Overview of events
According to the official account of run and Software, on October 31, jointly sponsored by China Southern Power Grid Co., Ltd. (hereinafter referred to as "Southern Power Grid Co., Ltd.") and Open Atomic Open Source Foundation, sponsored by Southern Power Grid Digital Grid Research Institute Co., Ltd., and co-sponsored by Huawei Technology Co., Ltd., the "Conference on the operating system" was solemnly held in Beijing National Convention Center. It marks the official birth of the first power thing operating system (Power Hongmeng OS) in China!
Analysis and judgment:
With the acceleration of the intelligent power grid, the distribution link is expected to become the focus of the investment and construction of the new power system in the future.
According to the company's report, the energy Internet is an important technical path to achieve the zero-carbon goal, and the construction of a new power system continues to catalyze the demand for power grid information products. The Southern Power Grid Corporation issued the Power Grid Development Plan of the 14th five-year Plan of Southern Power Grid, which pointed out that during the 14th five-year Plan period, the planned investment of Southern Power Grid will be about 670 billion yuan; State Grid announced that it will invest US $350 billion (about 2.23 trillion yuan) during the 14th five-year Plan period to promote the transformation and upgrading of the power grid. This means that the total planned investment of State Grid and Southern Power Grid during the 14th five-year Plan will exceed 2.9 trillion yuan. If some regional power grid companies other than the two major power grid giants are included, the total investment of the national power grid during the 14th five-year Plan period is expected to be nearly 3 trillion yuan. This is obviously higher than the total investment of 2.57 trillion yuan in the 13th five-year Plan period and 2 trillion yuan in the 12th five-year Plan period. We believe that with the continuous expansion of the smart grid, the proportion of the smart grid investment in the total grid investment is on the rise, the grid intelligence is accelerated, and the distribution link is one of the main links in the construction of the smart grid. It has become the focus of the investment and construction of new power systems in the future.
The company has been deeply engaged in the power industry for a long time, relying on OpenHarmony to achieve independent control of the industry.
According to the official account of Runhe Software, 1) Runhe Software has been deeply cultivated in the power industry for a long time, providing customers with products and solutions such as Internet of things, power AI, power marketing, power information and information security, etc. Customers include power generation enterprises, power grid enterprises, new energy enterprises, research institutes, etc., and have accumulated more than 10 + years of core technology research and development capabilities and service experience. The cooperation between Runhe Software and China Southern Power Grid can be traced back to 2016, and it deeply participated in and accompanied and witnessed the whole process of power grid technological innovation. 2) relying on the profound technology accumulation on the OpenHarmony digital base and the deep understanding of the power grid field, since 2022, Runhe Software has actively explored and practiced the power grid technology direction based on OpenHarmony with forward-looking strategic investment, and has actually participated in and deeply supported the research and development of the Dianhong IWP operating system, which is closely combined with the design concept of the DIEC operating system. It has taken the lead in independent research and development and launched a number of schemes, such as intelligent Taiwan district panoramic monitoring system and transmission line panoramic monitoring system based on the Internet of things operating system, to match the deployment needs of autonomous controllable intelligent things in the power industry in time.
Investment suggestion
We maintain the revenue forecast of the company for 23-25 and EPS of 0.25Universe 0.54 and 0.88 for 23-25, respectively. Corresponding to the closing price of 26.62 yuan per share on October 31, 2023, the PE is respectively 104.95TP49.53 and 30.24 times. We are optimistic about the future growth of the company's innovation business and maintain the company's "buy" rating.
Risk hint
Product research and development is not as expected; Xinchuang's progress is not as expected; market competition is intensified.