\u3000\u3000 Dawning Information Industry Co.Ltd(603019) (603019)
We are highly optimistic about the company's core technical strength and China's important position, and maintain the "buy" rating
Considering the improvement of the company's business trends and the gradual improvement of domestic high-end computing ecology, we raised the company's net profit attributable to the parent company from 2021 to 2023 to RMB 1.135, 1.545 and 2.094 billion (originally predicted to be RMB 1.035, 1.286 and 1.525 billion), and EPS to RMB 0.78, 1.06 and 1.43 per share. The current stock price corresponds to 43.0, 31.6 and 23.3 times of PE from 2021 to 2023, maintaining the "buy" rating.
The performance has increased rapidly, and the ecological layout of domestic high-end computing has achieved remarkable results
The company released the performance express for 2021, which is expected to achieve an operating revenue of 11.183 billion yuan, a year-on-year increase of 10.06%; The net profit attributable to the parent company is expected to be 1.135 billion yuan, a year-on-year increase of 37.98%; It is expected to realize a net profit of 753 million yuan, a year-on-year increase of 43.23%. The company's performance meets our expectations and exceeds market expectations. The high-speed growth of performance is mainly due to the layout of the company around the domestic high-end computer ecology, and remarkable results have been achieved.
The listing of haiguang information is imminent, and the company is expected to benefit from value revaluation
The main products of haiguang information are haiguang general processor (CPU) and haiguang coprocessor (DCU). At present, haiguang CPU series products haiguang No. 1 and No. 2 have been commercialized and widely used in telecommunications, finance, Internet, education, transportation and other fields. Meanwhile, haiguang 3 is in the verification stage and haiguang 4 is in the research and development stage. Haiguang DCU series products Shensuan No. 1 have realized small batch production, and Shensuan No. 2 is in the research and development stage. From 2018 to 2020, haiguang information achieved revenue of 48 million yuan, 379 million yuan and 1.022 billion yuan, with a year-on-year increase of 255%, 686% and 170%. On November 8, 2021, haiguang information's application for listing on the science and innovation board has been accepted. At present, the company holds 32.1% equity of haiguang information, and the company is expected to benefit from its value revaluation.
Haiguang server has outstanding advantages in the field of information and innovation in finance, telecommunications and other industries, and is expected to continue to grow at a high speed
In the field of industry information and innovation, higuang server with x86 architecture occupies a dominant position in the market by virtue of ecology and high performance. According to our statistics on public bidding information, the company has recently won large orders such as Bank Of China Limited(601988) , Shanghai Shanghai Pudong Development Bank Co.Ltd(600000) , Industrial Bank Co.Ltd(601166) , Zhangjiagang Agricultural Development Bank and so on. Previously, it also obtained a good market share in the localization bidding of Telecom, China Unicom and China Mobile, fully demonstrating the company's competitiveness in the field of industry information and innovation. We believe that haiguang information will highly benefit from the development of the industry's information innovation market and achieve sustained and rapid growth.
Risk warning: macroeconomic downside risk; Intensified market competition; Chip business did not meet expectations.
