Yuan Yue, the actual controller of Zero Points, will develop into a trustworthy and excellent growth investment target

Author: Yuan Yiman

The tide of the digital economy is rolling in, and on November 3, 2021, there are several points (301169. SZ) officially landed on the ChiNext board of the Shenzhen Stock Exchange, becoming one of the leaders in the field of capital market research and data analysis. According to public information, the company's business started from research and consulting services, formed an influential industry brand - "zero point survey", is one of the early pioneers in the industry, and now after more than 20 years of deep cultivation in the field, has become one of The leading data analysis and decision support service agencies in China, and is also a third-party evaluation agency for the relevant work of many ministries and commissions of the State Council, and is also one of the drafting units of the national standard "Market, Public Opinion and Social Survey Service Requirements" (GBT 26316-2010).

Moreover, according to public information, among the comparable companies with revenues of more than 50 million yuan and the main business of research and consulting, there are mainly four Huichen Information, Zhuosi Data, Xinsou Consulting, and Lixin Data, compared with comparable companies in the same industry, Zero Points obviously has a unique differentiated competitive advantage by virtue of its continuous deep cultivation in the field of public affairs.

It is reported that in this IPO, the number of shares issued by Zero Points was 18,059,944 shares, the number of effective subscription households issued on the Internet was as high as 1.4186 million, the winning rate was 0.0115451151%, and finally the effective subscription multiple of its online investors reached 8661.67 times, showing the positive subscription attitude of investors. Moreover, it is worth mentioning that the 2020 P/E ratio corresponding to the issue price of Zero Point Is only 29.27 times, which is far lower than the arithmetic average of the 2020 P/E ratio of the four comparable companies above, and its stock price performance after listing is worth looking forward to.

Public affairs and commercial business are "going hand in hand"

Competitive advantage is outstanding

Zero Point Count started early in the field of public affairs and undertook many important research topics through its strong competitive advantage in this field, such as the "Survey on the Competitiveness of Chinese Enterprises" commissioned by the World Economic Forum in 2021, the "Economic Situation Survey" project commissioned by the Development Research Center of the State Council in 2020, the "Survey on the Impact of the Covid-19 Epidemic on Employees" commissioned by the Chinese Academy of Labor and Social Security Sciences in 2020, and the "Belt and Road" commissioned by the All-China Federation of Industry and Commerce in 2019. The Survey and Research Project on the Current Situation of Chinese Private Enterprises along the Route, etc., and successfully completed the "Research on the Basic Situation of People from New Social Classes in the Country" by the United Front Work Department of the CPC Central Committee, the "National Survey on the Legal Aid Needs of persons with Disabilities" by the Ministry of Justice of the People's Republic of China, the "Survey on the Civilized Image of Chinese Outbound Tourists" by the Ministry of Culture and Tourism of the People's Republic of China, the "Survey on the Satisfaction of Taxpayers with Tax Reduction and Fee Reduction" by the State Administration of Taxation, the "Survey on the Satisfaction of Chinese People's Livelihood" by the Development Research Center of the State Council, and the "Survey on the Satisfaction of Chinese People's Livelihood" by the Development Research Center of the State Council, and the "Survey on the Satisfaction of Chinese People's Livelihood" by the State Administration of Foreign Languages. Since the Eighteenth National Congress of the Communist Party of China, the evaluation of the effect of the foreign translation and dissemination of core political discourse, the All-China Federation of Industry and Commerce", the "Research on the Current Situation of Chinese Private Enterprises along the "Belt and Road", and many other projects have provided decision-making references for relevant departments, while social influence has continued to increase, and the competitive advantage of market segments has become increasingly prominent.

While continuing to consolidate the advantages of public affairs business, Zero Points also took advantage of the early layout of commercial business, the current company's business not only covers government services in the field of public affairs, urban management, market supervision, business environment, rule of law and public security, culture and tourism, social group research and "Belt and Road" and other aspects, but also covers strategic management and decision-making, customer positioning and tracing, product positioning and development, service experience management and optimization, sales management and optimization, goods and supply chain management, Store management and optimization, channel layout and management optimization and other aspects, ushered in a comprehensive project performance "eye-catching" good situation, according to its prospectus disclosed, the company's main business income in recent years has shown an overall growth trend, public affairs business and commercial business as a whole has achieved balanced development, of which the public affairs business in the past three years in the same period of revenue of nearly 200 million yuan, revenue accounted for about 50%, customers not only from the central ministries and commissions to the grass-roots townships at all levels of party and government organs to achieve comprehensive coverage, but also successfully penetrated into the commercial field of consumer goods More than ten industries such as finance, automobile, real estate, TMT, logistics, etc., have consolidated their position in the industry while continuously enhancing their core competitiveness.

Talent advantage is obvious R & D investment ranks first in comparable companies

Data intelligence applications will become an important profit growth point

After 20 years of deep cultivation in the industry, today's zero point number is not only expanding in scale, but also the talent team is becoming more and more mature, and now it has successfully possessed an elite research and consulting team with neat discipline configuration. According to public information, as of the end of 2020, its research and consulting personnel have reached 342 people, accounting for nearly 40% of the total number of the company, and more than 97% have a bachelor's degree or above, and the company has 210 R&D and technical personnel in the same period, accounting for 23.57% of the company's total number. Since 2006, the company has held an internal innovation competition every year, and has formulated long-term incentive measures to bind industry talents to the long-term interests of the company through employee shareholding, which not only maintains the stability of the core business team, but also enhances the attractiveness of high-end talents.

