Domestic firmware+cloud service two-wheel drive: Zhuoyi Information was founded in 2008. Since the acquisition of Nanjing Baiao Software, it has formed two major business lines of cloud service+firmware business. Baiao Software is a leading domestic firmware supplier and software service provider. It is also the only independent BIOS supplier commercially authorized by Intel in mainland China, and has provided secure and reliable firmware products and services to many well-known companies at home and abroad, such as Huawei and Lenovo.
Global hardware demand is expected to pick up, and industry Xinchuang brings opportunities to reshape the boundaries of the firmware market: AI helps the global computer hardware market recover and is expected to drive a new round of computer hardware upgrades, bringing opportunities for the computer firmware market to grow in size and increase in value. Under the influence of Xinchuang, the domestic computer supply chain has better development opportunities. At the same time, the increase in demand from Xinchuang will also help domestic firmware companies increase their share of authorized business, thereby increasing gross profit margins. The company has been deeply involved in the firmware industry for many years, and is a key partner of well-known domestic brands such as Huawei and Lenovo. Cooperation with Huawei dates back to 2008. Baiao Software, the main body of the company's firmware business, has also joined the Euler community and has become an important member of the Huawei ecosystem. The company is expected to use the advantages of cooperation with these domestic leaders and rely on Chuangchuang Dongfeng to rapidly expand its market share and achieve a double increase in revenue and profitability.
Lay out IDE to position the industry and improve industrial chain collaboration: the company completed the acquisition of Ai Puyang Shenzhen and laid out the IDE field. As one of the important tools in the field of software development, IDE currently lacks IDE products that support domestic cloud platforms at home and abroad. The company will use this to further improve its position as a Xinchuang complement in the future. Furthermore, after acquiring Ai Puyang Shenzhen, the company is expected to further provide customers with autonomous and controlled integrated development tools through business integration, and collaborate with the existing cloud service software business of listed companies to strengthen the overall competitiveness and profitability of the company's cloud services.
Profit forecast and rating: The company's revenue for 2023-2025 is estimated to be 405, 5.87, and 744 million yuan, respectively, and net profit to mother is 0.90, 1.49, and 223 million yuan, respectively, and the corresponding EPS is 1.04, 1.71, and 2.57 yuan, respectively. Referring to the consistent expectations and historical average valuation levels of comparable companies, Zhuoyi Information maintains the company's “buy” rating by referring to its competitive advantages, industry characteristics, and its own historical valuation.
Risk warning: Technology research and development falls short of expectations; risk of stopping cooperation with leading manufacturers; downstream demand falls short of risk.