Key points:
The company has been deeply involved in the telecom industry and public security industry for more than 20 years, and has gradually formed a technology platform and product system based on operators' IT support business and supported by technologies such as big data and artificial intelligence led by the industrial cloud BOSSS+. It is expected that it will continue to benefit from opportunities such as the 5G+ industry and the cloud transformation of government and enterprises in the future. Referring to the valuation situation of comparable companies, the average PE of the comparable company in 2019 was 27 times. Given the company's advantageous layout in the fields of telecommunications, finance, public security, etc., the company was given 25 times PE in 2019, with a corresponding target price of 11.11 yuan, and a “buy” rating.
The technology market is two-wheel drive, and the three major industries are going hand in hand.
The company is deeply involved in telecommunications, public security and other industries, and continues to invest in R&D to drive the development of the company's technology. It has formed an industrial layout based on operators' IT support business and led by the industrial cloud BOSSS+. Furthermore, the company quickly entered IT distribution and finance fields through mergers and acquisitions, and synergies are gradually showing, effectively enhancing the company's overall competitiveness.
The core strength was recognized by the giants, and the expansion of the industry received an acceleration engine.
The strong R&D capabilities that the company has developed over the years have been recognized by giants such as Ali and Huawei. In 2019, Tianyuan Deco became one of the three partners of Alibaba MSF (Total Integrated Framework Cooperative Supplier), which is expected to use the giant's brand and market power to accelerate the rapid implementation of the company's big data and cloud computing industry solutions.
Intensive R&D investment to seize the 5G+ industry and enterprise cloud transformation opportunities.
In recent years, the company has always insisted on high-intensity research and development, and has initially formed four basic technology platforms of “Dishu”, “Dizhi”, “Diyun”, and “Dian”, which will support the company's long-term development in the future. We believe that the development of 5G construction will, on the one hand, inject new impetus into the growth of the company's traditional telecom industry. At the same time, more diverse and more complex network architectures will also raise the industry threshold, and the company will concentrate its benefits as a leader. Furthermore, in terms of public safety, with the continuous advancement of police cloud construction, the company has been working hard for many years to form a certain demonstration effect. At the same time, software modularization has brought about an increase in reuse, which will continue to consolidate the company's competitiveness in the industry and raise the product margin level. Finally, in the financial sector, the company's internal and external expansion has accelerated, synergies are remarkable, and credit risk control operations have become a new growth point.
Risk warning
5G construction fell short of expectations. The trade war triggered macroeconomic risks and the impact of IT distribution businesses such as Huawei. The construction of a police cloud and government central enterprise procurement fell short of expectations, and systemic risks.