Willfar Information Technology Co.Ltd(688100) (688100)
Event: the company issued the voluntary disclosure announcement on the awarded contract in November 2021. The total amount of the won state grid project was RMB 181625100, accounting for 12.54% of the company's audited total operating revenue in 2020.
Winning the State Grid project, the company has strong growth momentum in the future
The bid winning projects announced by the company are: 1) the second electricity meter of the 48th batch of procurement (Marketing) projects of State Grid Co., Ltd. in 2021 The bid winning amount of the project (including power consumption information acquisition) is 136.6011 million yuan; 2) the bid winning amount of the second distribution network material agreement inventory bidding procurement project of State Grid Hunan Electric Power Co., Ltd. in 2021 is 32.1978 million yuan; 3) the bid winning amount of the fifth material bidding procurement project of State Grid Shandong Electric Power Co., Ltd. in 2021 is 12.8262 million yuan. The total project amount is 18162 yuan . RMB 510000, accounting for 12.54% of the company's audited total operating revenue in 2020. The company has strong growth momentum in the future.
During the 14th Five Year Plan period, China Southern Power Grid will focus on the construction of distribution network, and the distribution side accounts for about half of the total investment
In November 2021, China Southern Power Grid issued the "14th five year plan" for power grid development of China Southern Power Grid, which proposed that during the "14th five year plan" period, China Southern Power Grid Corporation would plan to invest about 670 billion yuan in the overall power grid construction, so as to speed up the process of digital power grid construction and modern power grid, and promote the construction of new power system with new energy as the main body. China Southern Power Grid listed the construction of distribution network as the focus of the 14th five year plan, and the planned investment reached 320 billion yuan, accounting for almost half of the total investment. "Distribution network is a key link in energy production, conversion and consumption, as well as a supporting platform for renewable energy consumption, a multi massive information and data platform and a trading platform for multi market players. Under the background of the energy revolution driven by the goal of carbon peak, carbon neutralization and national strategic carbon reduction, distribution network is gradually becoming the core of the power system." Introduction to relevant personnel of the planning department of China Southern Power Grid Corporation. In terms of distribution network construction, we will continue to strengthen the construction of urban distribution network, so that the average annual outage time of customers in high reliability demonstration area and high-quality power supply leading area will not exceed 5 minutes, reaching the international leading level, and the self-healing of distribution will reach 100%, reaching the international top level of high power quality assurance and high-quality customer service experience.
During the 14th Five Year Plan period, the total investment in the national power grid was nearly 3 trillion yuan, promoting the transformation and upgrading of the power grid
On September 9, 2021, at the 2021 International Forum on energy and power transformation, Xin Baoan, chairman and party secretary of the State Grid Corporation of China, disclosed that, During the "14th five year plan" period, the State Grid plans to invest 350 billion US dollars (about 2.23 trillion yuan) to promote the transformation and upgrading of the power grid. This means that the cumulative planned investment in the power grid of the State Grid and China Southern Power Grid during the "14th five year plan" will exceed 2.9 trillion yuan. If you include some regional power grid companies other than the two power grid giants, the "14th five year plan" During this period, the total investment in the national power grid is expected to be nearly 3 trillion yuan. This is significantly higher than the total investment of 2.57 trillion yuan in the national power grid during the 13th Five Year Plan period and 2 trillion yuan during the 12th Five Year Plan period.
Under the background of "carbon neutralization" strategic system and power grid transformation and upgrading, the company is expected to fully benefit in the future
In 2020 Willfar Information Technology Co.Ltd(688100) and China Southern Power Grid Digital Research Institute jointly built an innovative consortium of "key technologies of digital power grid" and jointly participated in the national key R & D plan project of "key technologies of digital power grid". The specification formulation of edge computing chip and the software and hardware design of edge computing device have been completed in stages, so as to continue to contribute to the research on cutting-edge technologies of digital power grid and promote the development of digital power grid industry. According to the statistical results of the bid winning situation of State Grid and China Southern Power Grid over the years, the company's products are among the best in the industry. We are optimistic about the broad market space of power Internet of things for a long time, and the company is expected to fully benefit in the future.
Profit forecast and investment suggestions: during the 14th Five Year Plan period, the national power grid will further accelerate the pace of power grid digital transformation. The company's main business mainly focuses on intelligent products at the distribution and consumption side, which is expected to benefit fully. With the development strategy of "IOT world, core and future", the company was the first to layout the core technology of energy Internet, accumulated many years of application and development experience in the industry, and focused on the power Internet of things and smart city Internet of things. With a complete industrial chain layout, the company is a leading energy Internet comprehensive solution provider in China, with broad growth space in the future. Considering that the State Grid South Grid increased its investment in power grid during the 14th Five Year Plan period, the company is expected to fully benefit from the transformation and upgrading of power grid. The net profit of the company for 21-23 years was increased to 360 million, 510 million and 700 million yuan (the original value was 360 million, 470 million and 600 million yuan), corresponding to 31 times of PE in 22 years, and the "buy" rating was reiterated.
Risk warning: risk of new technology R & D and new product development; The concentration of downstream customers may cause business fluctuations; Market competition risk; The overseas business development caused by macro environment and epidemic situation does not meet expectations; The project delivery progress is less than expected, etc
