Event: on April 8, 2022, the company held a strategic cooperation agreement signing ceremony with Huawei. The two sides will carry out comprehensive and in-depth cooperation in the global customs field (including customs, ports and comprehensive insurance areas / free trade zones, etc.) around product and solution development, market promotion, project development, ecological construction, etc., to jointly create a new pattern of industry development.
The resources of the two sides integrate with each other and join hands to create the industrial ecology of the smart port. As the first A-share intelligent port, the company focuses on providing the overall solution of the intelligent port inspection system and its intelligent products, with the competitive advantage driven by R & D and innovation as the core, and to create value for customers with innovative technology. it has high brand awareness and significant market position in the field of smart port. As the world's leading ICT leader, Huawei is committed to building a smart digital world of the Internet of everything. After signing a contract for cooperation in the field of intelligent transportation and the commercial market, the two fully found the complementarity of each other's resources and realized further cooperation in the direction of intelligent ports.
The core content of this strategic cooperation starts from four dimensions:
1) solution cooperation: including smart / cloud bayonet solutions, science and technology anti-epidemic solutions, AR panoramic visual solutions and other solutions
2) Market cooperation: in the domestic market, through the joint solution promotion of both sides, carry on the joint layout and expansion of the market, and create the incremental effect of cooperation between the two sides. In the international market, both sides give full play to their respective advantages and actively contribute to the construction of the wisdom port and customs of the "Belt and Road Initiative" country.
3) Project cooperation: the two sides will rely on market insight and layout, jointly tap project opportunities, share project information, and form joint project teams for key projects to tackle key projects and implement them.
4) Ecological cooperation: stack the ecological resources of both sides around the whole industry chain of ports and customs, accelerate the innovative application of both sides in the fields of smart ports and customs, enhance the core competitiveness of joint solutions, and jointly assist in the digital transformation of the industry.
Investment suggestion: in 21-23, the company is expected to achieve revenue of 11.77 billion yuan, net profit of 2.29 billion yuan, and current market value of 21X/16X corresponding to 22 / 23 PE. Taking into account the particularity of the smart port, we believe that the company has an obvious competitive advantage, and has achieved a leap to the product merchant. At the same time, considering the future incremental space of the market and the close cooperation with Huawei, the company has a broad space for growth. Maintain the recommended rating.
Risk hints: the risk of repeated epidemic; the digital transformation is not as expected; the increased demand for customized projects brings the risk of a decline in gross profit margin.