Among A-share computer enterprises, more than 100 have been listed for 10 years and more than 30 have been listed for 15 years. Re examining these old enterprises, we found that the changes of old companies and their accompanying investment opportunities: 1) deeper technology heritage and industry accumulation; 2) Underestimated value; 3) Grasp the general trend of the industry and carry out new high growth business.
With more profound technical heritage and accumulation, it is expected to take advantage of the industry opportunities
The old companies that have worked in the industry for decades have accumulated more technology and landing capacity; On the other hand, I also have a deeper understanding of the industry. Under the first mover advantage, when the east wind blows in the industry, it is easier for old enterprises to take advantage of the wind. At this stage, many industries have ushered in information innovation, and many old enterprises have also seized the opportunity. For example, the leading power informatization enterprise Ygsoft Inc(002063) has long provided informatization products and services for enterprise management in the energy industry. At this stage, it has grasped the wave of power informatization and green power trading and opened a new growth curve of the energy Internet. For more than ten years, China Transinfo Technology Co.Ltd(002373) has served nearly 2000 large-scale intelligent transportation projects. In 2020, the company released omni-t, a global transportation solution, started platform transformation and created a business model of sustainable charging.
Years of deep cultivation have created sound fundamentals and paid attention to high-quality “old” companies with undervalued value
With the opening of the scientific innovation board, a number of specialized and new enterprises have been bred in the computer industry, but the market ignores the opportunities brought by “old” companies due to undervaluation. Among them, China Transinfo Technology Co.Ltd(002373) achieved steady growth in revenue and profits with the help of dividends brought by platform transformation and business model reform; Zhejiang Dahua Technology Co.Ltd(002236) transform to a smart IOT solution provider, actively layout innovative businesses such as software platform and AI, and realize the rapid development of Tob business. In terms of valuation, China Transinfo Technology Co.Ltd(002373) and Zhejiang Dahua Technology Co.Ltd(002236) correspond to price earnings ratios (TTM) of 26.7 times and 19.7 times respectively, significantly lower than the price earnings ratio of 52.1 times of computer (Shenwan) index. The undervalued value superimposes high-quality fundamentals, or ushers in a new round of investment opportunities.
Years of industrial transformation and expansion, “old” companies may usher in the upsurge of spin off and listing of subsidiaries
Old brand enterprises have been listed earlier and experienced the expansion and transformation of their main business in the process of their own development. Among them, there are many enterprises that have realized value remodeling through setting up high-quality subsidiaries. Iflytek Co.Ltd(002230) it is proposed to spin off its subsidiary iFLYTEK medical to be listed in Hong Kong with a fund-raising amount of about HK $3.9 billion. IFLYTEK medical takes intelligent medical assistant as the core product and can improve the electronic medical record system of grass-roots hospitals and general practice auxiliary diagnosis and treatment of 1000 common diseases through voice, template, medical intelligent recommendation and other input modes. Its performance has increased by more than three times in the past three years. Pci Technology Group Co.Ltd(600728) as a solution provider of intelligent rail transit and smart city, it invests in cloud technology, Unittec Co.Ltd(000925) and other subsidiaries. In the future, it is expected to form business collaboration in artificial intelligence, rail transit and other aspects and improve the company’s technical strength.
Suggested concern
Under the trend that strategic technology has more and more investment value, we suggest paying attention to the old enterprises with the above two to three factors: Pci Technology Group Co.Ltd(600728) , Iflytek Co.Ltd(002230) , China Transinfo Technology Co.Ltd(002373) , Ygsoft Inc(002063) , Zhejiang Dahua Technology Co.Ltd(002236) .
Risk tips
1) the epidemic situation intensifies and reduces enterprise informatization expenditure; 2) Fiscal and monetary policies are lower than expected; 3) The supply chain fluctuation increases, affecting the development of science and technology industry.
