Event: Zhuoyi information released semi-annual report, 20H1 achieved revenue of 75.4 million yuan (+ 1.2% compared with the same period last year), return to the mother of net profit / deduction of non-return net profit of 2529,17.65 million (+ 191% soybean 21%). Among them, 20Q2 realized income of 46.75 million (- 10%) and net profit of 16.07 million (+ 582%).
Firmware business development exceeded expectations, optimistic about the company's card position advantage. Nanjing Baiao (firmware business), a wholly owned subsidiary of 20H1, achieved revenue of 45.06 million, + 106% year-on-year; Nanjing Baiao realized net profit of 20.4 million, + 190% year-on-year, and net interest rate reached 45%, an increase of 13 percentage points over the same period last year. We expect both NRE and licence revenues in 20H1's firmware business to increase significantly compared with the same period last year, and the company's high personnel growth in 2019 is beginning to show results. As one of the four Intel authorized BIOS service manufacturers in the world, the company has become the core member of Huawei "Kunpeng Alliance", Haiguang "photosynthetic Organization", Feiteng "Ecological Alliance" and Lan Qi "Zijin Alliance". It has undertaken the main localization of CPU BIOS and BMC firmware development and industrialization work. We are optimistic about the company's advantages in the X86 market and domestic market in the firmware field, and the revenue of NRE and licence is expected to continue to increase.
The epidemic affects the growth rate of cloud services and does not affect the long-term investment value of the company. 20H1's cloud service revenue was 28.84 million yuan,-43% compared with the same period last year, mainly due to the delay in bidding for new projects in cloud service business due to the epidemic of COVID-19, as well as the delay in delivery and acceptance of existing projects, thus affecting revenue recognition. We believe that the growth rate of H2 revenue in the company's cloud services business is expected to pick up, and the proportion of cloud services revenue will gradually decline in the future, and the epidemic factors will not affect the overall investment value of the company.
Target price 112.20 yuan, maintain the "buy" rating. It is estimated that the company's revenue from 2020 to 2022 will be 3000,000,000, respectively, and the net profit of homing will be 0.75Universe 1.62Plus 2.14 million, respectively, and the EPS will be 1.87Compare 2.46 yuan, respectively. The company will be given a 2021 60x target PUnip E, corresponding to the target price of 112.20 yuan, and maintaining the "Buy" rating.
Risk tips: market share expansion is not as expected, downstream servers, PC shipments are not as expected, and so on.