In 2021, the company's main business continued to grow. On the basis of stabilizing the SaaS business for small and medium-sized e-commerce, the company further expanded its service business and achieved outstanding performance for large merchants and enterprises. At the same time, the company's R&D investment continues to increase, strengthening the core competitiveness of its products, and is expected to further open up market space and accelerate growth in the future. A target price of 8 yuan was given and adjusted to a “hold” rating.
Matters: On April 7, the company released its 2021 annual report: revenue of 545 million yuan in 2021, an increase of 7.0% over the previous year; during the period, the net profit of the mother was 595.384 million yuan, a year-on-year decrease of 163.6%, and the non-net profit of the mother deducted was 903.1116 million yuan, a year-on-year decrease of -308.2%. The decline in the company's net profit is mainly due to the intensive construction of sales channels and the continuous investment of industry and research forces under the acceleration of e-commerce SaaS strategies of the company's major merchants.
Overall performance was in line with expectations, and SaaS products became the main source of revenue growth for the company. In 2021, the company's SaaS products achieved revenue of 412 million yuan, an increase of 15.0% over the previous year. Among them, the revenue growth rates of the two major core merchants SaaS and enterprise services sectors rose, up 133.3% and 54.2% respectively; supporting hardware achieved revenue of 656.1221 million yuan, an increase of 2.4% over the previous year; CRM SMS achieved revenue of 25.598 million yuan, a year-on-year decrease of 38.3%; operating services achieved revenue of 42.6891 million yuan, a year-on-year decrease of 9.6%.
Continue to develop the SaaS business of small to medium e-commerce and dig deeper into the development value of multiple platforms. The company's SaaS products continue to serve micro, small and medium-sized e-commerce, and continue to promote the upgrading and iteration of core products. As a model for the company's multi-platform SaaS product, Courier Assistant's revenue continued to grow during the reporting period. In 2021, Courier Assistant's revenue on the Pinduoduo platform increased 31.3% year-on-year; the share of courier assistant revenue increased to 44.2% from 37.9% in 2020. At the same time, the company increased investment in social e-commerce platforms such as Douyin and Kuaishou, and revenue from multiple platforms showed rapid growth.
Major businesses' strategies have made significant progress, and enterprise services are expanding at an accelerated pace. 1) SaaS products from big merchants: Starting in 2019, the company began to lay out products from big merchants one after another. In 2021, sales and revenue of major merchants both exceeded 100 million yuan for the first time in 2021. Among them, Kuaimai ERP is the main product in its Kuaimai series targeting medium and large merchants, and the number of effective paying users increased 90.8% year-on-year at the end of 2021. It is expected that in the future, the company will still use Kuaimai ERP as a key product for R&D investment and marketing promotion to further increase sales scale. 2) Enterprise service SaaS products: Beginning in 2020, more and more enterprises began using online collaborative office software such as DingTalk, which promoted the rapid growth of enterprise office SaaS services such as related financial/CRM/tomato forms.
Continue to increase investment in R&D and build a national marketing system. In 2021, the company increased the construction of marketing channels. For SaaS products from large merchants, the company has initially completed the construction of a direct sales team system and completed the construction of direct sales teams in nearly 30 cities across the country; at the same time, the company has increased investment in product development represented by SaaS products from large merchants. In 2021, the company invested a total of 160 million yuan in R&D, an increase of 49.8% over the previous year; as of December 31, 2021, the company had 711 R&D personnel, accounting for 30.9% of the total number.
Risk factors: Big merchants and multi-platform strategies fall short of expectations; merger and acquisition business integration falls short of expectations.
Investment advice: Currently, the company's SaaS products form a product matrix that combines front and back ends and continues step by step.
In view of the company's increased investment in R&D and sales, the overall investment period is in a strategic investment period. The company's 2022-2023 revenue forecast was adjusted to 592/642 million yuan (the original forecast was 851/1,063 million yuan), the 2024 revenue forecast was increased by 695 million yuan, the 2022-2023 net profit forecast was adjusted to -0.28/-09 billion yuan (the original forecast was 125/172 million yuan), and the 2024 net profit forecast was increased by 18 million yuan. Adjusted to the “hold” rating. Referring to the valuation levels of the overseas comparable company Shopify, China Youzan and Weimeng Group in China, were given 5X PS in 2022, corresponding to the target price of 8 yuan.