\u3000\u3 China Vanke Co.Ltd(000002) 396 Fujian Star-Net Communication Co.Ltd(002396) )
Event overview: on March 24, 2022, the company released its annual report for 2021, realizing an operating revenue of 13.549 billion yuan, a year-on-year increase of 31.49%, a net profit attributable to the parent company of 550 million yuan, a year-on-year increase of 27.59%, and a deduction of non attributable net profit of 496 million yuan, a year-on-year increase of 23.65%.
The tight supply side slowed down the growth of revenue in the second half of the year, and the performance of Ruijie network increased significantly
The company's overall revenue in 21 years was 13.549 billion yuan, with a year-on-year increase of 31.49%, of which Q4 revenue was 4.357 billion yuan, with a year-on-year increase of 16.43% and a month-on-month increase of 11.60%. The growth rate of revenue in the second half of the year slowed down as a whole, mainly due to the limited industrial capacity of some general chips and the panic preparation of special chips, the overall supply of the company was tight, resulting in the delay of order delivery. Therefore, the company strengthened its strategic preparation, At the end of the year, the amount of raw materials was 1.688 billion yuan, a year-on-year increase of 137.15%; At the end of the year, the contract liabilities were 541 million yuan, with a year-on-year increase of 131.97%, which reflected that the company had sufficient orders and the long-term business trend continued to improve.
From the perspective of subsidiaries, the revenue of Ruijie network in 21 years was 9.189 billion yuan, a year-on-year increase of 37.19%, the net profit was 475 million yuan, a year-on-year increase of 53.06%, and the net interest rate increased to 5.2% from 4.6% in the same period last year; On December 2, 2001, the split listing of Ruijie network was approved by Shenzhen Stock Exchange. After listing, the internal value of Ruijie network's core business will be fully released. At the same time, after the split, the company still holds 45% equity of Ruijie network and remains the controlling shareholder. Although the equity of its subsidiaries is diluted, the development of Ruijie network is expected to accelerate, so as to improve the overall profitability of the company in the future. The revenue of shengteng information in 21 years was 1.469 billion yuan, with a year-on-year increase of 17.35%. On March 24, 22, the people's Bank of China held a 2022 Video Conference on currency, gold and silver and security work, and proposed to steadily promote the pilot research and development of digital RMB. The main business of shengteng information is POS machines and bank hardware facilities, which is expected to fully benefit from the high prosperity of the industry. The 21-year revenue of star wisdom was 977 million yuan, a year-on-year increase of 4.49%, and the net profit was 122 million yuan, a year-on-year increase of 3.93%.
The enterprise network is the leader in the market segment, fully benefiting from the digital economy + counting East and West
The company and its subsidiaries are in a leading position in multiple market segments of the enterprise network: in the field of smart network, according to IDC data, the Ethernet switch market share of Ruijie network is the third in China in 2021, and the enterprise WLAN market share is the third in China, among which the shipment volume of wi-fi6 products ranks the first; In the field of zhihuiyun, according to IDC data, in 2021, the market share of desktop cloud terminal VDI of shengteng information ranked first in China, the market share of thin client ranked first in Asia Pacific and China.
In January 2022, the State Council issued the "14th five year plan" for the development of digital economy, proposing to strengthen the construction of digital infrastructure, jointly promote digital industrialization and industrial digitization, and enable the transformation and upgrading of traditional industries. Recently, the two major operators of China Mobile and telecom disclosed the 22 year capital expenditure guidelines, of which the capital expenditure of China Mobile's computing power network was 48 billion yuan, and the amount of China Telecom Corporation Limited(601728) industry digital investment increased by 62% to 27.9 billion yuan year-on-year, focusing on the implementation of the national Eastern and Western computing deployment and improving the cloud network integration capacity serving the digital transformation. In the context of digital computing in the East and digital economy, we believe that the demand for digital communication products will usher in rapid growth, and the company, as China's ICT head enterprise, is expected to benefit from the core.
Investment suggestion: the company fully benefits from digital economy + counting from the east to the west, and its performance is expected to increase greatly. Regardless of the impact of Ruijie network spin off and listing, we expect the net profit of the company in 22-24 years to be 864 million / 1255 million / 1773 million respectively, corresponding to 15 times / 10 times / 7 times PE, and 28 times the valuation center of the company in recent five years. Maintain a "recommended" rating.
Risk tip: the demand for digital communication is less than expected, and the market expansion of operators is less than expected
