Incidents:
The company released its 2021 annual report on March 17, 2022: full-year operating income of 340 million yuan, an increase of 107.87% over the previous year; Guimu's net profit was 11 million yuan, an increase of 55.9% over the previous year; basic earnings per share were 0.11 yuan/share, an increase of 37.5% over the previous year.
Comment:
Accelerated service development and stability for enterprises is the core driving force of the company's profits. In 2021, the company's enterprise accelerated business achieved revenue of 147 million yuan, an increase of 43.9% over the previous year, and gross margin was 62.67%, which remained at a high level. By the end of 2020, the number of accelerated service customers of the company was 8,662, an increase of 31% over the previous year; of these, year-end contract orders were 67.5618 million yuan, an increase of 166.174 million yuan over the same period last year. The enterprise acceleration business is the core basic business of the company since its establishment. It is deeply integrated with other businesses such as the company's intellectual property services, fiscal and taxation services, FA services, etc., and is committed to improving standardized and digitized enterprise service capabilities.
The enterprise service business has exploded, and the “Enterprise Service SaaS” business has been successfully implemented. The company's corporate services business achieved revenue of 182 million yuan in 2021, a year-on-year increase of 259.34%. In 2021, the company completed a “C to B” strategic upgrade from enterprise to enterprise service. It has initially built a one-stop “enterprise service SaaS” platform covering service fields such as enterprise acceleration, intellectual property rights, specialization, innovation, etc., which combines the digitization of Internet products, cloud service attributes, and strong localized customer service capabilities. In 2021, the company's SaaS model service revenue reached 16 million yuan; the number of enterprise service customers increased by 5,843, an increase of 3484% over the previous year; the amount of new orders added was 145.9 million yuan, an increase of 96% over the previous year, and rapid growth can be expected in the future.
The “specialization, specialization and innovation” policy approach helps the company develop rapidly. Up to now, the company's total services have covered 206 specialized special and new “little giants” at the national level, more than 1,000 specialized, special and new enterprises at the provincial level, more than 2,000 specialized, special and new enterprises at the municipal level, and more than 100 enterprises on the New Third Board. The establishment of the Beijing Stock Exchange and the emergence of a series of policy dividends have brought development opportunities to domestic small and medium-sized enterprises, as well as broad growth space for the company's business.
Investment advice: Since the company's 2021 performance growth exceeded expectations, we raised our profit forecast. We expect the company's revenue for 2022-2024 to be 575/747/1,033 million yuan respectively, and the net profit of the mother is 0.37/0.67/105 million yuan respectively. The corresponding EPS is 0.34/0.61/0.96 yuan, corresponding to PE99.95/54.98/35.11X, and the target price is raised to 45 yuan to maintain the “buy” rating.
Risk warning: macroeconomic fluctuations, policy changes, intensification of industry competition