Incidents:
The company released its 2021 semi-annual report on August 27, 2021: the first half of the year achieved operating income of 99 million yuan, an increase of 70.94% over the previous year; the net profit of the mother was 0.05 million yuan, an increase of 265.08% over the previous year; and the net profit of the mother after deduction was 0.04 million yuan, an increase of 95.13% over the previous year.
Comment:
The company's strategy upgrade has achieved phased results, and business performance has increased dramatically. The company's strategic upgrade in the first half of the year began to bear fruit, and the company accelerated the growth rate of service business development. By the end of June 2021, the number of accelerated service customers of the company was 2,800, an increase of 366.67% over the same period last year; year-end contract orders were 69.78 million yuan, an increase of 201.95% over the same period last year. While the number of service customers increased dramatically, revenue and operating costs increased year-on-year in the first half of the year, up 98.53% and 108.37% respectively over the same period last year.
The number of enterprise service business customers increased more than fivefold, and contract orders were full. The enterprise service products sold by the company have low customer acquisition costs, strong service stickiness, and the corporate customer service cycle has been further lengthened. The company's cumulative number of corporate service customers in the first half of the year was 5,726, an increase of 536.22% over the previous year; contract orders at the end of the period were 109 million yuan, an increase of 203.94% over the previous year. Among them, the new science and innovation intellectual property business developed rapidly, achieving revenue of 8.282,700 yuan within three months, accounting for 23.61% of the total corporate service revenue, and added 264.934 million yuan in contract orders. According to estimates, China's intellectual property service market will be about 210 billion yuan in 2020, and by 2024, China's enterprise service market will reach 75 trillion yuan. The company's science and innovation intellectual property products have broad room for growth, and the share of enterprise service revenue is expected to gradually increase.
Investment in R&D has increased dramatically, and SaaS service construction has been implemented. The company has vigorously stepped up the construction of online platforms, fully implemented SaaS service construction, and deeply integrated enterprise acceleration services, science and innovation services, intellectual property, and big data and ecological resources. SaaS software has the advantages of low cost, data sharing, and high security. According to iResearch's forecast, China's SaaS market will exceed 100 billion yuan in 2022. The company has formed an R&D team of more than 100 people, and R&D investment increased 207.96% year-on-year in half a year. It is expected that the SaaS-based service system will be launched in the third quarter of 2021.
Investment advice: We forecast that the company's revenue for 2021-2023 will be 308/5.15/673 billion yuan respectively, corresponding to PS7.02/4.20/3.21X, the net profit of the mother will be 0.24/0.32/053 million respectively, and the corresponding EPS will be 0.22/0.29/0.49 yuan, which will be covered for the first time, giving a “buy” rating.
Risk warning: Online business progress falls short of expectations, macroeconomic fluctuations, increased industry competition