Summary of the report:
1. The country promotes the application of cloud computing and the Internet of things, and the industry penetration continues to rise.
According to IDC, in the future, the growth rate of PaaS in China's cloud market will exceed 55.7%, and the enterprise-level SaaS will exceed 35.7%. By June 2018, the number of end users of the Internet of things will reach 465 million, and it is expected that the expenditure on the platform of the Internet of things in China will rank first in the world in 2021. In recent years, the country has issued a large number of policy documents related to cloud computing and the Internet of things. At present, the application rate of enterprise cloud services in China is low, but the demand of Internet enterprises maintains rapid growth, traditional enterprises speed up the status quo of cloud services, and companies have more room for government and enterprise cloud services.
2, continue to cultivate enterprise services, new business areas are expected to lead the company to meet the performance inflection point.
China's digital economy continues to develop, with a scale of 31.3 trillion yuan in 2018, an increase of 20.9%, and a gradual increase in its contribution to GDP. In 2019, the scale of the project discussed by the company exceeded 10 billion, and its business was mainly focused on enterprise services; the penetration rate of China's car Internet market reached 34%, and the company adjusted the car Internet market in 2018, and increased the expansion of government and financial business. The inflection point of later performance can be expected.
3. The accelerated growth of the biomedical sector is expected to become the driver of sustainable performance growth in the future.
According to Zhiyan, the medical big data industry is expected to maintain a growth rate of more than 60% and reach a market size of 48.28 billion yuan by 2024. The company provides customers with overall solutions in the aspects of automatic analysis and interpretation of genetic data, laboratory information management (LIMS), etc. The subsequent merger and acquisition of Jidao Company will inject new profit points into the biomedical industry, and the company has a strategic tilt towards the biomedical sector.
Company profit Forecast: the company is a professional information technology company with layout in cloud computing, Internet of things and data services, biomedicine and so on. We estimate that the return net profit of the company from 2019 to 2021 is 1.26 million RMB 142pm, corresponding to EPS 0.19 plus 0.22 plus 0.31 yuan respectively. The current stock price corresponds to 2019-2021 PE value of 30-26-18 respectively. Give a "recommended" rating.
Risk hint: the strategic adjustment is not as expected; the customer expansion is not as expected.