\u3000\u3000 Guangzhou Sie Consulting Co.Ltd(300687) (300687)
Event:
The company issued the performance forecast for 2021 after the closing on January 20, 2022.
Comments:
The company continues to improve its productization capacity, and its revenue is expected to increase by 33.54% – 43.65% year-on-year in 2021
In 2021, the company expects to achieve an operating revenue of RMB 1.850-1.990 billion, with a year-on-year increase of 33.54% – 43.65%; The net profit attributable to the parent company is expected to be RMB 215-250 million, with a year-on-year increase of 22.11% – 41.99%; It is expected to realize a net profit of RMB 200-235 million, a year-on-year increase of 23.04% – 44.57%. In 2021, the company will continue to improve its product capability in industrial software and digital middle stage. At the same time, the company continues to implement the strategy of regional expansion and market leadership, further strengthens the in-depth cooperation with ecological partners, continuously connects external resources, enhances customer stickiness and optimizes the revenue of each business segment.
Industrial software has ushered in development opportunities, and the company’s intelligent manufacturing self-developed products continue to be in large quantities
Domestic industrial software is ushering in great development opportunities, and the market space is unprecedented broad. According to the data in the statistical yearbook of China’s Electronic Information Industry issued by the operation monitoring Coordination Bureau of the Ministry of industry and information technology, the scale of China’s industrial software market reached 172 billion yuan in 2019, an increase of 16.45% over 2018, and an average increase of more than 15% in the past three years. The company launched industry suite solutions in core industries such as electronics and PCB to improve the code reuse rate and reduce the overall implementation cycle; At the same time, s-mom, a family of self-developed integrated industrial management software products, continued to increase in volume and revenue share. From 2017 to 2020, the compound growth rate of intelligent manufacturing revenue reached 77.84%, and the proportion increased from 10.36% to 29.83%. The gross profit margins of the sector in recent three years were 29.97%, 31.56% and 41.03% respectively. In the first half of 2021, the company’s intelligent manufacturing business realized a revenue of 219 million yuan, with a year-on-year increase of 93.93%. It is expected to continue to maintain a rapid growth trend throughout the year.
We successfully raised 650 million yuan through fixed increase to share technology and China Taiwan strategy to enhance our core competitiveness
In December 2021, the company issued the announcement on the listing of A-Shares issued by gem to specific objects, and successfully issued 27083300 A shares to specific objects, with the issue price of 24.00 yuan / share, the total amount of funds raised was 650 million yuan, and the net amount of funds raised after deducting the issuance expenses was 638 million yuan. The raised funds are intended to be used for the “enterprise digital solution upgrading project based on shared technology platform” (with a total investment of 718 million yuan). The company will develop and build a Saiyi shared technology platform that can adapt to the development and deployment of various enterprise applications and support flexible expansion, and based on the platform for intelligent financial applications The independent solutions of digital marketing application and digital supply chain application are developed and managed uniformly to form application products that adapt to various business scenarios and support rapid deployment, so as to improve the core competitiveness of the company.
Investment advice and profit forecast
The company’s intelligent manufacturing business has developed rapidly. Over the years, it has accumulated a large number of high-quality customers, gradually increased the volume of self-developed products and gradually improved its profitability. It is predicted that the company’s operating revenue from 2021 to 2023 will be RMB 1878 million, RMB 2486 million and RMB 3270 million. Referring to the performance forecast of 2021, the net profit attributable to the parent company is slightly adjusted to RMB 236 million, RMB 331 million and RMB 465 million, and the EPS is RMB 0.59, 0.83 and 1.17/share, corresponding to 49.68, 35.42 and 25.18 times of PE. In the past three years, the company’s PE has mainly operated in the range of 25-60 times. At present, the pettm of the computer (Shenwan) index is 54.6 times, giving the company 45 times the target PE in 2022, and the corresponding target price is 37.35 yuan. Maintain the “buy” rating.
Risk tips
Covid-19 recurrent pneumonia; The demand of key customers decreases due to the impact of external environment; The promotion of intelligent manufacturing business is less than expected; The promotion of self-developed products is less than expected; High accounts receivable; Industry competition intensifies.
