\u3000\u30 China Baoan Group Co.Ltd(000009) 38 Unisplendour Corporation Limited(000938) )
Event description:
On March 25, 2022, the company released its annual report for 2021, realizing an operating revenue of 67.638 billion yuan, a year-on-year increase of 12.57%, and a net profit attributable to the parent company of 2.148 billion yuan, a year-on-year increase of 18.51%.
Event comments:
The company's performance growth is in line with expectations, and the operating revenue and profit are further improved.
The gross profit margin of the company remained stable as a whole. The gross profit margin of ICT infrastructure business decreased by 3.45 percentage points year-on-year, mainly affected by the rise of raw materials and changes in product structure. It is expected to improve in 2022.
The company continued to increase R & D investment, with an investment of 4.881 billion yuan in 2021, a year-on-year increase of 14.15%.
The ICT market position has been further improved and the overseas market has been steadily developed. The company's Ethernet switch in China accounted for 35.2%, maintaining the second place; X86 servers in China accounted for 17.4%, and the share increased to the second. son
The influence of Xinhua 3 in the international market is expanding day by day. At present, there are 12 overseas subsidiaries. The company continues to make breakthroughs in the operator market and is expected to further improve in the future.
The subsidiary Xinhua 3 continues to expand the Chinese operator market, and its position as a core supplier continues to be consolidated. In 2021, the business income of Chinese operators reached 6.415 billion yuan, a year-on-year increase of 13.04%.
It has won the bid for many times for centralized procurement projects of operators and continued to break through the high-end market. It ranks first in the overall share of China Mobile's high-end router and high-end switch products, and has achieved the first breakthrough of vbras router in China Mobile's centralized purchase; Deeply participated in the construction of smart man in 6 Wuhan Department Store Group Co.Ltd(000501) 9 provinces, and deployed in China Telecom Corporation Limited(601728) 5gstn bearer network covering 20 provinces.
Ziguang cloud has a future layout and makes all-round efforts, with substantial growth in operating revenue and continuous improvement in net profit.
In 2021, the company acquired 46.67% of the equity of Ziguang cloud. Ziguang cloud achieved a revenue of 1.009 billion yuan, a year-on-year increase of 67.84%. The net profit attributable to the parent company was - 90.74 million yuan, and the loss decreased by 43.55% year-on-year.
Ziguang cloud continues to build a core cloud platform and strengthen the construction of cloud operation and service capabilities. 43 nodes have been built nationwide, covering 22 provinces. Many smart city projects have been won successively.
The reorganization of the major shareholder Ziguang group is basically implemented, which is conducive to the future business development of the company. At present, Ziguang group has entered the implementation stage of restructuring, and the debt problem is expected to be solved, which is conducive to the stable development of the company.
Investment suggestions:
We estimate that the operating revenue of the company from 2022 to 2024 will be 79.42 billion yuan, 92.86 billion yuan and 107.91 billion yuan respectively, and the net profit attributable to the parent company will be 2.62 billion yuan, 3.44 billion yuan and 4.09 billion yuan, corresponding to PE of 20.64x, 15.7x and 13.22x. Maintain the "buy" rating.
Risk tips:
The epidemic continues to spread; The growth of operators' business and overseas business is less than expected; Industry competition intensifies.
