Core technology drives growth and opens up a new track for a global scientific and intelligent city. The company has more than 10 years of smart city technology and business accumulation, forming a DI (digital infrastructure) and DA (data application) under the two major directions, to DI-Edge (smart edge), DI-Cloud (digital cloud base), DA data application (digital government, digital economy) as the backbone of the three major products and solution systems. The company continues to increase the proportion of independent products in traditional smart city projects, and develops the global global science smart city (DI+DA) new track business based on the strong comprehensive competitiveness of edge / cloud / use trinity, which provides global government-level SaaS services and digital economy platform construction and operation services, which is the weather vane of the future smart city. The company has passed the global software capability maturity CMMI5 top certification and has been included in the artificial intelligence AI50 sample stock index by Shenzhen Stock Exchange and Shenzhen Securities Information Co., Ltd.
At the same time, we have carried out technology and product mutual certification with Huawei, Longxin, Tongxin and other Xinchuang alliance enterprises, and established an intelligent city industry chain system of "independent control and domestic substitution".
Revenue is growing steadily and there are plenty of orders on hand. In the three years from 2016 to 2019, the compound growth rate of revenue was 18.15%, and the compound growth rate of return net profit was 22.25%. In the first three quarters of 2020, revenue reached 1.955 billion yuan, down 4.89% from the same period last year. The net profit returned to the mother was 266 million yuan, an increase of 60.02% over the same period last year, deducting 252 million yuan from non-net profit, an increase of 64.14% over the same period last year. At the present stage, the company participates in the China Unicom mixed reform project in Yunnan and Guangxi provinces. at present, the Yunnan Unicom mixed reform project has been implemented in stages and has begun to refund in accordance with the schedule stipulated in the contract. At present, the social cooperative operation of Guigang and Wuzhou in the four cities of Guangxi Unicom is starting, and other regions will advance steadily in the follow-up.
Set additional yards for new tracks and new technologies. The company issued a fixed increase plan in February 2020, which intends to raise no more than 2 billion yuan. Invested in "Research and Development and industrialization Project of Autonomous controllable Magneto-Optoelectronic Storage Technology for Cloud Computing and big data (700 million yuan)", "Research and Development and industrialization Project of self-controllable Cluster embedded artificial Intelligence Image Analysis system (250 million yuan)", "Hezhang County Wisdom Hezhang PPP Construction Project (600 million yuan)", "Supplementary working Capital (450 million yuan)" The pricing base date is the first day of the non-public offering, and the offering price is not less than 80% of the average stock trading price for the 20 trading days before the pricing benchmark. The company's additional issuance was approved on July 15, 2020.
Profit forecast and investment advice. In the field of "Wisdom China", the company is one of the few smart Chinese comprehensive solution providers and operational service providers with experience in the construction and operation of single billion-yuan projects. We predict that the operating income of the company from 2020 to 2022 will be 2.771 million yuan, respectively, and the net profit of returning to the mother will be 4.04 million yuan, 5.21 billion yuan, and the corresponding EPS is 0.58 million yuan, 0.750.95 yuan, respectively.
At present, the valuation of the company is at a low level in the computer sector, giving the dynamic PE25-30 times in 2020, with a reasonable value range of 14.5-17.4 yuan, maintaining a "better than the market" rating.
Risk tips: industry information demand slows down, accounts receivable bad debts and so on.