China Greatwall Technology Group Co.Ltd(000066) (000066)
The “six major banks” fully covered the field of finance, information and innovation, and handed over brilliant transcripts. In 2021, with the penetration of Xinchuang from Party and government Xinchuang to industry Xinchuang, there will be more rare market opportunities. With the continuous expansion of domestic pilot projects of financial institutions, from large state-owned banks, joint-stock banks to urban commercial banks, from mainframe, core business systems to peripheral systems, the practice of migrating to domestic independent R & D infrastructure system has been started in varying degrees and ranges. China Greatwall Technology Group Co.Ltd(000066) around the “Finance +” scenario, it has created an overall scheme for the migration of intelligent channel system. According to the news on the company’s official website, by the end of 2021, it has been successfully shortlisted to the CBRC; Nearly 10000 machines entered the CSRC; The “six major banks” Bank Of China Limited(601988) , China Industrial And Commercial Bank Of China Limited(601398) , China China Construction Bank Corporation(601939) , China postal savings bank, Agricultural Bank Of China Limited(601288) , Bank Of Communications Co.Ltd(601328) won the bid in an all-round way to achieve a “Grand Slam”! In addition, key policy banks and joint-stock banks such as the national open bank, the Export Import Bank of China, the Agricultural Development Bank of China, China Citic Bank Corporation Limited(601998) and Guangdong Development Bank have formed landmark cases to promote the implementation of financial online information, showing a situation of “blooming everywhere” in the field of financial Online information.
The share of traditional Xinchuang is high. Since the promotion of Party and government information innovation in 2020, the company’s information innovation business has achieved good development, launched a series of core products with independent intellectual property rights, such as new domestic high-performance chips, multi-channel servers and eight core high-end desktop terminals, and formed an independent security product line with the most complete pedigree and the strongest strength in China. It has also built a supporting guarantee system project for network information industry in 31 provinces (autonomous regions and municipalities directly under the central government), and the market share of domestic complete machines has reached 42.5%.
High tech electronics benefits from national defense informatization. The company’s high-tech electronic business is mainly composed of three subsidiaries: Zhongyuan electronics + Shengfan + Xiangji Haidun. As an important supplier and service provider in China’s national defense communication field, it can realize the full coverage of sea, land and air force communication. With the continuous increase of the proportion of information-based weapons and equipment in the future military expenditure structure, military informatization will still be the key field of China’s national defense and military industry investment. It is expected that the company’s high-tech electronic business is expected to continue to benefit.
Feiteng chip is advancing rapidly. According to the news on Feiteng’s official website, Feiteng operated steadily in 2021, achieving sales of more than 2 million films, with a year-on-year increase of more than 2 million films, exceeding the expected target. In terms of industry penetration, the products have been widely used in government office, finance, energy, rail transit, communication, industrial Internet and other fields, serving 4 million government users. In terms of ecology, there are 240 + integrators, 540 + hardware partners and 2600 + software partners. There are nearly 3500 ecological partners, and the adaptation optimization has been completed with 6672 software from 2683 manufacturers.
Investment suggestion: as the leader of domestic complete machines and chips, Xinchuang has entered the mass production stage, and the company is expected to continue to benefit from military informatization. We estimate that the operating revenue of the company from 2021 to 2023 will be RMB 18.491 billion, RMB 22.559 billion and RMB 27.748 billion respectively, the net profit attributable to the parent company will be RMB 1.159 billion, RMB 1.398 billion and RMB 1.751 billion respectively, and the EPS will be RMB 0.39, 0.48 and 0.60 respectively. Maintain the “buy” rating.
Risk tip: the promotion of the whole machine industry is less than expected, and Feiteng’s shipment is less than expected.
