\u3000\u3 Shengda Resources Co.Ltd(000603) 019 Dawning Information Industry Co.Ltd(603019) )
Event: the company released its annual report for 2021. In 2021, the company's operating revenue was 11.2 billion yuan, a year-on-year increase of 10.23%; The net profit attributable to the parent company was 1.158 billion yuan, a year-on-year increase of 40.78%; Net profit deducted from non parent company was 773 million yuan, with a year-on-year increase of 46.98%, slightly exceeding market expectations.
Key investment points
Net profit continued to grow rapidly: the company achieved a revenue of 11.2 billion yuan in 2021, a year-on-year increase of 10.23%; The net profit attributable to the parent company was 1.158 billion yuan, a year-on-year increase of 40.78%. The company has realized that the growth rate of net profit attributable to the parent company has been more than 37% for five consecutive years from 2017 to 2021, and the net profit attributable to the parent company has continued to increase to 10.34%. In terms of business, the company's high-end computer business revenue in 2021 was 8.88 billion yuan, with a year-on-year increase of 10.34% and a gross profit margin of 16.20% (year-on-year + 1.39 PCT); The revenue of storage products was 1.064 billion yuan, with a year-on-year increase of 6.22% and a gross profit margin of 26.96% (year-on-year + 4.69pct); The revenue of software development, system integration and technical services was 1.253 billion yuan, a year-on-year increase of 12.98%, and the gross profit margin was 74.30% (year-on-year + 0.11pct). With the further transformation of the company to an overall solution provider with high-end computers as the core, the business quality has been significantly improved.
High end computer leaders usher in new infrastructure Dongfeng: in the "14th five year plan" in 2021, it is clearly proposed to "accelerate the construction of a national integrated big data center system". The company's advanced computing business is backed by the Chinese Academy of Sciences, with high technical barriers, leading market share in the country, and the gross profit margin of the project is much higher than that of ordinary server manufacturing. With high-end computers as the core, the company continues to expand in the direction of "cloud computing + big data + artificial intelligence". As a cloud computing software service provider, the company has built more than 50 urban cloud computing centers in total; The company's storage products are an ideal choice for the bottom storage of the national integrated big data center, and provide high-quality performance for core businesses in emerging application scenarios such as EDA and automatic driving. In February 2022, the "counting from the east to the west" project was officially launched. The company will make full use of the "new infrastructure" to release its potential, and the projects of advanced computing center and Intelligent Computing Center are expected to continue to be implemented.
The industry information innovation has been fully launched, and the performance of haiguang has a high growth: in 2021, the operating revenue of haiguang information, a joint-stock subsidiary of the company, was 2.31 billion yuan, with a year-on-year increase of 126.07%. It has turned losses into profits, and the net profit attributable to the parent company was 327 million yuan. The information and innovation industry is expected to be fully launched in 2022. We expect that the proportion of localization investment in finance and telecommunications industries is expected to double in 2022. Telecommunications, government and finance are the three industries with the largest shipments of X86 servers except the Internet. In 2020, the total shipments accounted for about 30% of the total, and there is a broad space for domestic substitution. Haiguang is a rare manufacturer authorized by the x86 instruction set in China. The x86 instruction set has the best industrial ecological support in the industry and will be fully utilized by the industry's Xinchuang.
Profit forecast and investment rating: we maintain the EPS forecast of 1.04/1.36 yuan in 20222023 and 1.73 yuan in 2024. The current market value corresponds to 27 / 21 / 16 times of PE from 2022 to 2024. We are optimistic about the development of the company in the new infrastructure market as an industry leader. Haiguang information is expected to fully benefit from industry Xinchuang and maintain the "buy" rating.
Risk tip: the competition in high-end computer industry is intensifying; Intellectual property rights and streaming risks.
