\u3000\u3000 Unisplendour Corporation Limited(000938) (000938)
Event overview: on January 17, 2022, the company issued a progress announcement on the reorganization of indirect controlling shareholders. The first intermediate people’s Court of Beijing ruled to approve the reorganization plan of substantive merger and reorganization of seven enterprises including Ziguang group, and terminate the reorganization procedures of seven enterprises including Ziguang group.
The dust of debt restructuring of the group has settled, and the business risk is about to be cleared. We look forward to the empowerment of the restructuring party. Since Ziguang group was applied for bankruptcy reorganization by creditors on July 9, 2021, we have been closely monitoring the progress of Ziguang group’s debt problem. On December 10, 2021, the consortium composed of Zhilu capital and Jianguang assets as the lead Party became the strategic investor in the merger and reorganization. In the report on the implementation of judicial reorganization of Ziguang group and the settlement of business risks is imminent, we analyzed in detail the significance of Zhilu Jianguang’s entry into Ziguang. On December 30, 2021, with the successful convening of the second debt meeting of Ziguang group, the merger and reorganization plan (Draft) of Ziguang group may be passed. In the report “the reorganization draft of Ziguang group is passed, and the business risk is expected to be cleared”, we further suggested that the group’s debt is expected to be accelerated. The approval of the restructuring plan marks the completion of the debt restructuring of the group. We believe that the operating risks of Ziguang company are about to be cleared. At the same time, we also look forward to the Industrial Synergy and empowerment brought by the restructuring party to Unisplendour Corporation Limited(000938) .
Policy setting, vigorously develop the digital economy, and the company provides the lowest digital infrastructure. Recently, the State Council issued the “14th five year plan” for the development of digital economy, and put forward quantitative indicators for the development of digital economy in the 14th five year plan. The target is to increase the added value of core industries of digital economy in the proportion of GDP from 7.8% to 10% in 20-25 years. On January 16, 2022, Qiushi reprinted the speech of the general secretary, which proposed to “vigorously promote the development of China’s digital economy”, and further stressed the need to “appropriately deploy new infrastructure construction in advance” and “comprehensively develop integrated terminals and accelerate the digital transformation of traditional infrastructure”. The company’s “core cloud network edge end” layout is fully in line with the national strategy. Its core products servers, switches and routers are indispensable underlying infrastructure for digitization. Ziguang cloud and Huasan cloud will also be widely used in enterprise digital transformation. The company is expected to fully benefit from the grand wave of vigorous development of digital economy in the 14th five year plan.
The market share of software and hardware is leading, and the recent bidding results highlight the core competitiveness. According to IDC and Jishi information, the company ranks in the forefront of ICT software and hardware market share in China, 2021q1-q3 enterprise switch (38.1%), 2021q1-q3 enterprise WLAN (29.9%), wi-fi6 (32.4%) and blade server (45.1%); 2021h1 distributed block storage (28.4%), it unified operation and maintenance software (13.3%), network management service (3.9%), support service (6.6%) and hardware deployment and support service (11.2%). Recently, the company has made continuous breakthroughs in the field of operators. According to Xinhua Sanguan micro, the company won the bid for centralized purchase of switches in China Mobile Data Center, and gained nearly three components; Won the bid for China Mobile’s 2022-2023 lot route switching centralized purchase project, and the bid winning amount ranked first among all 7 manufacturers.
Investment suggestion: Ziguang group’s debt boots are landing, and the company’s operating risks are about to be cleared. As the leader of ICT, the company’s whole series of products are expected to benefit from the vigorous development of digital economy. We expect the net profit attributable to the parent company in 2021-2023 to be RMB 2.263/27.61/3.450 billion respectively, corresponding to PE multiple of 29x / 24x / 19x, and the historical valuation center of the company is 39x. Maintain a “recommended” rating.
Risk tip: the implementation of digital economy policy is not as expected; The expansion of operators and overseas markets was less than expected.
