\u3000\u30 China Baoan Group Co.Ltd(000009) 77 Inspur Electronic Information Industry Co.Ltd(000977) )
Event: the company released its 2021 annual report. In 2021, it realized an operating revenue of 67.048 billion yuan, a year-on-year increase of 6.36%; The net profit attributable to the parent company was 2.002 billion yuan, a year-on-year increase of 36.57%; The net profit attributable to the parent company after non deduction was 1.797 billion yuan, a year-on-year increase of 27.56%.
The company released the first quarterly report of 2022, realizing an operating revenue of 17.277 billion yuan, a year-on-year increase of 48.11%; The net profit attributable to the parent company was 334 million yuan, a year-on-year increase of 38.33%; The net profit attributable to the parent company after deduction was 261 million yuan, a year-on-year increase of 32.90%.
The net interest rate continued to grow. In 2021, the gross profit margin of the company was 11.44%, basically the same as that of the same period last year. The company’s sales expense ratio was 2.18%, down 0.78 percentage points compared with the same period last year; The management fee rate was 1.08%, down 0.22 percentage points compared with the same period last year; The R & D expense rate was 4.36%, an increase of 0.18 percentage points compared with the same period last year.
Ranked high in many fields. According to the latest data of IDC, Inspur Electronic Information Industry Co.Ltd(000977) ‘s server products ranked second in the world in 2021 and continued to lead the Chinese market with a market share of 30% +; In the first half of 2021, the market share of Inspur Electronic Information Industry Co.Ltd(000977) the AI server products ranked first in the world, with a market share of more than 20%. According to the latest data from Gartner, Inspur storage ranked among the top five in the world in terms of sales volume in 2021 and ranked second in the world’s second-largest storage market.
In the era of digital economy, the company’s industry is optimistic for a long time. According to IDC’s report “global server market tracking report in 2021”, the global server market shipments and sales in 2021 were 13.539 million units and US $99.22 billion respectively, with a year-on-year increase of 6.9% and 6.4%. Sales in the Chinese market reached US $25.09 billion, a year-on-year increase of 12.7%. Inspur server continues to rank first in the Chinese market with a market share of 31.4%. In the era of digital economy, the demand for computing power will continue to rise, and the company’s industry will fully benefit.
Investment suggestion: the company’s revenue maintains a high-speed growth trend, and the long-term positive development trend of the server industry remains unchanged. We expect the company’s EPS from 2022 to 2024 to be 1.91 yuan, 2.64 yuan and 3.21 yuan respectively, maintaining the “buy” rating.
Risk warning: downstream expenditure is less than expected; Industry competition intensifies.
