\u3000\u3 Jointo Energy Investment Co.Ltd.Hebei(000600) 728 Pci Technology Group Co.Ltd(600728) )
Event overview
On April 6, Pci Technology Group Co.Ltd(600728) issued the bid winning announcement of the wholly-owned subsidiary project. Xinkejiadu, a wholly-owned subsidiary of the company, as the leader of the consortium, received the letter of acceptance from Chengdu rail transit Group Co., Ltd. and determined that the consortium was the bid winner of the integrated monitoring (including communication) system integration and installation project of Chengdu rail transit line 17 phase II, line 18 phase III and line 19 phase II, with a total bid winning amount of 1.291 billion yuan.
Winning large orders increases the certainty of future performance
The bid winning amount of the project is 1.291 billion yuan, which is the first time that the company has won an order of more than 1 billion yuan in the West. This shows that: 1) the mode of “core independent products + industry solutions” of the company has been verified, which reflects the core competitiveness of the company’s products and solutions; 2) The national layout of the company has made great progress again. From the perspective of performance, on the one hand, the continuous winning of large orders in Changsha, Hefei, Chengdu and other places will provide strong support for the company’s future performance. Among them, the order of 2.4 billion yuan of Changsha rail transit will be accepted in April 2022, and the winning Chengdu Rail Transit Project will be accepted and implemented in the next 1-3 years; On the other hand, the bid winning of local projects is expected to continuously improve the company’s brand strength in the field of rail transit and lay the foundation for the implementation of projects in more regions in the future. We believe that this bid winning is the verification of the company’s core technical capabilities. The acquisition and implementation of large-scale projects are expected to help the company accelerate the implementation of smart + field projects in all regions of the country.
Winning the bid proves the core technical strength, and the national layout has made phased progress
In recent years, the company has promoted its business to the whole country and established six regional business platforms in Guangzhou, Guangdong, Hong Kong and Macao, central and southern China, Western China, East China and North China, covering 29 provinces / cities / autonomous regions in China, so as to facilitate the information exchange and cooperation of pre-sales design, in-sales delivery and after-sales service. At present, the company has obtained new orders in Shenzhen, Hefei, Changsha, Chengdu and other places, and the national business promotion is quite effective. The project in Chengdu is the company’s order again in the mode of “core independent products + industry solutions” after Guangzhou and Changsha. It is also the largest intelligent project won by the company in the western region. We believe that this large order in Chengdu is a further verification of the company’s national layout ability. With the promotion of the company’s business throughout the country, the company is expected to continue to obtain orders from a large number of new metro planning cities such as Beijing, Hangzhou and Wuhan in the future.
With the new infrastructure of digital economy, the company is expected to seize the opportunity and develop rapidly
Digital economy is currently an important pole of China’s economic development. Under the 10% target, informatization and intellectualization in various fields are expected to accelerate. From the perspective of the company, the company is one of the first enterprises to enter the smart city and smart rail transit, and has accumulated profound industry know-how and scenario data. At this stage, on the one hand, the company has increased its investment in self-research and built a middle platform of AI, AR and data technology, with the income of self-research products reaching 10%; On the other hand, pay close attention to the “big transportation” track (smart rail transit and Urban Smart transportation) and two main application scenarios (public safety and emergency management), promote the business layout to all parts of the country, and grasp a large number of business opportunities emerging under the digital economy. We believe that the wisdom + scenario at the industry level continues to accelerate the implementation, and the company has a deep area, has the ability to seize opportunities, and is expected to achieve long-term and stable performance growth.
Investment advice
Under the catalysis of policies such as the accelerated landing of AI + scenarios and digital economy, the company focuses on two main application scenarios: rail transit, urban traffic core track and urban safety and emergency management. It is expected to achieve rapid volume and continuous expansion of application scenarios with the help of industry experience and technology. We expect the company to achieve revenue of RMB 7.9/98/12.1 billion from 2022 to 2024, with a year-on-year increase of 27% / 24% / 23%; The net profit attributable to the parent company was RMB 590 / 840 / 1.17 billion, with a year-on-year increase of 89% / 41% / 40%, maintaining the “buy” rating.
Risk tips
1) R & D breakthrough is less than expected; 2) Policy support is less than expected; 3) Project delivery was less than expected.
