\u3000\u30 China Baoan Group Co.Ltd(000009) 77 Inspur Electronic Information Industry Co.Ltd(000977) )
Event: the company released its 2021 annual report, and achieved an annual revenue of 67.048 billion yuan, a year-on-year increase of 6.36%; The net profit attributable to the parent company was 2.003 billion yuan, a year-on-year increase of 36.57%; The net profit attributable to the parent company after deduction was 1.797 billion yuan, a year-on-year increase of 27.56%; The performance is in line with expectations.
Various businesses continued to maintain stable growth. During the period, the cost rate was optimized to improve the profitability: in 2021, the revenue of servers and components was 64.342 billion yuan, a year-on-year increase of 4.02%, and the revenue of it terminals and spare parts was 2.458 billion yuan, a year-on-year increase of 160.70%. The business growth was stable. The sales expense rate, management expense rate and R & D expense rate were 2.18%, 1.08% and 4.36% respectively, with changes of – 0.78, – 0.22 and + 0.18 percentage points respectively over the same period of last year. In 2021, the year-on-year growth rates of the company’s net profit attributable to the parent and net profit deducted from non attributable to the parent were 36.57% and 27.56% respectively, significantly higher than the year-on-year growth rate of annual revenue of 6.36%, mainly due to the improvement of profitability driven by the decline of sales expense rate and management expense rate. The gross profit margin was 11.44%, basically the same as last year.
Servers, storage and other products continue to rank among the top in the world: according to IDC data, the company’s server products ranked second in the world in 2021, and continued to lead the Chinese market with a market share of 30% +; In the first half of 2021, the market share of the company’s AI server products ranked first in the world, with a market share of more than 20%. According to Gartner data, the company’s storage sales ranked among the top five in the world in 2021 and ranked second in the world’s second storage market. According to Q4 data of synergy in 2021, the company’s servers ranked first in the global public cloud infrastructure computing market share for 11 consecutive quarters.
“Counting from the east to the west” project brings a new round of IT infrastructure construction boom cycle: in January 2022, the general secretary of Xi Jinping proposed to “build a national integrated data center system” in the article “constantly strengthening, optimizing and expanding China’s digital economy”; In February 2022, the construction of National Computing hub nodes was started in 8 places across the country, and 10 national data center clusters were planned. The overall layout design of the national integrated big data center system was completed, and the “counting from the east to the west” project was officially launched. As the leading enterprise of server in China, the company is expected to take the lead in benefiting.
Profit forecast, valuation and rating: considering that the growth of it expenditure of Internet manufacturers has slowed down, the company lowered its revenue forecast for 22-23 years to 77.092/87.490 billion yuan, which is – 7.31% / – 8.50% compared with the previous forecast, and increased its revenue forecast for 24 years to 98.419 billion yuan; The forecast of the company’s net profit attributable to the parent company for 22-23 years was lowered to 2.386/2.833 billion yuan, which was – 1.32% / – 3.21% compared with the previous forecast, and the forecast of net profit attributable to the parent company for 24 years was 3.362 billion yuan. The corresponding EPS of 22-24 years is 1.64/1.95/2.31 yuan respectively, and the corresponding PE is 16x / 13X / 11x respectively. Optimistic about the company as a server leader, benefiting from the improvement of the industry margin and maintaining the “overweight” rating.
Risk tip: the capital expenditure of Internet manufacturers is lower than expected, and the competition intensifies.
