The profit growth rate is gradually rising. The company disclosed that its annual revenue in 2021 was 1.481 billion yuan, an increase of 4.71% over the same period last year, of which the system software business accounted for 46.96%, up 34.47%, and the system integration business accounted for 8.28%, down 48.51% from the same period last year. Operational services business accounted for 44.76%, an increase of 0.60% over the same period last year. The net profit of 2021 was 207 million yuan, an increase of 30.29% over the same period last year, the net profit of deducting non-return was 182 million yuan, an increase of 22.98% over the same period last year, the operating cash flow was 102 million yuan, down 54.95%, the gross profit margin of sales was 38.47%, an increase of 5.28pct over the same period last year, the rate of sales expenses was 7.63%, an increase of 14.40% over the same period last year, and the rate of management expenses was 9.07%, an increase of 10.99% The R & D expenditure rate was 6.67%, an increase of 9.73% over the same period last year, and the financial expenditure rate was-1.28%, an increase of 17.66% over the same period last year.

The company recently disclosed that 2022Q1's operating income was 250 million yuan, an increase of 12.01% over the same period last year, and its net profit was 38 million yuan, an increase of 42.90% over the same period last year. The non-parent net profit was 37 million yuan, an increase of 42.08% over the same period last year.

The "Crystal" platform realizes the innovation of urban management. On August 16, 2021, the company officially released the "Crystal" digital twin platform with completely independent intellectual property rights. Relying on the concept of two-way mapping from the physical world to the digital world, the whole elements and the whole process, the "crystal stone" digital twin platform realizes the visual management of three-dimensional space and even underground space by constructing the three-dimensional model of the city in the digital space. Through the introduction of BIM technology, the strength of urban information management is extended from urban components and buildings as a whole to internal construction, which can achieve a complete and comprehensive urban framework from macro to micro, modeling norms at the L1-L5 level, combining urban management areas with actual business requirements, and integrating IoT, video, panoramic, urban business and other data to form a dynamic, highly simulated twin city. Provide a more scientific and intuitive technical platform for urban management, so as to realize the innovation of urban management. As of the disclosure date of the annual report (April 22, 2022), the contract value of related projects has exceeded 200 million yuan.

"Qiji" intelligence is expected to bring new growth points. At the beginning of 2022, the company officially launched a new product, "Qiji" self-driving intelligent networked car. "Qiji", with the "self-driving + AIoT" technology as its core, is a smart grid car with self-driving technology, and it is also an important technological and application innovation breakthrough in the grid management business of Digital political Communications. "Qiji" has realized the low-speed unmanned self-driving business scene of urban operation and data collection, combined with the increasing maturity of self-driving technology and the gradual improvement of the relevant road rights opening policy. Qiji will soon be applied and promoted in cities all over the country. At present, it has reached an intention to test and cooperate with relevant government departments in more than 10 cities, including Beijing, Shanghai, Shenzhen, Fuzhou, Hefei, Luoyang, Zibo and Ya'an. In the future, the company will improve the application scenario of self-driving in the field of urban governance based on the key technologies of "Qiji", combined with the growing needs of users and the market.

The participating company won the bid of 93.11 million yuan. On April 19, 2022, the company issued a notice on the receipt of the bid winning notice by the participating company. The Wisdom (Yiyuan) Urban Construction and Operation Co., Ltd. (49% shareholding) jointly established by the company and Shandong Luzhong holding Group Co., Ltd. received the bid winning notice on April 19, 2022. It won the bid for the first phase of Digital Yiyuan Construction (Phase I) project in Yiyuan County, Zibo City, Shandong Province, with a winning bid amount of 93.1109 million yuan. The main content of this project is to build intelligent applications such as comprehensive urban management service platform and video convergence platform of Yiyuan County through three middle stations of business, AI and IoT, so as to comprehensively enhance the level of urban intelligence of Yiyuan County and build the core base of digital economy of Yiyuan County. This project is a concrete practice for the company to strengthen the cooperative relationship with the local government, realize the combination of industry and finance, and explore the new model of digital economy development, which has an important positive impact on the future development of the company.

Profit forecast and investment advice. 2022Q1 signed a new order of 368 million yuan, an increase of 48.1% over the same period last year. With the gradual acceleration of digital economic construction and digital governance throughout the country, the quantity, quality and scale of newly signed projects have been greatly improved compared with the same period in previous years. These include the social governance project of urban and rural integration in Changfeng County, Anhui Province, with a contract value of about 48 million yuan, the urban comprehensive management service platform project of Jining City, Shandong Province, with a contract value of about 30 million yuan, and the contract value of about 23 million yuan. Beijing Yizhuang Economic and technological Development Zone Urban Operation brain Project and a number of projects with important industry influence. We believe that "one network management" and "grid management" are expected to become the focus of digital economy construction in 2022. We estimate that the company's net profit from the homing of 2022Universe 2023Universe 2024 is RMB 27980,000,000 and EPS is RMB0.56 + 0.72, respectively, giving the dynamic PE of 2022 35-40 times and a 6-month reasonable value range of RMB19.6022.40RMB, giving it an "better than the market" rating for the first time.

Risk hint. The epidemic affects macro expenditure; gross profit margin declines; cash flow worsens.