\u3000\u3 Shengda Resources Co.Ltd(000603) 019 Dawning Information Industry Co.Ltd(603019) )
Event overview
On April 14, 2022, Dawning Information Industry Co.Ltd(603019) released the annual report for 2021. In 2021, the company achieved an operating revenue of 11.2 billion yuan, an increase of 10.23% year-on-year; The net profit attributable to shareholders of listed companies was 1.158 billion yuan, a year-on-year increase of 40.78%; The net profit attributable to the shareholders of the listed company after deducting non profits was 773 million yuan, with a year-on-year increase of 46.98%.
High R & D investment broke through the core key technologies, and the company’s profitability continued to improve
In 2021, the company invested 1.534 billion yuan in R & D, accounting for 13.69% of the main business income. The company has invested 3.395 billion yuan in R & D in recent three years. In 2021, 575 new R & D personnel were added, and the number of R & D personnel reached 2614. The number of R & D personnel accounted for 63.71% of the total number of the company. During the reporting period, the company obtained 90 new patents, including 40 invention patents, 33 utility models and 17 design patents.
Through high R & D investment, develop high-end computers, IO chips and IO modules based on domestic processor chips (such as storage IO module design for the field of cloud computing and artificial intelligence), bottom management firmware (based on open source BIOS and BMC code architecture, develop BIOS startup firmware and BMC remote management firmware supporting domestic processors), and break through the core key technologies of high-end computers based on domestic processors, The company’s core ability of independent innovation has been improved.
At the same time, the independent innovation breakthrough of core key technologies will contribute to the improvement of the company’s profitability. The gross profit margin of the company’s main products will increase significantly in 2021, of which the gross profit margin of high-end computers will increase from 14.87% to 16.20%; The gross profit margin of storage products increased from 22.72% to 26.96%.
Leader of liquid cooling technology, direct beneficiary of “counting East and counting West”
In 2021, the “ecological integrated big data center” scheme released by the company can reduce the pue of computing facilities (total energy consumption of data center / energy consumption of IT equipment) to 1.04 and reduce the energy consumption by 30%. Based on high-density design and immersion liquid cooling technology, the ultra-high-density intensive deployment of equipment can be realized, and the power density of single cabinet can reach 200kW. China has set clear restrictions on pue of new IDC projects. As a leader in liquid cooling technology, the company will continue to make profits.
At the same time, the company actively promotes the implementation of data center projects in “East data and West computing” hub nodes such as Beijing, Tianjin, Chongqing and Gansu, so as to cover the country’s high-quality computing resources, distributed unified storage and intelligent computing applications to meet the data computing, storage and transmission needs of customers in various industries.
The company continues to expand in the direction of “cloud computing + big data + artificial intelligence”, and helps various industries complete transformation and upgrading, kinetic energy conversion and breakthrough innovation by means of “big computing” + “big data”. In the field of AI computing, the company has built a complete AI computing product line to support a variety of applications suitable for different application scenarios.
Haiguang information’s IPO meeting highlighted the leading position of China’s computing power
On March 16, 2022, the Shanghai Stock Exchange disclosed that the 19th review meeting of 2022 of the science and Innovation Board Listing Committee of Shanghai Stock Exchange was held in the morning of March 16, 2022. Haiguang Information Technology Co., Ltd. (initial public offering): it meets the issuance conditions, listing conditions and information disclosure requirements.
In the short term, industry Xinchuang will lead to the rapid growth of domestic chip server shipments. Among them, the x86 architecture haiguang chip has ecological advantages. It is expected that the shipments will continue to grow at a high rate, Dawning Information Industry Co.Ltd(603019) is the primary beneficiary.
In the medium and long term, IPO fund-raising is conducive to the development of follow-up products of haiguang, develop its own new generation architecture on the basis of technology digestion and absorption, and lead the development of CPU and DCU in China. As a core member of Dawning Information Industry Co.Ltd(603019) “China computing power” ecosystem, haiguang information contributes to the development and growth of the whole ecosystem, and Dawning Information Industry Co.Ltd(603019) as a “core enterprise of ecosystem” benefits directly.
Investment advice
According to the company’s annual report, we raised the company’s revenue forecast of 22-23 years by 12.76/14.787 billion yuan to 12.767147.92/16.924 billion yuan; Raise the forecast of earnings per share (EPS) of 1.1/1.52 yuan in 22-23 years to 1.11/1.53/2.00 yuan in 22-24 years, corresponding to the closing price of 28.04 yuan / share on April 14, 2022, and PE of 25.3/18.3/14 times respectively, maintaining the “buy” rating of the company.
Risk tips
1) the epidemic has led to the decline of IT budget of manufacturing enterprises; 2) The intensification of industry competition leads to the decline of profitability; 3) The progress of core technology breakthrough is lower than expected; 4) The industry’s information innovation process is lower than expected.
