Events:
The company announced the third quarterly report of 2021: in the first three quarters of 2021, the company realized revenue of 392 million yuan, an increase of 94.85% over the same period last year, a net profit of 38.2 million yuan, an increase of 258.13% over the same period last year, and a non-return net profit of 21.77 million yuan, an increase of 193.43% over the same period last year.
Comments:
1. the growth of the performance accelerated in the third quarter, and the outlook for the whole year is optimistic.
The company's Q3 revenue in a single quarter was 184 million yuan, up 56.91% over the same period last year; the net profit returned to the mother was 52.28 million yuan, down 4.33% from the same period last year; and the non-return net profit was 52.22 million yuan, an increase of 60.5% over the same period last year, and the company's Q3 performance returned to high growth. Due to the seasonal characteristics of bidding procurement of downstream government, telecommunications, finance and other customers, the company's revenue accounted for a relatively high proportion in the fourth quarter. In 2020, the company's Q4 accounted for 68.5% of the company's single-quarter revenue.
Under the background of party and government + industry innovation, we are optimistic about the company's annual performance.
2. The fixed increase audit restarts, and China Mobile Capital takes a stake in the strategy.
On September 29, the company announced that it would restart the additional audit. According to the fixed increase plan updated by the company on October 20, Huang Yongjun, chairman of the company, plans to subscribe for about 499.8 million yuan and 349.1 million yuan respectively. China Mobile Capital will participate in the fixed increase as a strategic investor, with a lock-up period of 36 months. On August 11, the company signed a "Memorandum of Strategic Cooperation" with China Mobile Limited and China Mobile Capital. The company will cooperate with China Mobile Limited in business complementarity, market development, product and solution research and development, and technology research and development. during the three-year strategic agreement period from 2022 to 2024, China Mobile Limited brought the company a total of no less than 2 billion yuan in new contracts (including orders).
3. The synergistic effect between the company and China Mobile Limited is significant.
We believe that there is obvious synergy between the company and China Mobile Limited: on the one hand, telecom operators are important customers of the company, and company middleware and industry security products can all be applied to China Mobile Limited. In 2020, China Mobile Limited purchased Dongtong middleware products worth 19 million yuan and network letter products worth 125 million yuan. On the other hand, facing the external market, China Mobile Limited can provide basic software products consignment services for the company, jointly expand customers and markets in related industries, and help the company's products to be applied to information integration projects in vertical industries such as party and government, finance, energy, transportation, public utilities and so on.
Profit forecast and investment advice: we maintain our previous profit forecast. We expect the company's revenue from 2021 to 2023 to be RMB 974x1302, respectively, and its net profit to be RMB 401max. The net profit is RMB 507x80m, corresponding to the current market value of PE is 340pm, 24.08max, 17.07 times, maintaining the "buy" rating.
Risk hints: industry competition intensifies; the progress of innovation process and localization substitution is lower than expected; the progress of fixed increase project is still uncertain; the progress of cooperation with China Mobile Limited is not as expected.