Taiji Computer Corporation Limited(002368) (002368)
1、 Event overview
On December 14, 2021, the company announced that it planned to change part of the raised funds of the convertible corporate bond investment project “Taiji industrial Internet service platform construction project” to acquire and increase the minority shareholders’ equity of Beijing National People’s Congress Jincang Information Technology Co., Ltd., and acquire part of the equity of Puhua basic software Co., Ltd.
2、 Analysis and judgment
After the completion of the transaction, the company will absolutely control NPC Jincang and become the second largest shareholder of PWC software. The equity proportion of NPC Jincang exceeds 50% and become the second largest shareholder of PWC software. 1) The company signed the share transfer agreement with cetca Taiji and cetca research and investment, and signed the capital increase agreement with the Jincang of the National People’s Congress. It plans to purchase the shares of the Jincang of the National People’s Congress from the above three companies or subscribe for the new shares of the Jincang of the national people’s Congress. Before the implementation of the above transaction, the company held 33.28% equity of NPC Jincang and was the controlling shareholder of NPC Jincang. After the completion of the above transaction, the company will hold 51% equity of NPC Jincang and further enhance its control. 2) At the same time, the company has signed a share transfer agreement with CETC Taiji to acquire 64.3604 million shares of Puhua software held by it. After the completion of this transaction, the company will hold 20% equity of Puhua software.
The acquisition of important assets of China Xinchuang is expected to further consolidate the company’s advantages
NPC Jincang is a leading domestic database enterprise, which 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 key industries, and nearly 1 million sets have been installed and deployed. Puhua software has desktop operating system, server operating system, real-time embedded operating system and automotive electronic AUTOSAR operating system. Puhua desktop and server operating system are widely used in more than 60 ministries and commissions and nearly 700 enterprises and institutions; Puhua automotive electronics AUTOSAR operating system products have been mass produced more than 5 million sets, and the technology is in a leading position in China.
3、 Investment advice
Through this acquisition, the company will further strengthen its advantages in the field of information innovation and build a basic software industry system covering operating system, database and middleware. As the “national team” and “leader” of government cloud and information innovation, the company will usher in new development opportunities. It is estimated that the company’s EPS from 2021 to 2023 will be 0.77, 1.00 and 1.21 yuan respectively, and the corresponding PE will be 35x, 27x and 23x respectively. The average PE of wind’s domestic replacement sector in 2021 was 61x (which was unanimously expected by wind). The company has certain valuation advantages, covered it for the first time, and was given a “recommended” rating.
4、 Risk tips:
Industry competition intensifies, the progress of technical route reform is less than expected, and the implementation progress of specific industries is less than expected.
