Yi Hualu is a data asset service provider with a central enterprise background. In 2023, the company completely switched from data lake construction to data lake operation. At the beginning of its listing, the company was one of the leading providers of intelligent traffic management systems in China at the time.
In 2016, the company officially released the data lake concept. By March 31, 2023, the company had implemented 32 data lakes nationwide, and by 2023H1, 25 data lakes had entered the operation stage. Since 2021, the company has actively optimized the company's business structure, making asset-light data operation a key development direction in the future. Since 2022, Yi Hualu has accelerated the shift to data element related operations. In 2023, the company's main business has completely shifted from data lake construction to data lake operation. With business transformation, the company has slowed down the undertaking and construction of data lake projects, and business performance fluctuated in stages. In the long run, business performance is expected to improve with the development of data operation services.
The company focuses on the first-level data element development market, and integration into the electronics ecosystem is expected to inject new advantages into the company. The company's core competency of “receiving, storing, managing, using, and easy” throughout the data life cycle is highly compatible with the main tasks and content of data element level development. At the same time, based on the central enterprise background and innate advantages and first-mover advantages of central and local cooperation, it has a strong competitive advantage in the field of data element level development. In 2023, the State Assets Administration Commission officially approved the integration of Hualu Group, the controlling shareholder of the company, into China Telecom Group as a whole, which will help China Telecom reinforce key links in the industrial chain and form a collaborative advantage in the fields of intelligent manufacturing and data storage. With the support of the group, the company has now participated in China Telecom Group's data element industry planning as one of the core units. Subsequent companies will continue to focus on developing data infrastructure and data operation services, accelerate organizational optimization, and accelerate the pace of transformation into data-element state-owned enterprises.
Currently, magnetic storage mainly relies on imports, and key industries are speeding up the pace of replacing magnetic storage with Blu-ray. The “Action Plan for the High-Quality Development of Computing Power Infrastructure” released in 2023 provides guidance on advanced storage, which indicates that all-flash memory and Blu-ray will be used as advanced storage media to upgrade key technologies. Therefore, superstorage based on Blu-ray storage is expected to open up broad alternative space in key industries in the future and is expected to continue to rise.
The data element business is forming a new growth engine. The local public data element industry chain where the company is located currently has a total market space of about 30-40 billion yuan. In addition to the subsequent local public data operation and monetization market of about 100 billion yuan, the overall data operation and service business space is vast. With the implementation of public data licensing and operation measures at the national level, more than 300 prefecture-level city units across the country, covering more than 2,800 district and county units across the country, will quickly begin data capitalization work. The company will use data asset services (that is, data asset entry) as a breakthrough to carry out related work such as data mapping, management and value evaluation, and help government and enterprise customers build data resource management platforms. Yi Hualu will provide software and hardware infrastructure construction, and then provide data operation services for local government and enterprise customers. Currently, the company's data asset services, data resource management platform construction, and product services and market expansion related to public data licensing operations are maturing at an accelerated pace, and the data element business is forming a new business growth engine.
Profit forecast and investment advice: The company's revenue for 2023-2025 is expected to be 779/1,463/1.916 billion yuan, and net profit to mother is -21.22/0.05/130 million yuan. The company has unique advantages in the domestic Blu-ray storage industry chain, and has rich exploration and accumulation in the field of data operation and services. After integrating into the electronics ecosystem, it can take advantage of collaborative advantages, and is expected to seize market opportunities in the data element business and accelerate development. The first coverage gives an “gain” rating.
Risk warning: The release of policies related to data elements falls short of the expected risk; the implementation progress of local units falls short of the expected risk; the progress of electronics integration and company business optimization falls short of the expected risk.