Talent advantage continues to exert force at the same time, in order to ensure the sustainable growth of the business, zero point number in the research and development of innovation has also made breakthroughs, the current data collection and analysis methods have formed two core technologies of online data integration technology and vertical application algorithm technology, and achieved 118 software copyrights and other technical achievements, but also integrated these two core technologies to develop a set of data integration, transmission, storage, analysis and visualization as one of the data technology platform - digital cube platform, The advanced nature of the technical level is very obvious. In order to continue to maintain a competitive advantage, the amount of R&D expenses and R&D expenses of zero points show a continuous growth trend, public information shows that from 2018 to the first half of 2021, its R&D expenses accounted for 7.26%, 8.72%, 13.74% and 23.06% respectively, while the average proportion of R&D expenses of comparable companies in the same period was only 4.24%, 4.93%, 5.98% and 7.32%, and the high R&D investment also ensured the autonomy of the company's core technology and core products. The data shows that from 2018 to the first half of 2021, the proportion of revenue generated by the company's use of core technologies has reached 85.87%, 93.41%, 94.53% and 97.14% respectively, which has continued to increase and gradually approached 100%.

In recent years, with the modernization of national governance capabilities and the continuous deepening of supply-side reform, party and government organs at all levels, public institutions and large well-known enterprises at home and abroad have continuously carried out digital transformation, and business scenarios have been continuously enriched, which has rapidly expanded the market space for data intelligent application software products. In order to seize the opportunity, Zero Point Has brought together a multi-field professional team to cooperate in research and development, and successfully developed advanced data intelligent application software, which not only realizes the softwareization of data analysis, but also improves the reuse rate and reduces the cost, and can help customers achieve rapid response, scientific decision-making and efficient action, thus forming a new characteristic business. According to the prospectus, the revenue of zero-point data intelligent application software has increased from 3.2807 million yuan in 2018 to 19.2735 million yuan in the first half of 2021, and the proportion of the main business has also increased significantly from 0.94% in 2018 to 14.92% in the first half of 2021, which has formed a significant driving force for the company's performance. According to this trend, the proportion of its data intelligence application software products will undoubtedly become larger and larger in the future, and its importance will become more and more prominent. In this regard, Zero Points said that it will continue to increase R&D investment and technological innovation, and gradually realize the transformation and upgrading from "data analysis" to "data intelligent application" while optimizing and upgrading the existing decision analysis report products and the functions of the digital cube platform. In the future, the company will also vigorously develop the data intelligence application business, through the implementation of the investment project of the raised funds, the data intelligence application products will become an important profit growth point of the company.

Stable and high-quality customer resources The revenue of new customers accounts for about 30%.

The industry scale growth space is huge Fundraising to enhance the company's core competitiveness

With the continuous innovation and improvement of products and services, as well as years of hard work and precipitation in the research and consulting industry, Zero Point Has successfully accumulated a large number of high-quality customers in the field of public affairs and business. Among them, in the field of public affairs, there are many well-known customers with a cooperation period of more than five years, and the State Postal Administration, the State Tobacco Monopoly Administration, the Shanghai Municipal Public Security Bureau, the State Intellectual Property Office, the Shanghai Municipal Taxation Bureau, the Ministry of Housing and Urban-Rural Development and other ministries and commissions have a history of cooperation with the company for more than 10 years. In the business field, the company's customers with a cooperation period of more than five years are also numerous, Alibaba, Tencent, China Post and many other well-known large enterprises have maintained cooperation with the company for more than 10 years, AND BAIC Group, Vanke Group, China Resources Group, FAW Group, China National Tobacco Corporation, China Construction Bank, Beijing Mobile and a large number of high-quality customers have cooperated with the company for nearly 20 years. Moreover, according to the prospectus, some of the main customers who have cooperated for more than 5 years have cooperated with the company in the past three years, while the old customers have been maintained and developed, the company's new customer development work has also achieved gratifying results, in recent years, the proportion of revenue of new customers has remained at about 30%, and the new and old customers have worked together to promote the sustained and steady growth of zero point performance.

According to the European Association for Public Opinion and Market Research (ESOMAR), the global market research industry market size in 2017 was 45.829 billion US dollars, of which the United States ranked first in the world, with 20.230 billion US dollars, accounting for 44% of the world, and China only ranked 5th, with 1.965 billion US dollars, accounting for less than 5% of the world, which means that the Chinese market research industry has a lot of room for growth. In recent years, the state has also successively introduced a series of policies and regulations to support the development of the research and consulting industry, which provides unlimited possibilities for the future development of the industry's leading enterprises represented by zero points. Moreover, the next step forward is the core business of the digital economy in the new stage, as the digital economy moves from the construction of digital systems to the new stage of digital resource application and digital ecological construction, Zero points will be expected to stand at the forefront of the intelligent data analysis and algorithm industry and lead the industry.

Regarding the development direction after the listing, Mr. Yuan Yue, chairman of the board, said in his speech at the roadshow: "The good development foundation laid by the company before the listing will shine to a new height after the listing. Going public means a higher level of responsibility for all of us, because we not only need to provide more valuable solutions to our client groups, but also need to make the company a trusted growth target for our investors."

In this IPO, the main "zero point has a cloud evaluation" project, a "knowledge wisdom spectrum" project, and a number of decision-making cloud brain projects, with the implementation of the project, the core competitiveness of zero point number will undoubtedly go to a new level, and ride the east wind of the times into a new development cycle.

Disclaimer: This article is for informational purposes only and does not constitute investment advice.

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