Longshine Technology Group Co.Ltd(300682) (300682)
“Double carbon” has given birth to energy reform, and energy digitization has launched massive space. The dual carbon goal will accelerate the energy transformation. 1) From the perspective of supply, new energy power generation requires the power grid to enhance its consumption capacity. At the same time, the decline of subsidies and affordable access to the Internet drive power generation enterprises to increase their demands for cost reduction and efficiency, giving birth to the demand for energy digitization. It is estimated that the power information market will reach more than 70 billion in 2024; 2) In terms of consumption, electricity substitution in the transportation field is typical of new energy vehicles, which drives the development of the charging operation market. The space is broad but the long tail is obvious. Aggregation charging may be the final mode to solve the contradiction between supply and demand. In addition, time of use pricing and other promotion of integrated energy services will accelerate the implementation of pricing and understanding, which is expected to form a trillion market with a wide space.
The business model continues to upgrade, from software services to platform operation, Longshine Technology Group Co.Ltd(300682) deeply benefits from the trend of energy digitization industry. 1) The company started with electricity service marketing informatization and completed the acquisition of successfully transformed energy Internet enterprises in 2019. The strategy focuses on energy digitization. On the one hand, it deeply cultivates the energy industry and helps the digital upgrading of power grids and power generation companies and the construction of new power systems; On the other hand, through the self built energy Internet service platform, the B2B2C mode is adopted to give full play to the resource advantages of the b-end and provide scenario realization for the C-end. It has been laid out in the fields of energy payment, automobile charging, energy efficiency management and other fields to promote the electrification of energy consumption. 2) Longshine Technology Group Co.Ltd(300682) has gradually completed the transformation from traditional 2B business model to B2B2C business model. The core of model upgrading is to change counterparty transactions into partner cooperation, and the revenue model extends from software projects to continuous operation services. For most software companies, delivery represents the end of the service. For Lanxin, software delivery means the beginning of continuous revenue generating operation services.
The first mover advantage of power service is significant, and the main business will benefit from State Grid marketing 2.0. 1) The company is the core profit link of power grid and has been deeply engaged in the field of power service marketing informatization for more than 20 years, with a market share of more than 40%. The switching cost of this business is high and the pattern is stable. At the same time, the industry relies on know-how and technology accumulation, and the barriers are very high. Relying on long-term accumulation, the company has formed a full product line in the field of power marketing, rapidly cultivated medium and Taiwan capacity and strong market response. 2) The promotion of power reform has given birth to a large number of information needs for power service. The company will benefit deeply by relying on its track card position and market share; At the same time, State Grid marketing 2.0 is expected to deepen the pilot and gradually implement. As an important supplier of State Grid, the main business depth benefits from the promotion of State Grid marketing 2.0 system.
The energy digital platform has both B / C-end capability, and “traffic + better understanding of electricity” constructs a competitive barrier, and the application scenario is expected to continue to expand. The company has built its own energy Internet platform, adopting B2B2C mode and multi track. 1) C end life payment is closely related to Alipay, and the traffic entrance is more stable. In the future, we will rely on the payment scenario and expand value-added services to enhance profitability. 2) the new B terminal connects with the national head charging operator. As of the end of the three quarter, the total number of charging operators has reached 360, and the charging volume is over 270 million degrees. The upstream charging pile market is relatively dispersed. The downstream C terminals are connected with Alipay and Gao De super flow entrance. The innovation scene will also expand the future space; 3) In the field of enterprise energy services, Langxin’s photovoltaic cloud platform has been connected to more than 10000 photovoltaic power stations. The company’s building smart energy-saving service platform has also achieved breakthroughs for hospitals, enterprises, parks and other customers. In the future, we will expand new space around different power stations and different business entities, and rely on share cards to benefit from the downstream boom; 4) Relying on complete product lines, the company participates in comprehensive energy services, actively promotes product platform and cloud, and builds its own comprehensive energy service cloud to provide PAAS services, which is expected to gradually expand to smart parking, park management, etc., and open up long-term space.
Relying on the cooperative ecology, Internet TV builds strong barriers and opens up space for entering IPTV. 1) In the Internet TV industry, licenses are scarce and operators are concentrated. The company entered earlier and established a close cooperation ecology with licensors and operators to form cards and barriers; 2) The company has gradually expanded to IPTV and opened up a number of value-added services relying on platform operation, with optimistic growth space in the future.
For the first time, give a “buy” rating. We predict that the company’s operating revenue from 2021 to 2023 will be 4.441/56.57/6.872 billion yuan, with a corresponding growth rate of 31.1% / 27.4% / 21.5%, and the net profit attributable to the parent company will be 9.68/12.51/1.503 billion yuan. Considering the company’s business model and revenue growth, and referring to the valuation of comparable companies, the target market value in 2022 will be 50.40 billion yuan, corresponding to 40 times the PE level, and given a “buy” rating.
Risk tip: the power informatization bidding is less than expected, the industry competition is intensified, and the return of new business is less than expected.
