\u3000\u3000 Trs Information Technology Co.Ltd(300229) (300229)
On January 26, Trs Information Technology Co.Ltd(300229) was admitted as a formal member of the yuan universe Industry Committee of China Mobile Communications Federation. The company’s profound accumulation in semantic intelligence provides strong support for virtual human technology, and gradually build multi industry meta universe application scenarios such as media, finance and public services in the future. The company has significant advantages in texture. Maintain buy rating.
Key points supporting rating
Semantic intelligence technology supports the implementation of cloud universe application scenarios. On January 27, 2022, the virtual human “Xiaosi” developed by Trs Information Technology Co.Ltd(300229) was officially launched. The virtual human can continuously broadcast the hot spots of the Winter Olympics, realize the functions of automatic editing and intelligent writing, and was adopted by China sports daily as the broadcasting support. Using semantic intelligence to provide a core technology base for virtual people, Trs Information Technology Co.Ltd(300229) continues to promote the implementation of meta universe application scenarios such as government intelligent Q & A, and continues to enable the innovative development of digital economy.
The annual forecast was released, and the core main business grew rapidly. Excluding the occasional real estate revenue and Internet marketing revenue in 2020, the company’s core main business is expected to achieve revenue of 930 million-1.2 billion in 2021, with a year-on-year increase of 19.29% – 53.38%, and the net profit is expected to be 220 million-290 million, with a year-on-year increase of 21.17% – 55.79%. Under the development strategy of “semantic intelligence +”, the company strengthened investment in technology research and development, focused on artificial intelligence and big data products and services, and continued to maintain rapid growth in its core main business.
Favorable policies benefit network security business. The measures for network security review came into force on the 15th. The revised measures focus on maintaining data security, add a number of provisions on network platform operators and data security, expand the scope of coverage and pay more attention to data security. Driven by the policy, the relevant market demand is enhanced, and the company’s network security business is expected to achieve rapid development.
Valuation
Adjust the net profit forecast from 2021 to 2023 to 290 million, 390 million and 510 million, EPS to 0.40 yuan, 0.54 yuan and 0.72 yuan (revised down 3 ~ 12% due to the contraction of media business), and the corresponding PE to 27x, 20x and 15x. Considering the high growth of the company’s performance (excluding temporary income such as real estate) and the company’s position as a leader in semantic intelligence, the corresponding 2021 valuation is at the bottom of the company’s valuation range, maintaining the buy rating.
Main risks of rating
Technology research and development is not as expected; Disadvantageous business expansion; Policy support was less than expected.
