From middle-level PaaS to upper-level SaaS, SinoCom has the core technology of its products: since 2019, the company's R & D investment has continued to increase, from 382 million yuan to 599 million yuan, and the proportion of R & D investment in total revenue has also increased significantly, from 4.9% in 2019 to 7.9% in 2022. From 2019 to 2022, the relative proportion of R & D personnel engaged in low-level technology in the total staff maintained a steady growth trend, and has been stable at about 60% in the past three years. Secondly, in 2022, the proportion of highly educated talents with undergraduate degree or above in R & D accounted for 48.25%, and the talent structure was excellent.
Power marketing 1.0 has been unable to adapt to the development of the current new energy market, power marketing 2.0 came out of nowhere: the State Grid marketing work is facing a series of challenges from the traditional power market to the "new energy era". However, the power marketing 1.0 system is still based on traditional electricity services, and it has been unable to adapt to the development of the current new energy electricity tariff business market in terms of business support, data sharing and platform expansion. Since 2019, in order to improve the convenience of new energy business, State Grid has launched the construction of Marketing 2.0. By 2022, the marketing 2.0 system launched by State Grid has been launched in State Grid companies in Jiangsu, Zhejiang, Anhui, Tianjin and other regions.
The "online national network" APP integrated service platform provides customers with convenient power services through the integration of government and enterprises.
Cooperation with Langxin Technology is greater than competition: Langxin Technology adheres to the two-wheel drive development strategy of "energy digitization + energy Internet" to build a B2B2C business model. Lang Xin technology helps the national network ICT power marketing 2.0 construction, to achieve a competitive relationship. In recent years, SinoCom and Lang Xin Technology have been committed to serving China's energy digital industry, which competes within the industry, but they have maintained cooperation since the marketing 1.0 system, and the two have actually become a concurrence relationship after more than 10 years. The two complement each other in the field of power energy digitization.
Earnings forecast, valuation and rating: the company's revenue has improved steadily and the margin of profitability has improved. We maintain the company's 2023E-2025E homing net profit level of 9.95 million yuan 11.42 billion yuan, respectively, corresponding to the 23-25 year EPS of 0.83 trillion yuan 0.95 trillion, the corresponding PE is 18-16-14 times (August 23, 2023 stock price is 15.18 yuan). Considering: 1) the company is an important subsidiary of the national network, the rapid layout of virtual power plants and power digitization ensures the abundant orders of the company and tamps the stability of the company's future performance; 2) the digital integration layout of the company is becoming more and more clear. through the four wholly-owned subsidiaries covering the information industry chain, the company's overall profitability has gradually increased. We maintain the company's "buy" rating.
Risk hint: digital investment in power grid is lower than expected, technological innovation and product iteration are not as expected, and core technology brain drain.