Events:
The company released its "2023 semi-annual report" after the close on August 27, 2023.
Comments:
The operating income achieved relatively rapid growth, and the net cash flow generated by operating activities improved significantly in the first half of 2023. In the first half of 2023, the company achieved operating income of 134.6658 million yuan, an increase of 29.0178 million yuan over the same period last year, an increase of 27.47% over the same period last year. The net profit of returning to the parent was 50.7218 million yuan, an increase of 245.33% over the same period last year. The main reason for the high growth was that the company transferred 10.83% equity of its subsidiary Zhuoyi Culture in June 2023, lost control over the subsidiary, and remeasured the remaining equity at fair value. It is confirmed that the investment income of equity transfer is 41.1172 million yuan, and the net profit of non-return is 4.6147 million yuan, an increase of 15.51% over the same period last year. The net cash flow generated by business activities was 22.4895 million yuan, mainly due to the better rebate in the first half of the year, resulting in an increase in cash received from the sale of goods and services compared with the same period last year.
China's cloud computing market is expected to maintain a trend of rapid development, and the company will directly benefit from the "White Paper on Cloud Computing Development" issued by the China Academy of Information and Communications in July 2023. With the recovery of the economy, the cloud computing market in the world is growing steadily, and China has maintained rapid development.
In 2022, the global cloud computing market will be US $491 billion, with a growth rate of 19%. It is expected that the market will continue to grow steadily under the stimulation of demand such as large models and computing power, and the global cloud computing market will exceed US $1 trillion by 2026. China's cloud computing market is still in a period of rapid development, and it is expected that the overall market size of China's cloud computing will exceed one trillion yuan in 2025. With the rapid development of cloud computing, Internet of things, 5G and other applications, China's cloud computing market will continue to maintain a rapid development trend, and the market size is expected to exceed 1 trillion yuan at the end of the 14th five-year Plan. As a key link in computing equipment such as PC, server and IoT, the market scale of BIOS and BMC firmware products will directly benefit from the growth of downstream equipment shipments, and there is a large market space.
Optimize the layout of basic software business, acquire 52% stake in Aipu Yang Shenzhen in order to optimize the layout of basic software business, enhance competitive advantage, and help the company's long-term development. In June 2023, the company acquired 52% stake in Aipu Yang Shenzhen. After the acquisition of Ai Puyang in Shenzhen, the company can further provide customers with independent and controllable integrated development tools on the basis of the existing independent and controllable cloud computing firmware and cloud service software. it will help the company to form a cloud computing industry chain business and product line of "firmware-development software-application software" that meets the requirements of "independent, safe and controllable", so as to enhance the company's competitiveness in the market. Ai Puyang Shenzhen specializes in providing integrated development tools (IDE) for enterprise database applications. IDE is an application used to provide a program development environment, which generally includes tools such as code editor, compiler, debugger and graphical user interface. Its status in the software industry is similar to the industrial mother machine. It is the software that produces software, and all software companies need to use it.
Profit forecast and investment suggestion
The company is a leading BIOS and BMC firmware development enterprise in China, and is expected to benefit from the development of Xinchuang industry. It is predicted that the operating income of the company from 2023 to 2025 is 3.96,5.42 and 719 million yuan, the net profit is 0.78,1.11,156 million yuan, the EPS is 0.89,1.28,1.79 yuan per share, and the corresponding PE is 79.31,55.28,39.50 times. Maintain a "buy" rating, taking into account the prosperity of the industry and the future growth of the company.
Risk hint
Core competitiveness risk; market competition risk; cloud computing equipment core firmware business model risk; Intel Corp authorized cooperation, there is a risk that can not be renewed; industry risk; macro environmental risk.