I. Incident Overview
On November 17, China Telecom and Tsinghua University signed an agreement to deepen strategic cooperation in Beijing, held an equity handover ceremony for Beijing Chenan Technology Co., Ltd., and officially launched the emergency cloud dispatch platform.
II. Analysis and Judgment
The equity transfer was officially completed. After Telecom Investment became the controlling shareholder of the company, Telecom Investment directly held 18.68% of the company's shares, while Tsinghua Holdings, its co-actor, held 8.16% of the company's shares. Therefore, Telecom Investment controlled 26.84% of the company's shares in total. The controlling shareholder of the company changed from Tsingcontrol Venture Capital to Telecom Investment, and the actual controller was changed from Tsinghua University to the State-owned Assets Supervision and Administration Committee of the State Council.
After Telecom takes a stake, it is expected to enhance the company's strength in all aspects. The synergistic effect is expected to bring many improvements to the company after China Telecom enters the company. One is the expansion of sales channels. China Telecom is expected to bring customer resources including government customers, industry, fire protection, safety, etc., to the company's core business expansion; second, China Telecom's own strong integration and other capabilities are expected to help the company improve its ability to undertake large-scale projects. Meanwhile, Tsinghua University is still an important shareholder of the company, and technical and other cooperation will continue.
Leading emergency management enterprises have obvious advantages and are optimistic about long-term development
At the same time as the strategic cooperation agreement was signed, the company officially released an emergency cloud dispatch platform, which is optimistic about the company's long-term development prospects.
The emergency cloud dispatch platform integrates the company's business capabilities with China Telecom's various means of communication, and can achieve cross-platform and cross-region communication scheduling capabilities. The policy promotes the development of the emergency management industry. Demand for urban safety construction is strong, and there is broad room for future growth. The company is in a leading position in the field of emergency management. Provincial platforms have received new orders in various provinces such as Beijing and Hainan; local, district and county emergency platforms have signed new projects in Chengdu, Yantai, Huai'an and other regions. The company said that business development momentum has been good since the second half of the year, new orders have continued to be placed in various sectors, and it is capable of maintaining steady development.
III. Investment Suggestions
As a leading emergency platform enterprise, the company has broad development prospects. After Telecom officially takes a stake, it is of great help to expand the company's core business, and long-term synergies can be expected. We expect the company's EPS to be 0.77/1.1/1.51 yuan in 20-22, the corresponding PE is 52/36/27 times the current price, and the average PE of Wind Information Security Sector Company 20 is 67 times. The company has a certain valuation advantage. We maintain the “recommended” rating
4. Risk warning:
The number of orders fell short of expectations, and the progress of market expansion fell short of expectations.
