Event: on April 27, China Holdings released its 2021 annual report. In 2021, the company achieved revenue of HK $20.539 billion, an increase of 3.63% over the same period last year; net profit of 818 million yuan (excluding share payment fees and minority equity effects), an increase of 21% over the same period last year; and a dividend of HK $15 per share, with a total dividend of more than HK $250 million for the whole year.
Comments:
Revenue broke through the 20 billion mark for the first time, focusing on big data's product and solution business. In 2021, the company achieved revenue of HK $20.539 billion, an increase of 3.63% over the same period last year. Of this total, big data's income from products and solutions was HK $2.49 billion, up 28% over the same period last year; gross profit was HK $834 million, up 38% over the same period last year; revenue from software and operating services reached HK $6.643 billion, an increase of 12% over the same period last year, accounting for 32% of the group's total income. Gross profit HK $1.337 billion In addition, the company's strategy focuses on big data's product and solution business, striving to create a "spatio-temporal global data base"-the intelligence center, the intelligence center and the intelligence twins, and strategically shrink the low gross margin business in the traditional service business. revenue reached HK $11.783 billion, down from 60% to 56%; profitability improved, with a gross profit of HK $1.593 billion, an increase of 16% compared with the same period last year.
Big data's income is growing rapidly, his profitability has improved significantly, and he will continue to increase investment in R & D. During the reporting period, big data's product and program revenue increased by 28% compared with the same period last year; gross profit increased by 38% over the same period last year, and the division accounted for 12% of the group's total revenue. Of this total, big data's product sales income was 353 million Hong Kong dollars, an increase of 102% over the same period last year, and the gross profit margin was 83%. Big data's solution sales revenue was 2.137 billion Hong Kong dollars, up 20 percent year-on-year, and gross profit was 541 million Hong Kong dollars, up 17 percent year-on-year. In order to support big data's strategy and business development, he continued to increase R & D investment, with R & D spending of 497 million Hong Kong dollars, an increase of 20% over the same period last year, and a total of 2249 new intellectual property rights, including software copyrights and patents, an increase of 22% over the same period last year.
The CIM platform of "intelligent twins" has landed, and the "spatio-temporal global data base" tends to mature. In 2021, big data's product "Smart Twin" CIM platform landed in Changchun, Jilin Province, allowing spatio-temporal global data to be displayed and applied in urban 3D models to help city managers make decisions through data-driven decision-making. the intelligent twin product family is also an important technical base of meta-universe. In addition, the "spatio-temporal global data base" products created by the company's big data field have matured, enabling core scenarios such as digital native city, digital native supply chain, financial technology, innovation incubation, etc. to provide a full range of big data products and solutions for government and corporate customers.
Investment suggestion: the company has been ploughing government and enterprise customers for more than 20 years, has a deep understanding of China's industry informatization and digital transformation, and has accumulated rich application scenarios, data resources, technical capabilities and ecological partners. In the future, the company will continue to accelerate big data's service strategy, build a more perfect R & D and product system, and speed up the commercialization of big data's products and programs. We estimate that the company's operating income from 2022 to 2024 is 220.33 yuan, 273.17 yuan and 32.503 billion yuan respectively, and the return net profit is 8.57 yuan, 11.37 yuan and 13.99 yuan per share respectively. Maintain a "buy" rating.
Risk tips: market expansion is not as expected; product integration is not as expected; technological innovation is not as expected; the impact of COVID-19 epidemic; macroeconomic decline.