\u3000\u30 Jinzai Food Group Co.Ltd(003000) 36 Beijing Supermap Software Co.Ltd(300036) )
On April 29, 2022, the company announced that Chengdu Chaotu Investment Co., Ltd., a wholly-owned subsidiary of the company, planned to subscribe for 3.5 million shares issued by Beijing Shanwei Technology Co., Ltd. in cash, with a subscription price of 11.00 yuan / share and a total subscription amount of 38.5 million yuan. After the issuance, Chaotu investment will hold 3.5 million shares of Shanwei technology, accounting for about 12.96% of the total shares of Shanwei technology.
Shanwei technology's business covers collection, data processing and other links, with a high degree of productization. 1) China's leading GIS enterprise covers multiple industrial chain links. Shanwei technology is a specialized and new "little giant" enterprise in Beijing. It has long been committed to the research and development of domestic surveying and mapping geographic information software products. On the basis of independent core technology, the company has developed more than 60 kinds of software products in three categories: GIS front-end data acquisition, GIS data processing and GIS management, providing all-round services from data acquisition, data processing, data supervision, cross platform data conversion, database construction and update management, to GIS application and intelligent information management construction, forming a comprehensive geographic information solution with database as the core.
2) steady improvement of performance and high degree of productization. The performance of Shanwei technology has improved steadily in recent years, with a compound growth rate of 17% in revenue and 11% in net profit attributable to the parent company from 2016 to 2021. Meanwhile, Shanwei technology has a high degree of productization. In 2021, the overall gross profit margin is 62%, the net profit margin is 20%, and the gross profit margin of software business is nearly 90%.
It is expected to further benefit from policy opportunities by complementing the capacity of upstream links. From the perspective of industrial chain links, Shanwei technology business involves the upstream of geographic information industrial chain links, that is, data collection links. It is expected to further consolidate the role of GIS in supporting the upstream and downstream industries.
Taking the real scene 3D policy as an example, according to the notice on comprehensively promoting the construction of real scene 3D in China, the construction of real scene 3D first involves data acquisition and management, such as integrating the basic geographic entity data of provincial administrative regions, obtaining tilt photography images with a resolution better than 5cm, and then building a unified 3D database and management system at all levels. Therefore, the company's extension to the upstream is conducive to obtaining more increment in the policy construction and more actively grasping the early opportunities in the policy construction (in the construction of geographic information, the construction of data acquisition is often the first to start).
Investment suggestion: the company has a leading position in the field of GIS in China. Real 3D, domestic substitution and other policies began to be implemented one after another, which helped the company grow as an opportunity. At the same time, the long-term potential of emerging businesses such as metauniverse and C-end SaaS business is expected. The participation in Shanwei technology extends to the upstream of the industrial chain and continuously expands its own capabilities, which is expected to benefit from real-world 3D and other relevant policies. It is estimated that the net profit attributable to the parent company from 2022 to 2024 will be 365 / 453 / 554 million yuan, and the corresponding PE will be 22x, 18x and 15x respectively, maintaining the "recommended" rating.
Risk tip: the risk of intensified industry competition, uncertainty in the development of new fields such as metauniverse, and some uncertainty in the progress of policy promotion.
