Should be "digital Fujian" born, high-speed growth of government information manufacturers. Booz Software was founded in 2001, starting from the separation of school fees, the electronic construction of financial bills and other business. The company has what to do and what not to do, focus on subdivided areas, cut into the government fund management system on the basis of electronic bill business, and gradually expand the scale of revenue. Since the company went public in 2016, its revenue has increased about 9 times, and the total number of employees has increased from 600 to more than 5000, making it a fast-growing government IT star.
Excellent management team leads the way and brings together talents to seek the development of the company. A distinctive feature of Booz lies in the open and inclusive mentality and excellent leadership of the management team represented by the chairman, Mr. Chen Hang. When Booz went public, the shareholders were all employees of the company. after the listing, Booz recruited many excellent IT teams in the industry through a series of acquisitions, and the management achieved good integration under the background of the rapid expansion of the number of teams.
In-depth mining of non-tax and electronic bills, financial IT and electronic acquisition are ready to start. From a business perspective, Booz currently forms the cornerstone business (non-tax and electronic bills), the second growth engine (financial IT and electronic acquisition), and nurtures and explores (smart city and digital countryside), with clear growth logic. Among them: 1) non-tax and electronic bills, the reform of electronic bill management is strongly promoted in the fields of administrative institutions' payment, medical care and education, while the financial side, bank channel side and industry side all need to build and upgrade the corresponding IT system. Booz has become the leader of non-tax and electronic bills by virtue of its obvious first-mover advantages. 2) Financial IT plate, the company won the financial cloud construction project in Shaanxi Province in 2018 and became a benchmark case for financial digital transformation, which was recognized and adopted by the Ministry of Finance, became one of the follower models recommended by the Ministry of Finance to local provinces, and became an integrated budget management contractor of the Ministry of Finance in 2021. By 2022, the company has undertaken ten or more provincial-level cases, including the Ministry of Finance, Shaanxi, Jilin, Heilongjiang, Inner Mongolia, Fujian, Hubei, Guangdong and Shanghai, which are expected to become a new growth point. 3) Electronic recruitment, mainly divided into government, universities, enterprises and financial technology four major areas, government recruitment has won 7 provinces, and the enterprise market space is broader.
Under the digital economy, the government affairs IT strides forward to digitalization. The Digital economy Development Plan of the 14th five-year Plan issued by the State Council at the beginning of 2022 defines the digital economy as the main tone of future economic development, in which the number of real-name users of online government services has doubled to 800 million by 25 years. Booz is the witness and builder of the construction of government IT, the business layout closely follows the direction of government information, and is expected to fully enjoy the digital dividend of government affairs under the guidance of digital economy.
Investment suggestion: the company's revenue in 22-24 is expected to be 19.0,25.9 and 3.52 billion yuan respectively, with a year-on-year growth rate of 21%, 37% and 36% respectively, and the return net profit is 2.8,4.1 and 560 million yuan respectively, with a year-on-year growth rate of 20% 49% and 36% respectively. The current market capitalization corresponds to 46,31,23 times of PE in 22,23,24 years. Taking into account Booz's leading position in the field of government information segmentation and the smooth development of new business territory, the company's 22-24 growth rate is worth looking forward to, maintaining the "recommended" rating.
Risk tips: the intensification of the epidemic leads to a decline in government IT expenditure; the intensification of industry competition leads to a decline in gross profit margin; and the progress of enterprise-level public mining development is not as expected.