The company released its January-February results, with a net profit growth rate of more than 60%. On March 15, 2022, the company issued a notice on the operation of January-February 2022. The total operating income in the first two months of 2022 was about 200 million yuan, an increase of more than 40% over the same period last year. The net profit returned to the home was about 30 million yuan, an increase of more than 60% over the same period last year. The amount of newly signed orders from January to February was about 230 million yuan, an increase of more than 60% over the same period last year, with a growth rate of more than 150% in terms of industrial digitization, digital governance, and the application of data factor resources.
The general trend of the development of digital economy, "one network management", data management is an important task of digital economy construction. The main contents are as follows: 1) the senior management attaches great importance to the development of digital economy, and the long-term development of domestic digitization is expected under the catalysis of policies. From the Digital economy Development Plan of the 14th five-year Plan to the 2022 Government work report, policies have given important guidance to the development of digitalization. digital construction sinking, key industry construction, core technology research and development, network security and other contents have become the focus of construction.
2) "one network management" and "grid management" are expected to become the focus of digital economy construction, and the company has been ploughing deeply in the industry for many years and has a leading position. 2022 the governance section of the government work report focuses on digitization and proposes to "promote the sharing of digital government and government affairs". We believe that strengthening the governance ability of the government is an important part of the construction of digital economy, while "one network management" and "grid management" are important means to strengthen the governance ability of the government.
In the field of "one network management", the company has carried out "one network management" project cooperation in dozens of prefectures and cities to create a new benchmark for urban operation "one network management". In February 2022, the company won the bid for the intelligent platform project for urban and rural integration in Changfeng County, Anhui Province. the scale of the project reached 48.237 million yuan. In the field of "grid management", the company has covered more than 200 prefecture-level cities and more than 1000 county-level cities and counties, and set up urban operation data service branches in more than 100 cities.
3) with the development of "data governance", the long-term prospect of L4 intelligent grid vehicle is promising. The company has launched a L4 intelligent grid car with "self-driving + AIoT" technology as the core, and the application areas of data collection include urban infrastructure, traffic management, law enforcement management and other fields. The grid car loads a variety of data acquisition equipment, collects data in multiple scenes, calculates the relevant data through edge computing capabilities, and transmits the results to the command center, which has potential to improve the efficiency of urban data governance. The promotion of L4 intelligent grid car is also expected to bring about a change in the company's business model, with the potential for SaaS transformation, and is also expected to contribute to the continuous optimization of labor costs.
Investment advice: under the general trend of digital economy construction, the company, as a leading enterprise in a smart city, is expected to benefit from the promotion of "one-network management" and "grid management"; at the same time, the company has launched "L4 self-driving + operation". Enhance the ability of urban data governance, and gradually promote the transformation of their business model. It is estimated that the EPS of the company from 2021 to 2023 is 0.40, 0.51 and 0.65 yuan, corresponding to the PE of 53x, 41x and 32x. Considering the company's market position in the smart city field, iFLYTEK and Wanda Information are selected as comparable companies with an average PE of 42x in 2022. Taking into account the company's advantages in areas such as "one network management" and its long-term prospects in the field of L4 smart grid vehicles, maintain the "recommended" rating.
Risk hints: the promotion of new technology is not as expected, the impact of the epidemic is uncertain, and competition in the industry intensifies.
