Company Announcements 2022 Annual Report and 2023 Quarterly Report:
1) In 2022, the company achieved operating income of 347 million yuan, an increase of 2.13% over the previous year; the net profit of the mother was 84 million yuan;
2) In the first quarter of 2023, the company achieved operating income of 48 million yuan, a year-on-year decrease of 51.34%; the net profit of the mother was 11 million yuan.
Comment:
The 2022 pandemic affected some offline business delivery, temporarily hampering performance.
The company's main business includes training (enterprise acceleration) and enterprise services (urban development, intellectual property rights, fiscal and taxation services, etc.). Among them, the enterprise acceleration service and urban expansion business were greatly affected by the epidemic in 2022. Some offline scheduling, delivery and project acceptance were affected by objective external factors, but the overall revenue scale continued to grow, mainly thanks to the company's strength in enterprise service SaaS services, fiscal and taxation services. In 2022, the company's comprehensive gross margin was 28.35%, a year-on-year decrease of 18.3pct, mainly due to the fact that the newly expanded enterprise service SaaS, intellectual property and other businesses were in a growth period, and there was a certain amount of cost investment in the early stages.
In terms of cost rate, the company's sales/management/R&D/financial expenses ratio in 2022 was 24.3%/28.2%/4.02%/-3.1% respectively, up -0.49/4.5/0.6/-0.1pct respectively. Among them, the management fee rate increased significantly, mainly due to the implementation of the company's equity incentive plan and the increase in related expenses.
The business has been fully upgraded, and the SaaS transformation of enterprise services has achieved remarkable results and has become a new revenue growth point.
The company's business strategy was upgraded in the second half of 2021, and the enterprise service innovation business grew rapidly. Judging from the revenue structure of 2022:1) Traditional enterprises accelerated business revenue by 94 million yuan, a year-on-year decrease of 36.0%, accounting for 27.2% of revenue. 2) Enterprise service business revenue was 242 million yuan, an increase of 33.4% over the previous year, accounting for 69.8% of revenue. Further refinement, the revenue from urban expansion/marketing services/SaaS model services/fiscal and taxation services/intellectual property services was 0.15/0.11/0.45/1.36/34 billion yuan respectively, up -72.2%/-12.5%/190.8%/74.9%/55.8%, respectively. The “business enterprise service, enterprise service SaaS” strategy proposed and vigorously implemented by the company in recent years is a strong support for building the company's science and technology innovation service platform position in the context of the future era of the main industry chain. According to the company announcement, the number of corporate service customers of the company increased by 6,793 in 2022, an increase of 16.26% over the previous year; the amount of new orders was 176 million yuan, an increase of 20.34% over the previous year.
Focus on the independent industrial chain, and focus on the implementation of the company's government-enterprise cooperation and cooperation with Ali Damoyuan.
Over the years, the company has closely followed policy calls and industry trends, and has always served small and medium-sized enterprises, from double innovation services to specialized innovative services. After years of accumulation of resources on the industrial side and government side, the company gradually established the product advantages of the B+G double to form a healthy closed loop of business. For G-side (local governments, high-tech parks) and big B-side (central enterprises, industry leaders), we provide industrial accelerator products that integrate comprehensive services such as industrial research, project screening, accelerated incubation, investment operation, and industrial ecosystem cultivation; for small B-side (accelerator student enterprises), through local government policy support+leading enterprise industrial resources and capital connection+company acceleration service system empowerment, so that G-side +B-side is charged in both directions. Beginning at the end of 2022, the company has begun to lay out its business in the direction of new technology or the digital economy. According to the company announcement, the company, Beijing Chaoyang International Science and Technology Innovation Service Company (an enterprise under the Chaoyang District State-owned Assets Administration Commission) and Beijing Pioneer jointly funded the establishment of a subsidiary, Digital Intelligence Cloud Technology, to strengthen cooperation with the Chaoyang District Government and build a first-class domestic digital human acceleration base. At the same time, the company's subsidiary Shuzhiyunke plans to cooperate with Alidamo Academy to be responsible for the targeted promotion of the “Magic Play Community” upstream and downstream of the digital human resources industry, as well as the development of a series of training courses in cooperation with the “Magic Play Community”. The course content will be provided by Dharma Academy.
Investment advice: The company provides full-link one-stop enterprise services and science and innovation services for small and medium-sized enterprises where A-shares are scarce. The huge customer base, good government partnerships, and SaaS service system have brought natural advantages to the expansion of the company's science, innovation, intellectual property and other service businesses, and the new business is becoming a new growth point. We expect the company's revenue for 2023-2025 to be 540/713/906 million yuan respectively, with a corresponding growth rate of 55.5%/32.0%/27.1%; net profit of 0.58/0.88/120 million yuan respectively. The valuation of the company's various businesses was added up through the segmented valuation method (in 2023, 30 times PE corresponds to a valuation of 900 million yuan, and the enterprise service business 10 times PS corresponds to a valuation of 4 billion yuan). In the end, we gave the company a valuation of 4.9 billion yuan in 2023, corresponding to a target price of about 30 yuan, maintaining the “buy-A” rating.
Risk warning: Market competition intensifies, the impact of industry regulation and market management on the company's business growth, and new business expansion falls short of expectations.