On April 7, 2022, the company released the 2021 performance report and the performance forecast for the first quarter of 2022. In 2021, Gumo achieved net profit of 207 million yuan, an increase of 30% over the previous year; in the first quarter of 2022, Guimo achieved net profit of 35 million yuan to 40 million yuan, an increase of 32%-50% over the same period in '21.
Profit margin optimization in 2021 led to a strong increase in performance, and 2022Q1 performance continued to grow rapidly. 1) 2021: The company actively explores the market while continuously optimizing its business structure and increasing the share of software-related business. According to the calculation of the company's performance report, the company's net interest rate in 2021 was 14%, an increase of about 3 percentage points over 2020.
The company's operating profit, total profit, and net profit of the parent company all grew by more than 30% year-on-year in 2021. 2) 2022Q1:
The growth rate of the company's net profit to the mother was 32-50%, and the net profit growth rate range after deducting the return to the parent was 31-50%. The company's orders in the fields of digital industry, industrial digitization, digital governance, and data element resource application have grown rapidly, and businesses related to the digital economy have become an important engine for the company's development.
At the same time, according to the announcement, the company brought forward some of the performance bonuses issued in the third quarter of previous years to the first quarter this year. After deducting the impact of the performance bonus, the net profit of 2022Q1 returned to the mother increased by about 60% to 80% year-on-year.
According to the general trend of the digital economy, policies catalyze the construction of “one network control”, data governance, etc. to benefit companies. 1) Under policy catalysis, construction prospects such as “one network control” are promising. On March 28, 2022, the Ministry of Housing and Construction issued the “Notice on Comprehensively Accelerating the Construction of Urban Operation and Management Service Platforms”, which proposed that “by the end of 2023, all provinces and autonomous regions will build provincial urban transportation and management service platforms, and cities above prefectural level will basically build urban transportation and management service platforms. By the end of 2025, the “one network management” institutional mechanism for urban operation management will be basically perfected, the efficiency of urban operation and risk prevention and control capabilities will be significantly enhanced, and the level of scientific, refined, and intelligent urban management will be greatly improved.” “One network management” and “grid management” are expected to become the focus of digital economy construction. The company has been deeply involved in the industry for many years, has a leading position, and is expected to fully benefit from policy promotion. 2) Promote “data governance”, and the long-term prospects of L4 intelligent grid vehicles are promising. The company's L4 intelligent grid vehicle is loaded with various data collection devices, collects data in multiple scenarios, calculates relevant data through edge computing capabilities, and transmits the results to the command center, which has the potential to improve the efficiency of urban data management. The promotion of related businesses is also expected to bring about changes in the company's business model, which has the potential for SaaS transformation, while helping to continuously optimize labor costs.
Investment advice: Under the big trend of digital economy construction, the company, as a leading smart city enterprise, is expected to benefit from the promotion of “one network management” and “grid management”; at the same time, the company is promoting “L4 driverless plus operation” to enhance urban data governance capabilities and gradually promote the transformation of its own business model. The company's 2021-2023 EPS is expected to be 0.42/0.57/0.72 yuan, and the corresponding PE is 48X, 35X, and 28X. Considering the company's market position in the smart city sector, iFLYTEK and Wanda Information in the smart city field were selected as comparable companies. The average PE of related comparable companies in 2022 was 42X. Considering the company's advantages in fields such as “one network management” and long-term prospects in the L4 smart grid vehicle field, the “recommended” rating is maintained.
Risk warning: The advancement of new technology falls short of expectations, the impact of the epidemic is uncertain; competition in the industry is intensifying.
