\u3000\u30 China Baoan Group Co.Ltd(000009) 38 Unisplendour Corporation Limited(000938) )
1. Event: the company released the first quarterly report of 2022, realizing a revenue of 15.34 billion yuan, a year-on-year increase of 13.6%; The net profit attributable to the parent company was 370 million yuan, a year-on-year increase of 35.3%; The net profit deducted from non parent company was 360 million yuan, with a year-on-year increase of 162.5%.
2. The business growth of the two high-quality subsidiaries was good, and the performance growth in the first quarter exceeded expectations
In 2022q1, the revenue of ICT infrastructure products of the company has increased rapidly, digital application solutions have been implemented one after another, and the field of cloud and intelligence has maintained a good growth trend. In addition, the company has steadily explored overseas markets, and the product sales revenue and overseas partners have continued to increase. In 2022q1, the company achieved a revenue of 15.342 billion yuan, a year-on-year increase of 13.6%; The net profit attributable to the parent company was 370 million yuan, a year-on-year increase of 35.3%. Of which:
Third, the rapid growth of Xinhua business and international operators. Xinhua III 2022q1, the holding subsidiary of the company, achieved a revenue of 10.47 billion yuan, a year-on-year increase of 27.8%; The net profit was 660 million yuan, a year-on-year increase of 33.1%.
Among them, China's government and enterprise business focuses on 18 industries, accelerating the implementation of projects in many fields such as new smart city, smart transportation, smart medical treatment, smart education, smart energy, smart water conservancy, industrial Internet and smart Park, and realizing rapid business growth (2021 annual report); The business delivery amount of Chinese operators has increased rapidly, and the market share has been increasing. The international business has been steadily expanded, and the product sales revenue and the number of overseas partners have continued to increase.
Ziguang cloud has actively expanded the industry cloud, and digital solutions have been applied one after another. The business growth in the field of cloud and intelligence is good. In 2021, the company acquired 46.67% controlling stake of Ziguang cloud and became a wholly-owned subsidiary of the group. At the same time, the company newly built Ziguang cloud 3.0 to achieve unified architecture, brand and service, provide global coverage and multi cloud management capabilities of public cloud, private cloud, hybrid cloud and edge cloud, and apply AI to cloud infrastructure, cloud native architecture, data console and other fields to build a full stack of smart cloud for smart city, government affairs, transportation Digital services are provided in the whole scene of education, medical treatment, manufacturing and other industries. (2021 annual report)
3. The expense side will remain stable and increase strategic goods preparation. It is expected that with the business development, the net operating cash flow is expected to return to positive quickly
The cost side continued to control, the rate remained basically stable, and continued to increase the R & D investment of "cloud smart native". The overall cost rate was 16.0%, with a year-on-year increase of 1.67 PCT, mainly due to the year-on-year increase of 1.12 PCT in the R & D cost rate. The company increased the R & D investment in "cloud intelligence native" technology and strengthened the deep integration of digital technology and industrial application scenarios. With the company's continuous increase in the application R & D of digital solutions, the overall cloud and intelligent business is expected to accelerate its growth. Among them, the ratio of sales, management, R & D and financial expenses is 7.57% / 1.27% / 7.46% / - 0.29%, with a year-on-year change of + 0.15 / / - 0.12 / + 1.12 / + 0.52pct.
Cash flow and asset side, enterprise business structure transformation, superposition of a large number of strategic goods preparation, and short-term negative operating net cash flow. It is expected to return to positive rapidly with business development. The company continued to increase strategic stock (2022q1 inventory was 20.96 billion yuan, an increase of 13.8% over the end of 2021). Considering the cash ratio of goods sold by the company, 2022q11 24. It shows a trend of continuous stabilization and recovery, and the overall business is still in the stage of rapid development.
4. Build the core competence of "cloud intelligence native" and continue to promote the strategy of "core cloud network edge"
The company continues to lay out the "core cloud network edge end" industrial chain, grasp the opportunities of urban and industrial development and reconstruction, rely on years of ICT technology accumulation and digital experience, and based on the "homogeneous hybrid cloud" cloud platform, continue to strengthen the core ability of "cloud intelligence native", the top-level design ability of digital transformation and the resource ability of fully integrating ecological partners, from intelligent connection, intelligent computing, intelligent storage In the six fields of cloud computing and cloud service business, active security and intelligent terminal, we have continuously launched smart project solutions and intelligent network products such as smart city, smart medical treatment, smart transportation and smart education, enabling the digital transformation of industry customers.
5. Investment suggestions
Considering the company's future operator business and overseas market channel development and maintaining the profit forecast, it is expected to achieve a revenue of 76.32/87.38/101.22 billion yuan from 2022 to 2024, with earnings per share of 0.93/1.16/1.44 yuan respectively, corresponding to 15.76 yuan / share on April 28, 2022, and the closing price PE of 17.0/13.5/11.0 times respectively, maintaining the "buy" rating.
6. Risk warning: risk of macroeconomic environment change; The epidemic affects the upstream supply of the industrial chain: the uncertainty of covid-19 epidemic leads to the failure of upstream chip manufacturers to meet the expansion of production capacity and realize the risk of user delivery; R & D and market competition risks; Exchange rate fluctuation risk; Systemic risk.
