Zhitong Financial APP learned that Soochow Securities issued a research report that maintained Tide International's (00596) "buy" rating. Due to the smooth recommendation process in large state-owned enterprises, revenue in 2022-23 was raised from HK $36.3 / 4.039 billion to HK $51 / 6.469 billion. Revenue is expected to be HK $7.948 billion in 2024, and the current market capitalization corresponds to 0.6x0.4 PS in 2022-24.
The main points of Soochow Securities are as follows:
Better-than-expected results and significant growth in cloud revenue
The total revenue of the company in 2021 was HK $3.916 billion, + 53.2% compared with the same period last year. As the main source of revenue of the company is Chinese mainland business calculated in RMB, which is calculated in terms of RMB, + 42.9% compared with the same period last year, of which the revenue from cloud services is HK $907 million, + 79.1% over the same period last year, and RMB is + 67% compared with the same period last year. Cloud revenue accounts for 23.2% of the total revenue, which has become an important source of income for the company. At the same time, software revenue is 2.242 billion Hong Kong dollars, + 38.5% year-on-year, RMB caliber + 29.2% year-on-year. The high growth rate of the cloud + software business is mainly due to the fact that the company continues to break through the large customers of state-owned enterprises, complete the implementation and delivery on time, and maintain revenue growth. Soochow Securities believes that with the increase of the company's orders in state-owned enterprises, the revenue scale is expected to further breakthrough.
Platform-level products volume, strong product power, benchmarking customers to achieve further breakthroughs
In 2021, the company released a new generation of enterprise PaaS platform wave IGIX3.5, and successively launched large-scale enterprise digital product GSCloud and growth product inSuite to provide comprehensive support for enterprise digital transformation. According to the 2021 China SaaS Market Research report released by Sadie Consultants, Chaoyun ERP occupies the leading camp in China, and GSCloud has won many honors one after another, and helped 20 customers, including China Pharmaceutical and Chinalco Group, win many awards. In 2021, the company continues to deepen the management quality of key customers, further magnifies the advantages of high-end products, and has successively signed contracts for major customers of central enterprises such as China Grain Storage, Dongfang Electric, China Construction and so on. At the same time, help the construction of intelligent enterprises, brand and market influence to further enhance. In the future, with the further improvement of the company's brand power in the central state-owned enterprise market, more benchmarking cases of state-owned enterprises are expected to continue to land, adding new impetus to the company's revenue.
Sustained high investment, optimistic about the company's competitiveness in the market of state-owned central enterprises
The company's R & D expenses in 2021 are HK $460 million, year-on-year + 44.2%, RMB caliber + 34.6%, mainly due to the company's continuous promotion of cloud business transformation and increased investment in R & D of platform-level products; at the same time, the sales cost is HK $575 million, year-on-year + 30.6%, RMB caliber + 21.8%, mainly for the company to continue to promote sales and promotion in large customer markets. The company's high R & D investment assurance rate platform and product IGIX competitiveness make the company make a further breakthrough in the state-owned enterprise market. Soochow Securities is optimistic about the market space of China's central enterprises in the ERP racetrack. At the same time, the company has strong competitive factors such as the background of state-owned enterprises and product strength. Soochow Securities believes that the company's market share is expected to further increase in the future.
Risk Tips:The epidemic affects the progress of the project, and the process of digital transformation of state-owned enterprises is not as expected.