Summary of events: on April 29, the company released a report for the first quarter of 2021. 21Q1 achieved operating income of 1.567 billion yuan, an increase of 14.76% over the same period last year, a net profit of 20 million yuan, an increase of 40.68% over the same period last year, and 15 million yuan of non-net profit, an increase of 49.73% over the same period last year.
Comments:
The performance has increased steadily and the profitability has improved. Under the background of the rapid development of Xinchuang industry, the company relies on the "cloud + digital + application + ecology" model to speed up business transformation and achieve steady performance growth. Due to the low base last year and the rapid growth of 21Q1's cloud services, big data and other relatively high-margin operating businesses, the profit growth rate of Taiji shares is higher than revenue. The gross and net interest rates of 21Q1 were 24.22% and 1.25% respectively, up 1.41% and 0.28pct respectively over the same period last year.
The project reserve is rich, and the research and development is promoted step by step. The total amount of contracts signed by 21Q1 Company reached 4.667 billion yuan, an increase of 358.87% over the same period last year. At the same time, the amount of contracts to be signed reached 1.07 billion yuan. Since the company's business usually recognizes revenue at the end of the year, from the perspective of the whole year, the company's 21-year revenue is expected to be driven by trust-driven industries to achieve a substantial increase. The company's 21Q1 R & D expenditure rate was 3.27%, an increase of 1.51pct over the same period last year. The increase in R & D expenditure is in line with the company's layout plans in big data, AI, industrial interconnection, cloud computing and other areas.
Value the advantages of the company's customer resources, and the prosperity of the industry is conducive to future development. As the leading enterprise in the field of system integration, the traditional business revenue share has been decreasing in recent years, while the revenue share of cloud services, network security, big data and other businesses has continued to increase. As the core layout of China Telecom's network communication business, Taiji shares, with the support of its parent company, has accumulated a large number of stable high-quality customers in government affairs, national defense and other fields. the company relies on long-term service and in-depth understanding of downstream customers to improve customer stickiness, customer resources constitute a strong barrier to new entrants. Taiji continues to apply new technologies such as cloud computing, big data and AI to customer solutions according to customer needs, and the penetration of new business will further boost the company's profitability.
2020 as the first year of Xinchuang industry, with the acceleration of digital transformation and domestic substitution, the company is expected to rely on the leading system construction and service capacity to achieve accelerated development, further enhance the industry potential, and achieve sustained revenue and profit growth.
Company profit forecast and investment rating: we estimate that the company's net profit from 2021 to 2023 will be 4.56,5.83 and 762 million yuan respectively, and the corresponding EPS will be 0.79,1.01,1.31 yuan respectively. The current share price corresponds to 26 times, 20 times and 16 times the PE respectively. The accelerated development of the Xinchuang industry has brought a broad market space, optimistic about Taiji shares' customer resources and project reserves, and maintain the "recommended" rating.
Risk tips: the development of Xinchuang industry is not as expected; the competition in the industry is intensified; business development is not as expected.
