Focus on building a comprehensive IT infrastructure service provider. The company is a leading comprehensive provider of IT infrastructure “services+products” in China. Since its establishment, the company has always been committed to providing customers with full-process services for the IT infrastructure layer, from architecture construction, operation and maintenance to automated and intelligent operation and maintenance, while also providing customers with operational data analysis services based on the IT application architecture layer. (1) IT operation and maintenance services: focusing on the IT infrastructure layer, mainly targeting large state-owned enterprises in the financial, telecommunications, transportation and other industries and data centers of government departments to provide services that guarantee the overall safe, stable and efficient operation of their IT infrastructure; (2) Original software and hardware products: mainly sell various software and hardware products from domestic and foreign original manufacturers to customer IT data centers; (3) Independent intelligent operation and maintenance products: specifically include IT service management platforms, operation and maintenance big data analysis platforms, centralized monitoring platforms, automated operation and maintenance platforms, configuration management platforms, etc. ; (4) Operational data analysis services: The company provides customers with operational data analysis services based on enterprise network data such as customers, products, transactions, etc., to help customers achieve digital and intelligent transformation.
The IT services industry is growing rapidly, with extensive downstream coverage. Although China's IT service industry started late, it is developing rapidly. With the rapid advancement of informatization construction and the continuous advancement of the deep integration of informatization and industrialization, China's IT service industry has ushered in good opportunities for development. In 2014-2019, China's IT service market grew from 411.66 billion yuan to 768.13 billion yuan. The CAGR was 13.29%, and the CAGR is expected to reach 12.7% in 20-23. From a downstream perspective, IT service industry customers are mainly large and medium-sized enterprises, institutions and government agencies in the financial, telecommunications, transportation and other industries. Looking at the pattern, there are currently many enterprises participating in industry competition, which mainly include two categories: original manufacturers and third-party operation and maintenance service providers. With the expansion of the scale and complexity of IT infrastructure, customer demand for comprehensive problem location capabilities between architectures and products has risen rapidly, and the market recognition, customer trust and market share of third-party operation and maintenance service providers have gradually increased. Furthermore, under the trend of localization and security autonomy and control of the information industry, the market competitiveness of third-party O&M service providers will be further strengthened.
Technological and innovative capabilities have built a moat, and the business layout continues to expand. Currently, the company has three major core technologies, which have all been widely and deeply applied in related products or services, and have made positive contributions to the rapid growth of the company's business performance. The company is deeply involved in IT architecture construction and operation and maintenance services for the head office level data centers of large state-owned commercial banks such as Bank of China Head Office, Agricultural Bank Head Office, China Construction Bank Head Office, and Bank of Communications. Among them, the financial industry is the industry that accounts for the highest share of the company's revenue.
In 2019-2021, the company's revenue from the financial industry accounted for 76.55%, 78.53%, and 83.77% respectively. In addition to the financial industry, the company also accumulated rich customer resources in telecommunications, transportation, government and other fields to achieve common development in multiple industries.
The company is expected to use its experience in the financial industry to rapidly expand into other fields, achieve steady growth, and give a target price of about 57 yuan. We expect the company's revenue for 2022-2024 to be 1,483 million yuan, 1,777 million yuan, 2,046 million yuan, corresponding growth rates of 25.4%, 19.8%, 15.2%; net profit of the mother is 152 million yuan, 181 million yuan and 208 million yuan, with corresponding growth rates of 23.8%, 19.3% and 15.1% respectively; corresponding EPS (dilution) is 2.27 yuan, 2.71 yuan and 3.12 yuan respectively. In terms of valuation, with reference to comparable companies, we gave 25xPE in '22. The target price was about 57 yuan, and the company's issue price was 46.06 yuan/share.
Risk warning: market competition risk; market expansion risk; market product iteration and technological innovation risk.
