\u3000\u30 China Baoan Group Co.Ltd(000009) 77 Inspur Electronic Information Industry Co.Ltd(000977) )
Event overview
1) on May 17, the CPPCC National Committee held a special consultation meeting on "promoting the sustainable and healthy development of digital economy" in Beijing, which proposed "promoting the deep integration of digital economy and real economy" and "promoting the new generation of information technology to enable equipment, enterprises and industries". We believe that one of the main focuses of digital economy is the construction of computing infrastructure, and the server industry is expected to continue to benefit.
2) recently, Inspur Electronic Information Industry Co.Ltd(000977) successively released the annual report of 2021 and the report of the first quarter of 2022, and achieved an annual operating revenue of 67.048 billion yuan, an increase of 6.36% year-on-year; The net profit attributable to the parent company was 2.003 billion yuan, a year-on-year increase of 36.57%; The net profit deducted from non parent company was 1.797 billion yuan, with a year-on-year increase of 27.56%. In the first quarter of 2022, the company achieved 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 deducted from non parent company was 261 million yuan, with a year-on-year increase of 32.90%.
Consolidate the industrial foundation and continuously improve the industry share
In 2021, Inspur continued to promote the smart computing strategy and increased the investment in smart computing R & D represented by cloud computing, big data and artificial intelligence. The R & D expenses increased by 10.85% year-on-year, and the number of R & D personnel was 3002, accounting for 40.45%. According to the company's annual report, the company has led or participated in all national standards of servers and is the only server supplier to join the three major open computing organizations in the world at the same time. 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 Gartner's latest data, 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 storage market. Inspur Electronic Information Industry Co.Ltd(000977) has been selected as the challenger of Gartner's main storage Magic Quadrant for two consecutive years. According to Q4 data of synergy in 2021, Inspur Electronic Information Industry Co.Ltd(000977) server ranked first in the global public cloud infrastructure computing market share for 11 consecutive quarters.
The infrastructure construction of computing power is accelerated, and the demand of the industry continues to release
Under the overall layout of the state, the trend of computing power infrastructure represented by "counting from the east to the west" is accelerating, and the investment computing power has a long-term multiplier effect on economic growth. According to IDC data, in 2021, the sales volume of China's server market increased by 12.7% year-on-year to 163.2 billion yuan, and the shipment volume increased by 8.4% year-on-year to 3.911 million units, leading the world. The server carries all kinds of information systems, ranging from bank deposit and withdrawal, telecom billing, securities trading and power dispatching to people's online shopping, mobile payment, mobile chat and brushing the circle of friends. They are inseparable from the background information system and the support of the server. In recent years, the communication industry and the financial industry are introducing high value products. The demand for digitization is increasing, and the demand for server products is also growing rapidly. In addition, the proportion of enterprise market has also increased. Considering the tight market supply, material price fluctuation and other market uncertainties since the second half of 2021, the company has actively prepared goods and actively expanded inventory to ensure customer supply and delivery.
In the first quarter, the performance improved significantly and the downstream recovered significantly
In the first quarter of this year, the company's revenue and profit increased significantly, mainly due to the increase of customer demand and the growth of server sales. In addition, the sharp improvement of business in the first quarter was also affected by comprehensive factors such as exchange rate, provision of two preparations and delivery rhythm. From the perspective of customer structure, the increment mainly comes from the Internet industry and communication industry. Among them, the demand of the Internet industry will gradually change from the previous high-speed growth to high-quality growth, but there will be continuous demand for old and new and forward-looking investment. We expect that the annual growth rate will not be as radical as that in the first quarter, but compared with the weak industry demand and the cyclical decline of servers last year, the certainty of the recovery of downstream demand this year is high.
Investment advice
Inspur Electronic Information Industry Co.Ltd(000977) is a leader in the server field. In the short term, it may benefit from the new server growth cycle and the recovery of downstream demand, and is expected to improve the investment value in the accelerated trend of computing infrastructure in the future. We expect the company to achieve operating revenue of 76.89/910.2/102.64 billion yuan and net profit attributable to the parent company of 2.529/31.78/3.999 billion yuan respectively from 2022 to 2024. Maintain the investment rating of Buy-A and give a six-month target price of 34.80 yuan, equivalent to 20 times the dynamic P / E ratio in 2022.
Risk warning: the construction of data center is not as expected; The demand of Internet and other industries is lower than expected.
