\u3000\u30 China Baoan Group Co.Ltd(000009) 38 Unisplendour Corporation Limited(000938) )
Revenue in the first quarter achieved rapid growth, better than previously expected. In the first quarter of 2022, the company's actual revenue was 15.3 billion yuan, a year-on-year increase of + 13.58%; The net profit was 372 million yuan, a year-on-year increase of + 35.3%, deducting non net profit of 363 million yuan (+ 162%), which was better than the previous expectation. Among them, Xinhua III achieved a revenue of 10.472 billion yuan, a year-on-year increase of + 28%; The net profit was 660 million yuan, a year-on-year increase of + 33%.
Benefiting from the optimization of product structure, cost reduction and efficiency increase, the gross profit margin increased month on month. In terms of profitability, the growth rate of the company's high gross profit network products was high, which led to the further improvement of the company's overall gross profit margin. In the first quarter, the comprehensive gross profit margin was 21.93% (a year-on-year increase of 3.58pct and a month on month increase of 2.95pct).
The promotion of digital economy and computing from east to west is accelerated, and the ICT procurement trend is expected to be better in the whole year. Benefiting from the promotion of digital economy and the official commencement of the East digital West computing project, the overall capital expenditure of operators is inclined to the cloud network end, and the trend is clear. The estimated capital expenditure of China Mobile's computing network in 2021 is 48 billion yuan. By item comparison, the capital expenditure of transmission network is 47.4 billion yuan (an increase of 1.7 billion yuan over the same period), and the capital expenditure of business support network is 30.7 billion yuan (an increase of 5 billion yuan over 20 years) China Telecom Corporation Limited(601728) industry digitalization expenditure was 27.9 billion yuan (an increase of 10.6 billion yuan over the same period). The park network has accelerated the upgrading and transformation from 25g to 100g, driving the upgrading and replacement of network equipment products with higher bandwidth, and boosting demand driven by new + replacement. Driven by the accelerated development of digital transformation, the demands of the whole government and enterprises for comprehensive solutions for digital transformation such as cloud network have increased.
Consolidate the ability of comprehensive digital solutions and comprehensively promote the transformation of digital economy. Focusing on core products and high-tech value-added solutions, the company further transformed into a comprehensive solution provider to continuously improve the value. 1) The market share level of network products continues to improve (in 2021, the company ranked first in the market of enterprise WLAN in China for 13 consecutive years; ranked second in the market of Ethernet switch in China; the market share of enterprise network router in China increased from 30.8% in the previous year to 31.3%). The early logic verification shows that the trend is expected to continue; 2) The company has deeply participated in the design of digital transformation schemes in smart city, medical transportation media and other industries, promoted the digital transformation of enterprises with professional ability, and the growth of new orders is good; 3) The company's own products maintain rapid growth in overseas markets and further open the growth path of globalization; 4) The company actively promoted internal cost reduction and efficiency increase, increased cost control, and continued to improve its profitability.
Risk tip: chip supply is limited; The expansion of network and comprehensive solutions is less than expected.
Investment advice: maintain the profit forecast and maintain the "buy" rating.
We maintain the profit forecast. It is estimated that the company's revenue from 2022 to 2024 will be 78.3/900100.3 billion yuan (year-on-year + 16% / 15% / 14%), and the net profit attributable to the parent company will be 2.7/34/4.2 billion yuan (year-on-year + 27% / 26% / 22%). The current share price corresponds to 16 / 13 / 10 times of PE. We are optimistic about the company's comprehensive solution ability in digital transformation services for a long time. The current valuation has a high cost performance and maintains the "buy" rating.
