\u3000\u30 China Baoan Group Co.Ltd(000009) 38 Unisplendour Corporation Limited(000938) )
Matters:
The company announced in its 2021 annual report that in 2021, the operating revenue was 67.638 billion yuan, a year-on-year increase of 12.57%, the net profit attributable to the parent company was 2.148 billion yuan, a year-on-year increase of 18.51%, and the EPS was 0.751 yuan. The profit distribution plan for 2021 is: it is proposed to allocate 1 yuan (including tax) for every 10 shares, and the capital reserve will not be converted into share capital.
Ping An View:
The company’s performance grew steadily in 2021, and the revenue structure was further optimized. According to the company’s announcement, the company achieved an operating revenue of 67.638 billion yuan in 2021, a year-on-year increase of 12.57%, a net profit attributable to the parent company of 2.148 billion yuan, a year-on-year increase of 18.51%, and a steady growth in performance. In terms of revenue structure, the company’s ICT infrastructure and service business realized a revenue of 41.348 billion yuan, a year-on-year increase of 24.81%, accounting for 61.13% of operating revenue, an increase of 5.99 percentage points year-on-year; The company’s IT product distribution and supply chain service business increased slightly by 1.07% year-on-year. The proportion of ICT infrastructure and service business revenue in revenue was further increased, and the company’s revenue structure continued to be optimized. In 2021, the company continued to lead the market share of China’s enterprise WLAN, Ethernet switch, enterprise network router, x86 server and other products. The company has a solid leading position in China’s ICT industry.
The company’s operator business continued to make breakthroughs. In 2021, Xinhua III, the holding subsidiary of the company, continued to make breakthroughs in the field of centralized procurement of operators, and its position as a core supplier continued to be consolidated. Xinhua III ranks first in the overall share of China Mobile’s centralized purchase of high-end routers and high-end switches from 2021 to 2022, and has achieved the first breakthrough of vbras router equipment in China Mobile’s centralized purchase project; Obtain 20% share in the centralized purchase of new distributed block storage of China Mobile from 2021 to 2022, and realize the first breakthrough in the bidding project of China mobile block storage type; Successively won the bid for China mobile network cloud resource pool, PC server centralized purchase, hardware firewall centralized purchase and other projects. Xinhua III won the bid for two packages of high-end firewall and middle-end firewall of 6 Lvjing Holding Co.Ltd(000502) 021 firewall centralized purchase project with the first share. In addition, key projects such as China Telecom Corporation Limited(601728) 2021 STN equipment construction project and China Telecom Corporation Limited(601728) core route switching equipment centralized procurement project of Xinhua No. 3 bid. In 2021, the business revenue of Chinese operators reached 6.415 billion yuan, a year-on-year increase of 13.04%, and the annual delivery amount increased rapidly.
The company’s Ziguang cloud business performance is outstanding. Ziguang cloud company, the holding subsidiary of the company, focuses on cloud services, smart city and industry cloud, faces the government and enterprise customer market, and continues to build the R & D, operation and service capabilities of the core platform based on the isomorphic hybrid Cloud Architecture. The upgraded Ziguang cloud 3.0 realizes the complete isomorphism of public cloud and private cloud technology and architecture, meets the needs of multi cloud distributed deployment, unified management and consistent experience, and provides 16 categories and more than 300 cloud services; Focus on launching large-scale cloud hosts, online container services, optimizing network architecture, comprehensively improving cloud service security, enriching cloud service content and meeting customers’ diversified needs; Improve computing, storage, network, security, big data, database, AI and other services based on different technical architectures, and have the service ability of one cloud multi-core, one cloud unified management and computing power coordination to support customers’ domestic cloud needs. Ziguang cloud has built 43 nodes nationwide, covering 22 provinces, including 8 self built nodes, 11 joint venture nodes, and 24 government cloud and exclusive cloud nodes. In 2021, ziguangyun company achieved a revenue of 1.009 billion yuan, a year-on-year increase of 67.84%, a net profit attributable to the parent company of -90.741 million yuan, a year-on-year decrease of 43.55%, and a good development momentum.
Profit forecast and investment suggestions: according to the company’s 2021 annual report, we adjusted the performance forecast and estimated that the net profit attributable to the parent company from 2022 to 2024 would be 2.66 billion yuan (the previous value was 2.719 billion yuan), 3.33 billion yuan (the previous value was 3.351 billion yuan) and 4.186 billion yuan (New), respectively. EPS would be 0.93 yuan, 1.16 yuan and 1.46 yuan, and the PE corresponding to the closing price on March 25 would be about 20.9, 16.7 and 13.3 times respectively. The company’s products cover the industrial chain of “core cloud network edge end”. It is a leading ICT infrastructure and service provider in China. At present, the company has a solid leading position in China’s ICT infrastructure and service market. The proportion of ICT infrastructure and service business income in the revenue of the company was further increased, and the revenue structure of the company was further optimized. The company’s operator business continues to make breakthroughs, and the business performance of Ziguang cloud is outstanding. We are optimistic about the future development of the company and maintain the “recommended” rating of the company.
Risk tips: (1) ICT infrastructure and service business development did not meet expectations. The company is a leading provider of ICT infrastructure and services in China. Ethernet switches, enterprise routers, x86 servers and other products have a leading market share in China. However, if the company cannot keep the continuous updating and iteration of products, there will be a risk that the development of ICT infrastructure and service business of the company will not meet the expectations. (2) The business development of Ziguang cloud did not meet expectations. Ziguang cloud 3.0 realizes the unified architecture and comprehensive technical isomorphism of public cloud, private cloud, hybrid cloud and edge cloud through ziluan platform. If the user acceptance of Ziguang cloud in smart city, government affairs, transportation, education, medical treatment, finance, industrial Internet and other industries in the future does not meet the expectations, there will be a risk that the development of Ziguang cloud business of the company will not meet the expectations. (3) The reorganization progress of the company’s indirect controlling shareholders did not meet expectations. On January 17, 2022, the manager of Ziguang Group Co., Ltd. received the civil ruling served by Beijing No. 1 Intermediate People’s court. According to the civil ruling, the first intermediate people’s Court of Beijing ruled to approve the reorganization plan of the substantive merger and reorganization of seven enterprises including Ziguang Group Co., Ltd., and terminate the reorganization procedures of seven enterprises including Ziguang Group Co., Ltd. If the restructuring progress of Ziguang group, the indirect controlling shareholder of the company, does not meet the expectations, it may have an impact on the business development of the company.
