\u3000\u3 Guocheng Mining Co.Ltd(000688) 100 Willfar Information Technology Co.Ltd(688100) )
Key investment points
Event: on April 19, Willfar Information Technology Co.Ltd(688100) released the report for the first quarter of 2022. In the first quarter of 2022, the operating revenue was 376.81 million yuan, with a year-on-year increase of 19.36%, the net profit attributable to the parent company was 65.09 million yuan, with a year-on-year increase of 22.54%, and the net profit deducted was 61.8 million yuan, with a year-on-year increase of 28.27%. The performance is in line with our expectations.
The revenue and net profit continued to grow and hit a record high, and the orders on hand were full: 6881 Shanghai Kehua Bio-Engineering Co.Ltd(002022) the first quarter grew steadily, with an operating revenue of 376.81 million yuan, a year-on-year increase of 19.36%; The net profit attributable to the parent company was 65.09 million yuan, a year-on-year increase of 22.54%; Non net profit deducted reached 61.8 million yuan, a year-on-year increase of 28.27%; The net operating cash flow was 21.13 million yuan, 3.2 times higher than that of the previous year Willfar Information Technology Co.Ltd(688100) will continue to benefit from the favorable industry of new power system construction, Willfar Information Technology Co.Ltd(688100) signed new contracts of 573 million yuan in the first quarter, an increase of 41.08% year-on-year. By 2022, Q1 had contracts in hand of 1.846 billion yuan, and orders in hand were full; On April 19, it was announced that the major shareholder Weisheng group was optimistic about the prospect of Weisheng Trust Alliance Information Development Inc.Ltd.Shanghai(300469) and planned to increase its total holdings of no less than 2.5 million shares and no more than 5 million shares within six months from April 20, 2022.
The layout of the whole industrial chain has significant advantages and continues to benefit from the construction of new power system: the company focuses on the relevant products and solutions of "connection and communication" of the Internet of things, and has the ability to provide users with digital solutions such as data management, from the underlying chip design, data perception and data acquisition, to the communication networking technology to ensure high-speed data transmission and stable connection, According to the technology development direction and the mainstream demand of the market under the new situation, the company has formed a moat in technology and products, covering all levels of the energy Internet structure, providing users with one-stop solutions and continuously leading the industry market. According to the statistical results of the bid winning situation of State Grid and China Southern Power Grid over the years, the company's products are among the best. Hplc2021 was shortlisted as 23 provincial power companies, with a total bid winning amount of nearly 330 million yuan in provincial procurement bidding, ranking second in market share. At the same time, Willfar Information Technology Co.Ltd(688100) is also the only enterprise outside the network to participate in the national key R & D plan project of "key technologies of digital power grid" of China Southern Power Grid Digital Research Institute. We believe that Willfar Information Technology Co.Ltd(688100) based on the advantages of current products and technologies, continues to be optimistic about the steady growth of future performance.
Profit forecast and investment rating: we maintain the profit forecast from 2022 to 2024. The net profit attributable to the parent company is expected to be 452 million yuan, 594 million yuan and 740 million yuan respectively, EPS is 0.9 yuan, 1.19 yuan and 1.48 yuan respectively, and the corresponding PE valuation is 19x / 15x / 12x respectively. We continue to be optimistic about Willfar Information Technology Co.Ltd(688100) benefiting from the construction dividend of new power system. At present, there are sufficient orders on hand and the performance growth is stable. We maintain the "buy" rating.
Risk warning: the investment of State Grid and South grid is less than expected; The bidding progress is less than expected.
