\u3000\u3000 Beijing Seeyon Internet Software Corp(688369) (688369)
Core view:
China's leading collaborative management software manufacturer, with steady growth in performance. As a leading collaborative management software provider in China, the company has been deeply engaged in the field of enterprise management software since its establishment, providing customers with collaborative management software products, solutions, collaborative management platform and cloud services. The company's products are developed based on the platform model. With the characteristics of "dual-mode drive and cloud symbiosis" of V5 platform, the company has different types of product lines for enterprise customers and government customers - A8, A6 and G6 series. In terms of performance, the company's performance indicators tend to be good, and the cost rate is expected to continue to be compressed. At the same time, the company focuses on its flagship products and gradually increases its R & D investment. In 2020, the company will implement equity incentive to show its strong development determination.
The field of collaborative office is rising day by day, and the digital transformation has brought a huge amount of growth space. At present, the digital transformation of enterprises has become a rigid demand, and the market scale of OA industry continues to expand. In 2020, the number of real households in China's whole market reached 43.31 million, the compound growth rate in recent 10 years was 16.76%, and the scale of digital economy accounted for 40.24% of national GDP. Meanwhile, synergy data show that the market growth rate of team collaboration software is as high as 68.9%. From the supply side of collaborative management software, the concentration of leaders has become a long-term trend, and SaaS mode has brought high user stickiness to manufacturers. From the demand side, the digital transformation of enterprises, the decline of demographic dividend and the launch of information innovation policy have increased the demand for collaborative management software in the overall market.
With the continuous support of many factors, the company is expected to maintain rapid growth. The capacity of Xinchuang product line is further expanded. In recent years, the company has released Xinchuang products a8-n and g6-n, which can fully adapt to Xinchuang technology and meet the requirements of insurance and reinsurance, and the official documents meet the national secret and national standard standards. From the perspective of orders, the company's Xinchuang orders have increased several times. The channel of the company adopts the "direct selling + distribution" mode, with 46 direct branches, products covering more than 30 key industry fields, serving more than 40000 large and medium-sized enterprises, and the number of end users has reached 18 million. At the same time, the company's head office and branch company model can better enter projects with high privacy requirements of large enterprises, and the company is expected to grow in a clockwise cycle. At the same time, the company launched a low code platform to improve the standardization ability of products, expand products to the cloud, and bring scale benefits to multi product online cloud. At the same time, the company integrates industrial resources and ecological construction to enable the long-term development of the company's products. Continue to be optimistic about the company's "product platform ecology" development model.
Investment advice company is a leading enterprise in China's collaborative management software. Its flagship product lines A8, G6 and A6 are expected to benefit from the improvement of market concentration, the increase in order volume brought by industry information innovation (short-term), and SaaS mode continuously enables the company's product stickiness and cash flow (long-term). We believe that the company is expected to gain more stock market space by virtue of its leading position and enable the digital transformation of downstream enterprises. It is expected that the company's EPS from 2021 to 2023 will be 1.96, 2.79 and 3.88 respectively, with corresponding PE levels of 37.07x, 26.05x and 18.76x. It will be covered for the first time and given a "recommended" rating.
Risk indicates the uncertainty risk of macro-economy; Uncertainty risk of market competition; Uncertainty risk of product development
