\u3000\u3 China Vanke Co.Ltd(000002) 063 Ygsoft Inc(002063) )
Key investment points
Event: the company issued the annual report of 2021 and the report of the first quarter of 2022. In 2021, the revenue reached 1.92 billion yuan, a year-on-year increase of 13.2%; The net profit attributable to the parent company was 310 million yuan, a year-on-year increase of 16.2%. In 2022, Q1 achieved an operating revenue of 370 million yuan, a year-on-year increase of 24.8%; The net profit attributable to the parent company was 7.406 million yuan, a year-on-year increase of 2.8%.
The group’s management business grew steadily, deepening vertically and broadening horizontally. In 021, the group management business of the company achieved a revenue of 1.2 billion yuan, with a year-on-year increase of 7.2%. In recent five years, the CAGR was 9.0%. The cornerstone business advantage was stable. The company continued to deepen its collaboration with the State Grid and participated in the construction of key projects and innovation projects of many enterprises. Among them, the core system DAP has achieved full unit and full business coverage in the State Grid e-commerce, becoming a benchmark for localization. At the same time, the company has made positive progress in the related work of the digital south network. The system covers all financial business fields. Based on the comprehensive localization environment and adopting cloud and micro service technology, the pilot operation has been successfully completed and is being popularized and applied throughout the network. In addition, the company has gradually extended its core competence to the non electricity market, helping the digital construction of manufacturing, medical industry, rail transit, aviation and other group enterprises.
The market-oriented reform of electricity has accelerated, and the smart energy business has fully benefited. In recent years, the company’s smart energy business has expanded rapidly, with a revenue of 250 million yuan in 2021, a year-on-year increase of 56.7%, and the CAGR reached 54.7% in 20172021. The company has made an in-depth layout for the four major market players of power generation, transmission, power sales and power consumption, cooperated with the State Grid e-commerce to participate in the construction of “online state grid Market-oriented Power Sales E assistant”, actively implemented the construction requirements of the national unified power market and built the power market operation service system; At the same time, it has focused on multiple emerging business formats such as “comprehensive energy services, virtual power plants, power market transactions, energy operation and maintenance, and dual carbon business”, formed packaged products and solutions to serve all social subjects, enabled the dual transformation of energy and digitization of all social subjects, and has completed the implementation of multiple cases. Under the background of “double carbon”, the demand for new power system reform is high, and the company is expected to give full play to the synergy with State Grid e-commerce to accelerate the growth of smart energy business.
Continue to expand emerging technologies and create new drivers of growth. In line with the development needs of the “double carbon” goal, the company has increased its reserves of emerging technologies year by year and has begun to enter the dividend cashing period. The revenue growth rates of artificial intelligence, data services and blockchain business are 29.1%, 45.8% and 26.4% respectively, working together to build a new growth momentum of the company. 1) In terms of artificial intelligence, the company has launched a number of new digital products around the direction of intelligent hardware, RPA platform and application and AI application, combined with the actual business needs and application scenarios of customers. OCR application platform has been successfully applied in many core customer units. 2) In terms of data services, realinsight, a digital innovation platform, has completed the full stack adaptation of Huawei’s “Kunpeng ecology”, and continuously deepened the capabilities of digital twinning, data processing and multidimensional analysis to help enterprises open up the whole chain of “data information knowledge wisdom”. 3) In terms of blockchain business, the company has deeply integrated blockchain technology with various application scenarios, and iteratively launched a variety of products such as enterprise electronic document service platform and source network load storage integrated application.
Profit forecast and investment suggestions. It is estimated that the compound growth rate of the company’s net profit attributable to the parent company will reach 21.8% from 2022 to 2024. Driven by the goal of “double carbon”, the informatization construction of power industry is expected to usher in a new round of investment cycle; The company is deeply engaged in the energy and power industry, relying on the State Grid, highlighting the synergy of e-commerce, the competitive advantage of the group’s management system business, and smart energy and other businesses are expected to continue to benefit from the power market-oriented reform and accelerate development. Therefore, it is given a valuation of 25 times in 2022, corresponding to the target price of 7.25 yuan. It is given a “buy” rating for the first time.
Risk tip: the promotion of power market-oriented reform policy is less than expected; The investment amount of power grid is less than expected; The research and development of core technology is less than expected; The synergy with State Grid e-commerce did not meet expectations, etc.
