Zeyu intelligent (301179)
High tech enterprises focusing on power informatization business provide one-stop smart grid comprehensive services
Founded in 2011, the company provides one-stop smart grid comprehensive services including power consulting and design, system integration, engineering construction and operation and maintenance. Its main customers are State Grid Corporation of China and relevant subordinate units. From 2017 to 2020, the company’s operating income CAGR reached 28.79%, and the net profit deducted from non parent company CAGR reached 36.75%. The company was listed on the gem in December 2021. The raised investment projects include the construction project of improving the comprehensive service capacity of smart grid, the construction project of Smart Grid Technology Research Institute, the construction project of information management system and the supplementary working capital project. The total amount to be invested is 572 million yuan.
The power information industry has ushered in a high business cycle, and there is a strong demand for smart grid construction
Smart grid has become the development direction of power grid in the future, including power generation, transmission, transformation, distribution, power consumption and dispatching of power system. From 2009 to 2020, the smart investment of the State Grid totaled 384.1 billion yuan, accounting for 11.1% of the total investment of the power grid. According to the company’s prediction in the prospectus, in 2021, the enterprise income of survey and design consulting, power information system integration, power implementation and operation and maintenance will reach 75.056 billion yuan, 50.647 billion yuan and 11.423 billion yuan respectively. Based on the demand for smart grid construction, operation and renewal in the next few years, the industry is expected to maintain steady growth.
Relying on the advantages of one-stop comprehensive service, the business scope is gradually expanded to the whole country
The company provides one-stop comprehensive service mode: 1) in the field of power design consulting, Zeyu design, a wholly-owned subsidiary of the company, has class B qualification for engineering design in the power industry (power transmission and transformation) and class B qualification for engineering consulting in the power industry. 2) In the field of system integration, the company’s business has expanded from network integration to application integration, and has successively developed Zeyu Smart Substation analysis system software, Smart Substation three-dimensional inspection system and other products. 3) In the field of construction and operation and maintenance, the company has the ability to undertake multiple large-scale construction projects at the same time. The company has successively carried out business in many regions outside Jiangsu Province, and has reserved some core customers in Anhui, Beijing and other places. With the implementation of raised investment projects, the market development ability outside Jiangsu Province is expected to be further improved.
Profit forecast and investment suggestions
Entering the “14th five year plan”, the construction of smart grid is expected to accelerate, and the company has ushered in good development opportunities. It is predicted that the operating revenue of the company from 2021 to 2023 will be 705, 924 and 1200 million yuan, the net profit attributable to the parent company will be 186, 244 and 317 million yuan, the EPS will be 141, 185 and 2.40 yuan / share, and the corresponding PE will be 39.50, 30.10 and 23.21 times. Since listing, the company’s PE has mainly operated in the range of 39-49 times. Considering that the company has relatively scarce one-stop comprehensive service capacity in the industry, and the operating revenue and net profit are expected to maintain a high compound growth rate in the next three years, the company is given a target PE of 40 times in 2022, and the corresponding target price is 74.00 yuan. Recommend for the first time and give a “buy” rating.
Risk tips
Covid-19 recurrent pneumonia; The promotion of electric power informatization is less than expected; Single customer dependency risk; Inventory impairment risk; Intensified market competition; The business expansion outside Jiangsu Province was less than expected.
