A leading enterprise in the national financial information technology industry, its performance has maintained a rapid growth trend since its listing. Fujian Boss Software Co., Ltd. was established in 2001 and listed on the Shenzhen Stock Exchange GEM in 2016.
In 2016-2022, the CAGR of operating income was 49.60%, and the CAGR after deducting non-return net profit was 36.15%, and growth was outstanding. The company focuses on the fields of electronic financial notes and non-tax revenue, smart government finance, digital procurement, smart cities+digital villages, and innovatively uses cutting-edge technologies such as big data, blockchain, and artificial intelligence to help the government innovate new models of urban governance and promote the digital upgrading of the industry. After years of development, the company has grown into a leading enterprise in the national financial information technology industry.
Policy reforms continue to advance, and the integration of digital bill reform and budget management 2.0 opens up room for growth. In the field of financial electronic bills and non-tax revenue business, the company relies on innovative applications of advanced information technology such as blockchain and artificial intelligence, and continues to deepen the innovative application of the SaaS model to provide enterprises and institutions with collaborative solutions for the entire life cycle of “billing, payment, invoicing, circulation and reimbursement”. There is plenty of room for continuous growth in the future. In April 2023, the Ministry of Finance issued the “Integrated Budget Management Specification (2.0 Edition)”, which puts forward requirements for speeding up the expansion of the scope of integrated budget management services, effectively implementing unified business standards into the integrated system, and strengthening integrated budget management publicity and business training. The company's smart finance business will develop from Budget 1.0 to 2.0 and Phase II, adding modules and big data fields, and expanding to budget units with a wider market space.
The penetration rate of digital procurement is low. The company actively uses AI technology to enable digital procurement. According to the “2023 Digital Procurement Development Report” jointly issued by the Public Procurement Branch of the China Federation of Logistics and Purchasing and Yibang Think Tank, China's total e-commerce procurement volume in 2022 was 14.32 trillion yuan, and the digital procurement rate was 8.26%. The development momentum of China's digital procurement market is sufficient. In terms of government procurement, governments at all levels are deepening the reform of procurement systems, vigorously developing electronic procurement, building a “national network” electronic government procurement store, and improving the efficiency and transparency of government procurement. The company actively explores AI+ intelligent procurement, and the “Xiaobo Procurement Robot” launched can effectively reduce procurement costs and improve management efficiency.
Profit forecasting and investment advice
Looking forward to the future, the company will strive to become the country's leading government+ Internet service provider, so that hundreds of millions of people and millions of enterprises can enjoy high-quality Internet services. The company's revenue for 2023-2025 is estimated to be 24.28, 30.19, and 3.666 billion yuan, net profit to mother of 341, 4.56, and 584 million yuan, EPS of 0.45, 0.61, 0.78 yuan/share, corresponding PE of 29.97, 22.46, and 17.53 times. Considering the prosperity of the industry and the company's room for continued growth in the future, it was recommended for the first time and given a “buy” rating.
Risk warning
Market competition risk; industry policy risk; risk of core technology leakage and loss of core technical personnel; risk of developing new business or new fields; risk of large accounts receivable balance; risk of impairment of goodwill.