Incidents:
The company released its 2021 semi-annual report. During the reporting period, the company achieved revenue of 98.97767 million yuan, an increase of 70.94% over the previous year, and achieved net profit of 5.272,200 yuan to the mother, an increase of 265.08% over the previous year. The performance exceeded expectations.
Comment:
1. The results of the strategic upgrade have been shown, the main business has performed well, and the new business has grown rapidly.
Revenue for the first half of 2021 was 98.97767 million yuan/ +70.94%, gross profit of 52,5815 million/ +60.47%, net profit of 5.272,200 yuan/ +265.08%. Among the main business, enterprise acceleration services (strategic management consulting services for business founders) had revenue of 60.264,400 yuan/+98.53%, gross profit margin of 50.79% /-2.33pct, enterprise services (urban development services, science and innovation services, marketing services and other enterprise services, etc.) revenue of 3.5799,500 yuan/+54.57 million yuan/+54.57 %, gross profit margin 52.28% /-0.32pct. Among them, science and innovation intellectual property services achieved revenue of 8.2827 million within three months, accounting for 23.61% of the total corporate service revenue, and grew rapidly. By the end of the 21H1 period, the number of accelerated service customers of the company was 2,800 /366.67%, the number of contract orders at the end of the period was 69.78 million yuan/201.95%; the number of corporate service customers of the company was 5,726/ 536.22%, and the final contract order was 109.222 million yuan/203.94%.
2. With full coverage from the “C” end to the “B” end, enterprise services have become the new engine of growth. In H1 in '21, the company used its platform advantages to integrate government and enterprise resources to provide industrial resources and related enterprise service application tools for small and medium-sized enterprises, and achieved a comprehensive extension from enterprise acceleration services to serving small and medium-sized enterprises. By the end of the 21H1 period, out of more than 4,000 “specialized, special and new enterprises” in the country, the company had served 106, becoming the leading enterprise serving “specialized, special and new enterprises” in China.
3. The service results were recognized by the market, customers grew rapidly, and Heima member companies raised more than 10 billion yuan in 2021H1. The customer groups that the company serves - member companies of Dark Horse, there is no shortage of domestic leaders in various fields. Results for the first half of the year continued to be good. 59 companies were invested, 77% of projects were in Series A and above. Representative companies include Yun Xuedang, which received $190 million in Series E financing, Cook-chuan Food received 300 million US dollars of financing in Series D, and Lingjian received 100 million US dollars in Series D financing.
4. The “Hundred Cities Plan” is beginning to show results, and the scale effect has helped the business develop rapidly. The company has built a business network with Beijing as its headquarters to Tianjin, Guangzhou, Chongqing, Nanjing, Qingdao, Xiamen and other regions. Up to now, there are 59 companies and offices per city, forming a strong scale effect, creating a system of “media to traffic”, “from online to offline”, and “from community operation to urban sinking”.
5. Executives changed equity incentives were implemented, and corporate governance remained dynamic. In May 2021, the company granted restricted equity incentives to 29 core business (technical) personnel. The grant price was 1,785 yuan/share. The performance assessment targets for the next three years were 21/22/23, respectively, with revenue of no less than 300 million yuan/500 million yuan/800 million yuan, or net profit of no less than 20 million yuan/30 million yuan/50 million yuan. In July 2021, Huang Wei took over the company's general manager, injecting new vitality into the company's development.
6. Science and innovation empowers enterprises to grow, creates a second growth curve, and SaaS services are promoted as the company's key strategy. In order to further improve service efficiency and offset the impact of the pandemic on offline business scenarios, while maintaining the core advantages of the original offline service, the company increased online platform construction. SaaS R&D invested 155.855 million/+207.96% in the current period. The SaaS service system will be launched in the third quarter. It is expected that the company's share of enterprise service revenue will continue to increase in the future.
Investment advice: Based on expectations for the rapid growth of the company's main business, we expect to achieve net profit of 29 million/47 million yuan in 22/23, YOY 59.52%/62.79%, corresponding to dynamic PE: 75/46x, initial coverage, and a “recommended” rating.
Risk warning: SME support policies have changed, the company's digitization process has fallen short of expectations, repeated epidemics