Event: Dongtong released its quarterly report for 2022 on April 25, 2022. In the first quarter of 2022, the company achieved operating income of 79 million yuan, a decrease of 47.30% over the same period last year. Its net profit was-47 million yuan, a decrease of 289.49% over the same period last year, and its non-return net profit was-50 million yuan, down 679.14% from the same period last year. The performance was lower than the market expected.
Main points of investment
The year-on-year base is high, paying attention to the long-term growth value of enterprises: under the background of epidemic factors and high base, corporate contract signing and revenue growth in 2022 are affected. The large Q1 base in 2021 is mainly due to the fact that Q4 is the peak of bidding for the party and government in 2020, and part of the revenue is confirmed to Q1 in 2021. In 2021, the tender released evenly throughout the year, and there was no similar backlog of unreceived orders, so Q1 revenue declined in 2022 compared with the same period last year. From the long-term perspective, from Q1 in 2020 to Q1 in 2022, the company's annual revenue compound rate is 78%, which has achieved relatively rapid growth. We should pay attention to the long-term growth value of the company.
The increase of senior executives shows confidence and promotes the healthy development of the company: on April 25, 2022, Huang Yongjun, the actual controller, chairman and general manager of the company, and Xu Shaopu, director, deputy general manager, financial director and secretary of the board of directors, plan to increase their holdings in the company within six months from May 2022. At present, Huang Yongjun and Xu Shaopu hold 7.89% and 0.12% of the shares of the company respectively, and plan to increase their holdings by 27 million yuan to 45 million yuan and 3 million yuan to 5 million yuan respectively, with a total increase of not less than 30 million yuan and no more than 50 million yuan. This plan is based on the company's confidence in future performance and the long-term investment value of the company's shares, which is conducive to stabilizing the interests of the capital market and investors and promoting the sustained and healthy development of the company.
Xinchuang market server is expected to usher in volume, and the company will fully benefit: in 2022, the industry Xinchuang will be rolled out in an all-round way, and the rhythm of Xinchuang in the financial and telecommunications industry is expected to exceed market expectations, especially the demand for Xinchuang server will be significantly improved. server volume will also bring a substantial increase in the demand for middleware. Dongfang Tong benefits most as the market leader of middleware Xinchuang. While maintaining the advantage of the party and government in creating the market, Dongfang Tong is expected to achieve further breakthroughs in the financial and telecommunications industries in 2022.
Profit forecast and investment rating: Dongtong, as the leader in the domestic middleware industry, has a leading product performance and a solid position in the industry. we think that we should not pay too much attention to the changes in quarterly performance and value the growth of the company in the long run. Based on this, we maintain Dongfang Tong's 2022-2024 homing net profit forecast of 3.17 gambit 4.05 / 535 million yuan, maintaining the "buy" rating.
Risk hint: the promotion of localization policy is not up to expectations; the intensification of competition in the industry leads to a decline in product prices.