\u3000\u30 China Baoan Group Co.Ltd(000009) 38 Unisplendour Corporation Limited(000938) )
Event description:
On April 28, 2022, the company released the first quarter report of 2022, realizing an operating revenue of 15.342 billion yuan, a year-on-year increase of 13.58%; The net profit attributable to the parent company was 372 million yuan, a year-on-year increase of 35.36%; The non net profit attributable to the parent company was 363 million yuan, a year-on-year increase of 162.54%.
Comment event:
The company's performance growth exceeded our previous expectations, and the non net profit attributable to the parent company in the first quarter increased significantly year-on-year.
The company's gross profit margin continued to rise. In 2022, Q1 gross profit margin was 21.93%, up 3.58 percentage points year-on-year and 2.95 percentage points month on month.
The company continued to increase R & D investment, with Q1 investment of 1.145 billion yuan in 2022, a year-on-year increase of 33.6%; The proportion of R & D expenses was 7.46%, with a year-on-year increase of 1.12 percentage points; The company increased the strategic investment in "cloud intelligence native" technology and strengthened the deep integration of digital technology and industry application scenarios.
The three fees of the company are well controlled, basically the same as that of the same period last year; At the same time, according to the needs of business development, the company increased strategic stock. The inventory in Q1 was 20.96 billion yuan, an increase of 13.8% month on month compared with the end of last year.
The company optimized China's sales system and coordinated development of industrial market and commercial market; Steady development of overseas markets, product sales revenue and the number of overseas partners continued to increase.
The revenue and profit of Xinhua III, a holding subsidiary, increased significantly year-on-year, and ziguangyun will make all-round efforts in the future.
In 2022, Q1 Xinhua III achieved an operating revenue of 10.472 billion yuan, a year-on-year increase of 27.78%; The net profit was 659 million yuan, a year-on-year increase of 33.06%, and continued to power the operators and government enterprise market.
Xinhua III continued to maintain product competitiveness, launched the industry's first 400g Park core switch h3cs10500x-g, and launched the world's first new enterprise smart native wi-fi7ap.
Ziguang cloud continues to build a core cloud platform and strengthen the construction of cloud operation and service capabilities. It has built 43 nodes nationwide, covering 22 provinces, and won many smart city projects.
The reorganization of the major shareholder Ziguang group is basically implemented, which is conducive to the future business development of the company. At present, seven enterprises including Ziguang group have entered the implementation stage of restructuring. We believe that the debt problem of Ziguang group is expected to be solved in the future, which is conducive to the stable development of the company.
Investment suggestions:
We estimate that the operating revenue of the company from 2022 to 2024 will be 79.42 billion yuan, 92.86 billion yuan and 107.91 billion yuan respectively, and the net profit attributable to the parent company will be 2.62 billion yuan, 3.44 billion yuan and 4.09 billion yuan, corresponding to PE of 17.21x, 13.09x and 11.02x. Maintain the "buy" rating.
Risk tips:
The epidemic continues to spread; The growth of operators' business and overseas business is less than expected; Industry competition intensifies.
