\u3000\u30 Chongqing Baiya Sanitary Products Co.Ltd(003006) 87 Guangzhou Sie Consulting Co.Ltd(300687) )
In depth cooperation with industry giants to form two business maps
The company is a top manufacturer in China's "intelligent manufacturing + core ERP" and other fields. Through in-depth cooperation with Midea, Huawei, sap, Oracle, Siemens and other industry giants, as well as the strategic planning, execution and insight of the entrepreneurial team of young partners, the company stands out in the tide of China's digital transformation. At present, the company has formed two major sectors of Pan ERP and intelligent manufacturing, and the synergy advantage of the two sectors is gradually emerging. The annual active customers have increased to more than 800, the compound growth rate of orders in recent three years is 40%, and the proportion of large orders continues to increase.
The "three new" strategy continues to make breakthroughs and dividends will continue to appear
The company continues to promote the "three new" strategies such as new products, new markets and new ecology, and the dividends continue to appear. (1) For new products, the company will promote the commercialization and Sinicization of products, continue to iterate and enrich the s-mom product cluster, expand the industry suite, upgrade the industrial Internet platform, and release the industry finance integration sinicization, which will drive the continuous increase of the proportion of self-developed products and gross profit margin. (2) In new ecology, the company promotes investment and M & A, actively layout in industrial Internet of things, SaaS and other fields, improve its business map and give play to synergy. (3) In new markets, in 2016, the company's revenue in South China accounted for more than 85%. In 2020, the company determined the "East China" strategy. The volume of manufacturing industry in East China far exceeded that in South China, and the advantageous industries of electronics, household appliances, high-end equipment and other companies are very active. The company will form a "East China + South China" two wheel drive. In addition, the company's value customers in new industries also continued to make breakthroughs.
Digital economy is the general trend, and the high growth of industrial software can be expected
Industrial software is the result of the software of industrial technology. It is an important foundation and core support of intelligent manufacturing. It is of great strategic significance to promote the transformation and upgrading of China's manufacturing industry and realize manufacturing power. During the 14th Five Year Plan period, the development of digital economy will further boost the market demand for intelligent manufacturing software. In the long run, the aging population, the growth of labor costs, the development of emerging technologies and other factors will drive the sustained high prosperity of China's industrial software. Compared with the high proportion of China's industrial added value in the world, industrial software still has broad growth space.
Profit forecast and valuation
The business synergy of "intelligent manufacturing + core ERP" is obvious, the strategies of new products, new markets and new ecology are accelerated, and the dividends will continue to appear. It is estimated that the net profit attributable to the parent company from 2022 to 2024 will be RMB 323, 451 and 593 million, corresponding to 26.5, 18.9 and 14.4 times of PE. It is covered for the first time and given a "buy rating".
Risk tips
Risks such as high concentration of customers, intensified market competition, rising labor costs and less than expected technological innovation.
