China Bester Group Telecom Co.Ltd(603220) (603220)
1、 Event overview
Recently, China Mobile procurement bidding network successively announced the bid winning candidates of "centralized procurement (transmission pipeline) project of communication engineering construction services from 2022 to 2023" in 31 provinces and cities. The company won 65 bid sections in 19 provinces, with a bid winning amount of 3.097 billion yuan, ranking in the forefront of the industry.
2、 Analysis and judgment
Recently, the share of bidding companies ranks in the forefront, and their comprehensive competitiveness is comparable to that of state-owned enterprises
The mobile centralized purchase is the annual pipeline bid, and the company's bid winning amount ranks in the forefront. The transmission pipeline construction project involves 31 provinces and municipalities directly under the central government, with a total budget of 58.860 billion yuan. It is divided into 943 packages, and a total of 107 enterprises won the bid. Among the top ten, China Mobile Construction ranked first, winning the bid of 11.869 billion, accounting for 20.16% of the total framework amount. Hongxin Technology Service under China Telecom ranked second, winning the bid of 3.915 billion, Zhongtong service company (Zhongtong Third Bureau, Zhongtong service construction, China Post Construction and Zhejiang post and telecommunications project) ranked 6 / 7 / 8 / 10 respectively, and three private enterprises Jiahuan, Zhongbei and runjian ranked 3-5 respectively, winning 3.626/3.097/2.793 billion respectively.
The company won the bid of 3.097 billion yuan, accounting for 5.26% of the total bid amount, ranking fourth; We calculated the average discount coefficient according to the bid price discount of each bid section. The discount coefficient of the company is 41.54%, which is not only higher than the average value of 40.21%, but also higher than Jiahuan (34.75%), runjian (39.58%) and other private enterprise competitors, reflecting the overall competitiveness of the company to a certain extent.
Recently, the company continued to win large orders, highlighting the leading strength of private network construction. 1) On November 13, China Mobile announced the bid winning results of "headquarters supervisor and self built transmission equipment installation engineering construction services from 2022 to 2023". There were four bid winning 5 bid sections, including China post construction, China general service, China Mobile Construction and China Bester Group Telecom Co.Ltd(603220) , of which the company won bid section 5 with a bid winning amount of 30 million yuan, which is the only one among private enterprises. 2) According to the company's announcement on October 11, the company participated in the bidding of "China Mobile Guangdong company's open bidding project for indoor distribution and building integrated access construction services from 2021 to 2023". The company estimates that the total winning amount is 762 million yuan, ranking first among the 20 shares of the project. As the head enterprise of private network construction, the company continues to win the mobile large order, which reflects the company's outstanding comprehensive strength and technical professional ability of 5g network construction, and will also play a positive role in the market expansion in the field of operators.
3、 Investment advice
Recently, the company continues to obtain large orders from operators, and the performance is expected to be fulfilled as scheduled; At the same time, the company has arranged smart city and 5g industry application services, extended mergers and acquisitions, arranged the field of optical modules, and actively explored the second growth curve. We are optimistic about the long-term development of the company. It is estimated that the net profit attributable to the parent company from 2021 to 2023 will be 203 / 276 / 332 million yuan, corresponding to the PE multiple of 27x / 20x / 17x, and the historical valuation center of the company is 49 times. For the first coverage, give a "recommended" rating.
4、 Risk tips:
Intensified market competition; The scale of accounts receivable is large.
