Willfar Information Technology Co.Ltd(688100) (688100)
Core view
Basic information and main business of the company. Willfar Information Technology Co.Ltd(688100) was founded in 2004 and is one of the earliest enterprises specializing in energy Internet in China. The company’s main business includes network layer, perception layer and application layer business. (1) The main products of the company’s network layer include communication gateway and communication module. (2) the products of the company’s perception layer include electric monitoring terminal and water, gas and heat sensing terminal. (3) the products of the company’s application layer mainly realize the energy consumption monitoring function of collecting customer energy consumption data and analyzing and managing, the status monitoring function of distribution network, and the status monitoring function of fire-fighting facilities and fire hazards.
Development background of the company: the increase in the proportion of new energy has accelerated the intelligent process of traditional power grid. China’s one belt, one road, is one belt, one road is the 1. China: the new energy promotes the intelligent demand of power grid. In 2021, carbon dioxide reached the peak of the industry, and the proportion of new energy increased gradually. The investment of the State Grid and South Network in the distribution network increased, and digitalization and intellectualization were the key points. (2) overseas: “one belt and one road” opened up the market. Give birth to the overseas market demand of smart grid. China has strengthened international standardization cooperation with Russia, Belarus, Kazakhstan and other countries in the fields of electric power, power grid and new energy.
The company’s main competitive advantages. (1) A strong R & D team builds technical advantages. Technical advantages are more important in the company’s track, and technical ability is one of the important factors to be considered in power grid bidding. The company’s technical advantages are reflected in the formulation of technical standards, the first mover advantage of industry transformation projects and customer stickiness derived from technical services; (2) The company is an Internet of things enterprise with a few technologies and products covering all levels of the energy Internet structure, from the underlying chip design, data perception and data acquisition, to the communication technology to ensure high-speed data transmission and stable connection, and then to provide users with digital solutions such as software management.
Financial forecast and investment suggestions
Based on the trend of increasing digital and intelligent investment in the company’s downstream distribution network and the judgment of the company’s own high-end products, we predict that the company’s earnings per share from 2021 to 2023 will be 0.80 yuan, 1.11 yuan and 1.41 yuan respectively. Referring to comparable companies, we believe that the current reasonable valuation level of the company is 36 times the P / E ratio in 2022, and the corresponding target price is 39.91 yuan. We give a buy rating for the first time.
Risk statement
Macroeconomic risks; Supply chain risk; Customer concentration risk; Payment collection risk; Rising risk of raw materials; Overseas epidemic risk.
