloud to accelerate the polishing of cloud service products of intelligent manufacturing, provide more customers, especially small and medium-sized customers with products that are easy to implement and competitive in price, and improve their own revenue and profit quality.
Profit forecast and investment suggestions: we expect the total revenue of the company from 2022 to 2024 to be RMB 2.568/33.72/4.346 billion respectively, the net profit attributable to the parent company to be RMB 318/4.41/593 million respectively, the EPS to be RMB 0.80/1.11/1.49 respectively, and the corresponding PE to be 27 / 20 / 15 times respectively. Based on the trend of high growth of the company’s intelligent manufacturing business and steady improvement of gross profit margin, it is covered for the first time and given a “buy” rating.
Risk warning: the risk that the prosperity recovery of downstream industries and customers is less than expected; Risk of fluctuation of it expenditure of core customers; The risk that the industry competition intensifies and the R & D iteration of self-developed products is less than expected; The public data used in the research report may have the risk of information lag or untimely update; Industry scale measurement deviation risk, etc.
