Summary of the report:
Rice Information is a civil information system overall solution provider, mainly for civil aviation air traffic management, urban road traffic management, urban governance three major industries. Rice Information is a civilian asset platform established by CLP Les Information Systems Company on the basis of CLP 28. 28 companies are deeply engaged in the field of military command information systems. Rice Information is currently entrusted to be managed by the controlling shareholder, Coles. The company expands civilian products on the basis of military C 3i theory and technology, continuously iterates and updates technical products, and has become a leading enterprise of civil command information system.
The civil aviation air traffic control system leads the whole country and breaks the international long-term monopoly. The company actively responds to the national civil aviation air traffic control modernization strategy, breaks the international long-term monopoly in the civil aviation air traffic control system, and speeds up the process of replacing state-owned products. In 2019, Beijing Daxing Airport provided Beijing Daxing Airport with the world's largest air traffic control automation system and China's first advanced scene activity guidance and control system (A-SMGCS) that meets the level 4 operating standards of the International Civil Aviation Organization (ICAO). At present, the national air traffic control system company has a market share of 42%, has rich research and development experience, and is a pioneer in the construction of civil aviation air traffic control system in China. With the construction and improvement of China's civil aviation system, it is expected that it will continue to enjoy favorable industrial policies in the future.
Focus on the three major businesses and continuously optimize the business layout. Based on long-term technology accumulation, the company gradually formed three major businesses: aviation traffic management, urban road traffic management and urban governance. It acquired Yangzhou Les in 2007 and actively expanded its enterprise information business. In recent years, the company is committed to business integration and optimization, currently intends to give up the low profit margin of weak power integration business and civil air defense business, reduce the scale of enterprise-level information and other income, and focus on improving the quality of the three core businesses.
Technological innovation + capital operation drive, leading domestic innovation. The company seizes the opportunity of ATA 8000N area management construction to promote the iterative upgrade of NUMEN-5000 prototype system, the development of new NUMEN ATC automation system Xinchuang platform, and the development of core products such as large-scale airport IIS system and airport operation resource intelligent allocation system based on "type IV airport". At the same time, during the reporting period, the company raised 1.033 billion yuan in its initial public offering, which will be used for the construction of intelligent civil aviation, intelligent traffic control and other projects, which will be conducive to enterprise technology upgrading and product optimization in the long run, so as to enhance the company's market position, improve its profitability, continue to stabilize its leading position in the field of air traffic control, speed up the expansion of airport business, and seek new momentum.
Investment suggestion: considering the leading civil command information system held by Les Information Department and the business layout in the three major areas of civil aviation, urban traffic and urban governance, the market share of civil aviation air traffic control system is the leading in the country. According to the company's first-half performance forecast in 2023-2025, the revenue is 2.011 2540max RMB 3.047 billion, the net profit of its parent is 1.174max 2707m, the corresponding EPS is 0.72max 1.07max 1.26RMB, the corresponding PE is 49X/33X/28X, and the "buy" rating is given.
Risk hint: performance and valuation judgment are lower than expected; downstream demand is lower than expected