Performance has remained steady, with cloud infrastructure accounting for more than half of revenue. According to the 2023 performance report, the company's revenue was 8.039 billion yuan, 5.57% year on year; net profit to mother was 836 million yuan, 4.29% year on year; after deducting non-net profit of 787 million yuan, 1.41% year on year. According to 2022 data, cloud infrastructure revenue was 3.895 billion yuan, 1.24% YoY, accounting for 51.14%, gross profit margin 17.48%; digital electricity revenue was 1,652 billion yuan, 8.73% YoY, accounting for 21.70%, gross profit margin 22.18%; enterprise digital revenue was 2,049 billion yuan, -1.44% YoY, accounting for 26.91%, gross profit margin 25.42%.
Listed companies coordinate the layout to empower the strategy and business of the 4 subsidiaries. The company's four subsidiaries are assets acquired during the major asset restructuring with the State Grid ICT Industry Group in 2019. First, CLP Puhua is positioned as a provider of digital energy and power products and solutions, with 2023H1 revenue of 910 million yuan and net profit of 74 million yuan; second, CLP Feihua is positioned as a cloud network infrastructure construction and operation service provider, with 2023H1 revenue of 800 million yuan and net profit of 53 million yuan; third, Jiyuan Software is positioned as a cloud network infrastructure and power digitization service provider, with 2023H1 revenue of 592 million yuan and net profit of 1.4567 million yuan; fourth, CLP Star is positioned as a connector for energy users, energy An ecological leader, dedicated to becoming a smart energy platform-based Internet enterprise, 2023H1 has revenue of 509 million yuan and net profit of 38 million yuan. Listed companies coordinate the overall business development layout. On the one hand, they concentrate the superior resources of listed companies to coordinate new business incubation work, and on the other hand, they clarify their corporate positioning and promote their business development based on the resource endowments and business advantages of the four subsidiaries. At the same time, the headquarters of the listed company acts as a financing platform to unify and guide the work related to investment and financing. In addition, listed companies are also carrying out institutional innovation work, such as implementing equity incentives.
Lay the foundation for electricity digitalization, enterprise digitalization, and cloud network infrastructure, and develop incubated businesses. ① Electricity digitization business, in terms of digital services for 2023H1 power grid customer service, the “baseline+” version of the marketing 2.0 unified software was launched in 6 provinces; in terms of digital services for power production, the initial completion of capacity building such as order grabbing models, secondary dispatch, and work order center operation analysis; in terms of electricity market-based trading services, the next-generation electricity trading system supports the efficient operation of the electronic business license system of the Jiangxi Electric Power Trading and Retail Platform; in terms of “dual carbon” business, the national carbon emission monitoring and analysis service platform that supports research and development successfully passed the National Development and Reform Commission's inspection; enterprises In terms of smart energy services, the second phase plan for a new power load management system has been completed, and preliminary cooperation agreements have been reached with electric power companies in 8 provinces and cities, including Tianjin and Shanxi. ② Enterprise digital business, in terms of digital services for 2023H1 power grid management, has carried out adaptive transformation of ERP in the financial center and deepened the construction of iState Grid applications; in terms of digital services for enterprise management, next-generation enterprise portals are combined with the construction of grass-roots digital service centers to further promote grass-roots business integration and build exclusive workbenches. ③ Cloud network infrastructure, in terms of 2023H1 power grid platform services, completed the installation and deployment of the four components of the Hebei, Jiangxi, Ningxia and Chongqing marketing 2.0 business verification environment; completed the upgrade research and preparation of the 821 version of the State Grid Cloud Platform; in terms of power grid digital infrastructure services, actively promoted the implementation of key data center projects such as the Ningxia Electric Power Data Center; in terms of cloud network infrastructure services, continued construction of 100G high-efficiency data transmission platform projects, completed the installation of 106 stations in 15 provinces, and promoted the completion and operation of the project according to plan.
Raising capital, equity, R&D, and management, and make more efforts to improve the quality and efficiency of operations. ① In terms of fund-raising, the company raised a total of 1,481 billion yuan in 2020. As of June 30, 2023, the company had invested 1,282 billion yuan in fund-raising investment projects. The funds raised were invested in cloud network computing power infrastructure and high-efficiency data transmission platform construction projects, new power system-high efficiency data transmission platform construction projects, cloud network infrastructure software and hardware system construction projects, and “Internet +” electricity marketing platforms. ② In terms of equity, the controlling shareholder of the company transferred shares with China Telecom Investment and transferred 47 million shares of the company to China Telecom Investment free of charge. China Telecom Investment has become a shareholder of the company and has established a capital bond with the company. In the future, the company will actively explore the possibility of business cooperation with China Telecom.
③ In terms of R&D, 2023H1 invested about 226 million yuan in R&D. ④ In terms of management, the company is committed to building a perfect and efficient internal lean management system.
Profit forecast and investment suggestions: We believe that the company is a key enterprise in the digital transformation of energy and will fully benefit from “digital China” and new power system construction opportunities. On the one hand, the company will establish the business foundation of enterprises, digitization of electricity, and cloud network infrastructure, and on the other hand, develop new businesses, and continue to open up room for growth.
We expect that in 23-25, the company's highest share of product cloud network infrastructure growth rates will be 5%, 5.5%, and 6%, respectively; the company's revenue growth rates will be 5.6%, 6.5%, and 7.6%, respectively. The gross margin of the company's cloud network infrastructure continued to rise, with 18.48%, 19.48%, and 20.48% respectively in 23-25; the company's overall gross margin was 21.1%, 21.6%, and 22.1%.
We expect the company's revenue for 2023-2025 to be 80.39/85.65/9.214 billion yuan, respectively, and net profit to mother of 8.36/10.12/1,182 billion yuan, respectively, and corresponding EPS of 0.70/0.84/0.98 yuan, respectively. Combined with the current industry stage and the company's growth rate and barriers, the company was given 25-30 times the 2024 dynamic PE, with a 6-month reasonable value range of 21.04-25.25 yuan. For the first time, coverage was given a “superior to the market” rating.
Risk warning: the risk of excessive reliance on related transactions; the progress of intelligent grid investment falls short of expectations; policy drivers fall short of expectations.