\u3000\u3 Guocheng Mining Co.Ltd(000688) 100 Willfar Information Technology Co.Ltd(688100) )
Event: the company released the first quarterly report of 2022. In 22q1, the industry revenue was 377 million yuan, a year-on-year increase of 19.36%, the net profit attributable to the parent was 65.09 million yuan, a year-on-year increase of 22.54%, and the non net profit deducted was 61.8 million yuan, a year-on-year increase of 28.27%. At the same time, the company issued the announcement on the plan of controlling shareholders to increase their shareholding in the company. The controlling shareholder of the company, Weisheng group, plans to increase its shareholding of 2.5-5 million shares within six months from April 20, 2022.
The revenue and net profit increased, the orders on hand were sufficient, and the operating net cash flow increased significantly
1) the company achieved double growth in revenue and net profit in 22q1, and its profitability increased steadily compared with the same period last year; 2) Net operating cash flow reached 21.13 million yuan, a year-on-year increase of 319.97%; 3) The company signed 573 million yuan of new contracts in the first quarter, an increase of 41.08% year-on-year. By the end of 22q1, the contracts in hand were 1.846 billion yuan, with strong growth momentum in the future; 4) Based on the confidence in the future development of the company and the recognition of the long-term investment value of the company, the controlling shareholder Weisheng group plans to hold an additional 2.5-5 million shares.
We will continue to maintain the leading position in the industry, grasp high-quality customer resources and help improve the industry
The company continues to maintain its industry advantages. According to the statistical results of the bid winning situation of the State Grid and China Southern Power Grid over the years, the company's products are among the best and are in the first echelon in the industry. At the same time, the company was shortlisted in 23 provincial power companies in 21 years, with a total bid winning amount of nearly 330 million yuan in provincial procurement bidding, ranking second in market share. Relying on independent R & D and innovation capability, high-quality manufacturing strength, reliable supply chain and advanced quality assurance system, the company has established long-term and sustainable cooperative relations with central enterprises such as State Grid and China Southern Power Grid and world top 500 enterprises such as Siemens. In the third batch of bidding procurement (including power consumption information collection) added by the State Grid in 2022 in March 22, the company won two bidding packages, with a total winning amount of about 42.15 million yuan, ranking first on the whole. In addition, in 2021, the company became a strategic cooperative enterprise of Tencent in the field of Internet of things, and introduced Tencent's strategic investment to power the industrial Internet and digital intelligent city.
Grasp the policy dividend and have a broad market space in the future
Benefiting from policies in various fields, the company's businesses are expected to fully contribute to the company's future growth. 1) Digital Economy: in January of 22, the State Council issued the "14th five year plan" for the development of digital economy, making it clear that during the "14th five year plan" period, digital industrialization and industrial digitalization will continue to be promoted. The 14th five year plan proposes that the added value of core industries of digital economy will account for 10% of GDP by 2025. 2) Digital power grid: the State Grid plans to invest 350 billion US dollars in the next five years to promote the transformation and upgrading of the power grid. In January 2022, the State Grid held an annual working meeting and planned to invest 501.2 billion yuan in the power grid in 2022, a record high. According to the basic ideas of the 14th five year plan for the development of China Southern Power Grid, the total investment is expected to reach 670 billion yuan, including 320 billion yuan for the distribution network. 3) Smart energy: in February 2022, the national development and Reform Commission and the National Energy Administration jointly issued the opinions on improving the institutional mechanisms and policies and measures for green and low-carbon energy transformation, which proposed to promote the market-oriented construction of power demand response, promote the integration of demand side adjustable resources into power balance, give full play to the role of demand side resources in reducing peak and filling valleys, promoting the balance of power supply and demand and adapting to the operation of new energy power. 4) Smart water: in January 2022, the Department of housing and urban rural development and the general office of the national development and Reform Commission jointly issued the notice on strengthening the leakage control of public water supply network, which requires that the leakage rate of urban public water supply network should be controlled within 9% by 2025. 5) Smart water conservancy: in March 2022, Premier Li Keqiang chaired an executive meeting of the State Council, emphasizing that water conservancy projects are livelihood projects, development projects and safety projects. This year, another batch of projects that have been included in the plan and have mature conditions will be started. The scale of water conservancy investment in 2022 will strive to exceed 800 billion yuan. 6) Smart fire fighting: in February 2022, the State Council issued the national emergency system plan for the 14th five year plan, which stressed that the level of safety production in key industries should be greatly improved, and major safety accidents such as hazardous chemicals, mines, transportation, construction and fires should be effectively curbed. The reporting of disaster and accident information is timely and accurate, and the public coverage of disaster early warning information is 90%.
Profit forecast and investment suggestions: looking forward to the future, during the 14th Five Year Plan period, a total investment of about 3 trillion yuan will be invested in the new power system with new energy as the main body to help achieve the dual carbon goal. The national power grid will further accelerate the pace of power grid digital transformation. The company's main business mainly focuses on intelligent products at the distribution and consumption side, which is expected to benefit fully. With the development strategy of "IOT world, core and future", the company is one of the first enterprises to layout the core technology of energy Internet. It has accumulated many years of application and development experience in the industry, focusing on the Internet of things of power and smart city. With a complete industrial chain layout, the company is a leading energy Internet comprehensive solution provider in China, with broad growth space in the future. It is estimated that the net profit of 22-24 years will be RMB 457 million, RMB 610 million and RMB 815 million respectively, corresponding to 19 / 14 / 11 times of PE respectively, maintaining the "buy" rating.
Risk warning: risk of new technology R & D and new product development; The concentration of downstream customers may cause business fluctuations; Market competition risk; The overseas business development caused by the macro environment and epidemic situation did not meet expectations; The project delivery progress is less than expected, etc
