Willfar Information Technology Co.Ltd(688100) (688100)
Key investment points
The Internet of things communication module won the bid, highlighting the core strength of technology research and development: in the second centralized bidding procurement of the marketing project of the State Grid headquarters in 2021, Willfar Information Technology Co.Ltd(688100) won six bid packages, with a total bid winning amount of about 137 million yuan, ranking first overall. In the bidding procurement of provincial companies, The bid winning amount of Internet of things communication module (HPLC) is nearly 70 million yuan, demonstrating the hard core strength of chip technology research and development. The company uses Internet of things hybrid routing technology and wireless communication technology (RF) technology, power line carrier communication technology and cellular communication technology as the core. For the networking communication in the last kilometer of the Internet of things, HPLC / HPLC + RF dual-mode is introduced. As one of the core technologies of the company, HPLC communication chip takes the lead in core indicators such as anti noise and anti attenuation, and stands out in stimulating market competition. The company's Deepening Application of HPLC meter reading Software v1.0 And its NB IOT Internet of things water meter Software v1 0 won the title of "famous product of Hunan software and information technology service industry in 2021". At the network layer, the energy controller, the core product of the customer side digital power grid, has reached the international advanced level through identification. At the same time, based on various modules of the fifth generation HPLC chip, it fully supports the deepening of application functions, adopts high-level hardware encryption algorithm and unique perceptual adaptive technology, and takes the lead in core communication indicators such as anti noise and anti attenuation. It is the source, network, load Provide basic support for storage interaction.
Comply with the national "double carbon policy" energy transformation and promote the digital upgrading of China's power grid: with the promotion of national energy transformation and power system reform, the Internet of things will be more widely used in power grid construction. Willfar Information Technology Co.Ltd(688100) as a leading enterprise in the power Internet of things industry, it has established long-term cooperative relations with high-quality customers such as State Grid and China Southern Power Grid to jointly promote the continuous upgrading of China's digital power grid. On December 1, 2021 Willfar Information Technology Co.Ltd(688100) issued an announcement, disclosing that in November 2021, it won the bid for the 48th batch of procurement of State Grid Corporation of China in 2021 (the second bidding procurement of electric energy meters (including power consumption information acquisition) of marketing project), the second bidding procurement project of distribution material agreement inventory of State Grid Hunan Electric Power Co., Ltd. in 2021 and the fifth bidding procurement project of State Grid Shandong electric power company in 2021, The bid winning amounts were 136.6011 million yuan, 32.1978 million yuan and 12.8262 million yuan respectively.
Profit forecast and investment rating: Based on the continuous improvement of the company's Internet of things communication module technology, we maintain the operating revenue forecast of RMB 1872 / 2417 / 3126 million from 2021 to 2023, and realize the net profit attributable to the parent company of RMB 360 / 474 / 629 million from 2021 to 2023, with corresponding EPS of RMB 0.72/0.95/1.26 respectively. The current market value corresponds to PE of 49 / 37 / 28 times from 2021 to 2023, Maintain the "buy" rating.
Risk warning: the performance of the contract is less than expected; Risk that the development of power Internet of things products is less than expected; Revenue recognition is less than expected; Industry competition intensifies.
