\u3000\u3000 Dawning Information Industry Co.Ltd(603019) (603019)
Event: the company released the performance express for 2021. In 2021, the operating revenue was 11.183 billion yuan, a year-on-year increase of 10.06%, the net profit attributable to the parent was 1.135 billion yuan, a year-on-year increase of 37.98%, and the non net profit deducted was 753 million yuan, a year-on-year increase of 43.23%. The high increase in the company’s net profit was mainly due to the increase in the company’s gross profit and the increase in the net profit of associated enterprises, which were recognized as investment income. In the single quarter of Q4, the revenue was 4.691 billion yuan, a year-on-year increase of 11.32%, the net profit attributable to the parent company was 668 million yuan, a year-on-year increase of 34.14%, and the non net profit deducted was 517 million yuan, a year-on-year increase of 37.50%.
“Counting from the east to the west” supports the development of digital economy, and server manufacturers are expected to benefit. Recently, the national development and Reform Commission, the central network information office, the Ministry of industry and information technology and the National Energy Administration jointly issued a notice agreeing to start the construction of National Computing hub nodes in 8 places, including Beijing, Tianjin and Hebei, the Yangtze River Delta, Guangdong, Hong Kong, Macao, Dawan District, Chengdu and Chongqing, Inner Mongolia, Guizhou, Gansu and Ningxia, and planned 10 national data center clusters, It marks the official and comprehensive start of the project of “counting from the east to the west”. The official and comprehensive launch of the “east to West computing” project will accelerate the construction of computing power, meet the increasing demand for computing power year by year, effectively support the development of digital economy, promote the digital transformation of China’s industry, and promote the emergence of new business forms and new models. With the planning and construction of the data center cluster, the demand for servers has been strongly supported. The average shelf rate of the data center in the planned cluster should reach at least 65%, and the server manufacturers are expected to benefit.
China Mobile’s domestic chip PC server is centralized, and haiguang chip accounts for 10.49%. It is understood that China Mobile will purchase about 163692 PC servers in the first batch of centralized purchase of PC servers from 2021 to 2022. The project is divided into 16 bid packages. On November 16, 2021, China Mobile announced the bid winning results of package 3, package 7, package 11 and package 12. Four companies including Inspur Electronic Information Industry Co.Ltd(000977) , Ziguang Huashan technology, Zhongke controllable and Zte Corporation(000063) won the bid, with a total of 17164 units, all of which are haiguang chip servers, accounting for 10.49% of the overall bidding volume.
Cloud computing is an important engine of digital transformation, and high-end computing is the base of cloud computing. On January 12, the State Council issued the 14th five year plan for the development of digital economy, which defined the guiding ideology, basic principles, development objectives, key tasks and safeguard measures for promoting the healthy development of digital economy during the 14th Five Year Plan period. On January 16, the second issue of Qiushi magazine in 2022 published the important article of Xi Jinping general secretary “constantly strengthening, optimizing and expanding China’s digital economy”, emphasizing the development of digital economy. In addition, digital economy has become a high-frequency word in this year’s provincial government reports. More than 25 provinces and cities have clearly proposed to promote the development of digital economy in the “14th five year plan” stage, and some provinces have even defined specific quantitative indicators. Digital economy will become the focus of policy in the 14th Five Year Plan period. Enterprises on the cloud has become a common action to promote the deep integration and innovation of the real economy and the Internet and build a modern industrial system. Taking cloud computing technology as the carrier, it enables the transformation of enterprises and business sectors in various industries. Therefore, it is expected to drive the large-scale development of the upstream high-end computing industry.
Investment suggestion: it is estimated that the company’s revenue from 2021 to 2023 will be 11.183 billion yuan, 12.078 billion yuan and 13.044 billion yuan respectively, with a year-on-year growth rate of 10.1%, 8 / 0% and 8.0% respectively; The net profit attributable to the parent company was 1.135 billion yuan, 1.487 billion yuan and 1.936 billion yuan respectively, with a year-on-year growth rate of 37.97%, 31.04% and 30.23% respectively. From 2021 to 2023, the EPS was 0.78, 1.02 and 1.33 respectively, and the corresponding PE was 43, 33 and 25 respectively, maintaining the “buy” rating.
Risk warning: market competition intensifies; The R & D of new products is less than expected; The strategic advance is less than expected; Economic downside risk.
