\u3000\u3000 Guangzhou Sie Consulting Co.Ltd(300687) (300687)
The company announced the performance forecast for 2021: the annual revenue was 1.85-1.99 billion yuan, with a year-on-year increase of 33.54% – 43.65%; The net profit attributable to the parent company was 215-250 million yuan, with a year-on-year increase of 22.11% – 41.99%; Deduct non net profit of RMB 200-235 million, with a year-on-year increase of 23.04% – 44.57%.
Compared with the growth rate in the third quarter:
(1) 2021q3: the revenue was 500 million yuan, with a year-on-year increase of 18.20%. The net profit attributable to the parent company was 77.24 million yuan, with a year-on-year increase of 21.78%. The non net profit deducted was 75.56 million yuan, with a year-on-year increase of 21.48%.
(2) 2021q4: RMB 483-623 million, with a year-on-year increase of 13.45% – 46.33%, and the net profit attributable to the parent company was RMB 82.62 million-117.62 million, with a year-on-year increase of 24.35% – 77.03%. As the company mainly serves enterprise customers, the seasonal difference of business is not obvious. In the fourth quarter, under the influence of China’s power rationing and epidemic situation, the company’s performance was stable and improved compared with Q3, and the overall performance met expectations.
Development of two major businesses:
(1) the company was originally engaged in the ERP implementation of Oracle, and the acquired Jingtong technology is an ERP implementation enterprise of SAP. In recent years, influenced by China US relations, enterprises have more choices to switch from Oracle to sap. At present, the company has the largest SAP implementation team in China. At the same time, through the layout in the middle stage, the company has the business ability to provide customers with digital procurement management and digital marketing management in the upstream and downstream of the supply chain, which will continue to empower the company’s Pan ERP business.
(2) as an ERP implementation enterprise, the company has entered a faster development track through the transformation to the field of industrial Internet. Compared with the business of ERP manufacturers and industrial software manufacturers in the first three quarters, it can be seen that the performance growth rate of the company among ERP manufacturers is second only to Mingyuan cloud, while the performance of industrial software is very excellent driven by industry demand. The company has a strong service capacity in the field of electronic high technology. At the same time, it will expand its business to equipment manufacturing and pharmaceutical manufacturing in 2022. It is also expected to take the lead in realizing the centralized layout in subdivided industries with the help of financing projects.
According to the digital economy development plan of the 14th five year plan issued by the State Council recently, “application penetration rate of industrial Internet platform” has become one of the eight key assessment indicators in the development of digital economy during the 14th Five Year Plan period, which indicates that intelligent manufacturing has become a digital application field promoted by the government in the future and is expected to receive more policy support in the future.
The Growth Logic of the company in the future, in addition to the industry prosperity driving revenue growth, the more important thing is to increase the proportion of revenue of independent software and drive the improvement of overall profitability and competitive strength. Especially with the continuous improvement of the company’s proportion of intelligent manufacturing and gross profit margin, we can see that its overall contribution to profitability is actually increasing.
Based on South China, the company is expanding East China into the second largest business base, realizing regional business replication, and will also become an important development engine in the next few years. In 2022, the company will also expand in Central China and further strengthen its business coverage.
Since its listing in August 2017, the company has successively invested 440 million, 320 million and 650 million in key areas such as intelligent manufacturing, middle platform and industrial Internet through IPO, convertible bonds and fixed increase, which is expected to take the lead in the digital transformation of industrial enterprises with the help of capital market.
For the first time, it will cover and give an investment rating of “overweight” to the company. We estimate that the company’s EPS in 21-23 years will be 0.62 yuan, 0.87 yuan and 1.21 yuan respectively. Calculated according to the closing price of 30.45 yuan on January 24, the corresponding PE will be 48.81 times, 35.06 times and 25.16 times.
