Taiji Computer Corporation Limited(002368) (002368)
event:
On December 14, the company announced that it planned to use part of the funds raised by convertible bonds to acquire the equity of minority shareholders of Jincang of the National People’s Congress and increase their capital, and to acquire part of the equity of Puhua software held by the controlling shareholder Taiji of cetca.
comment:
Holding NPC Jincang and holding Puhua software: before this transaction, the company held 33.28% of the equity of NPC Jincang. After acquiring part of the equity of NPC Jincang held by CETC Taiji and CETC research investment and increasing capital, the company held 51% of the equity of NPC Jincang to achieve absolute control, with a transaction amount of about 294 million yuan. The company acquired part of the equity of Puhua software held by cetca Taiji, with a transaction amount of 74.66 million yuan. After the transaction, the company held 20% equity of Puhua software and became the second largest shareholder of Puhua software.
NPC Jincang is a leading domestic Database Enterprise: NPC Jincang focuses on the database field and is a domestic data management software and service provider with independent intellectual property rights. The National People’s Congress gold warehouse has built a product, service and solution system covering the whole life cycle of data management and the whole technology stack. The products have been applied to more than 20 industries such as e-government, national defense and military industry, electric power, telecommunications and finance, and nearly 1 million sets have been installed and deployed. As a member enterprise of electronic technology group, the core product Jincang database management system has reached the international advanced level. In 2020, the gold warehouse of the National People’s Congress will achieve a revenue of 241 million yuan and a net profit of 6.26 million yuan; In the first three quarters of 2021, the company achieved a revenue of 182 million yuan and a net profit of 13.28 million yuan. With the explosive growth of China’s information technology application innovation Shenzhen New Industries Biomedical Engineering Co.Ltd(300832) in 2020, the gold warehouse of the National People’s Congress accounts for more than 50% of the market in the field of Party and government information innovation, and the future development prospect is expected.
PwC software is an important platform for basic software of China Electronics Technology Group: PwC software is mainly engaged in operating system business, with a full range of products and solutions for desktop operating system, server operating system, real-time embedded operating system and automotive electronic AUTOSAR operating system; Since its establishment, it has completed more than 70 topics such as “nuclear high base” and “industrial strong base”. In 2020, PwC software achieved a revenue of 93.88 million yuan and a net profit of 1.53 million yuan; In the first three quarters of 2021, the company achieved a revenue of 56.73 million yuan and a net loss of 5.8 million yuan. Puhua desktop and server operating systems have been applied in more than 60 ministries and commissions and nearly 700 enterprises and institutions, and have been popularized and applied in the party and government, national defense, transportation, electric power, finance, energy, telecommunications, health care and other industries, PwC automotive electronics AUTOSAR operating system products have obtained the highest level of international automotive functional safety (asild) certification. The company is optimistic about the development potential of domestic software and said that it will consider whether to implement the shareholding increase plan in the future according to the business status of PWC software.
Improve the layout of domestic basic software industry: through this transaction, the company will build a basic software industry system covering operating system, database and middleware, seize independent and controllable industrial opportunities, expand market share and enhance competitiveness. The company is gradually transformed from a system integrator into a basic software and solution provider, and is expected to continue to benefit from China’s digital transformation and the rapid development of information innovation.
Profit forecast: we expect the net profit of the company in 2021 / 22 / 23 to be RMB 426 / 512 / 600 million respectively, yoy + 15.60% / + 20.22% / + 17.06%, equivalent to EPS of RMB 0.74/0.88/1.03. At present, the corresponding PE of A-share price is 37 / 31 / 26 times, giving a “buy” rating.
Risk tips: 1. The development of Xinchuang business is not as expected; 2. The risk of intensified market competition; 3. The promotion of business transformation was less than expected.
