Focus on providing information technology services and industrial intelligent applications to create a growth curve for intelligent solutions. The company is committed to the digital transformation of mining, electricity, chemicals, new energy and other industries. It has built a digital technology service ecosystem through self-developed 5G private network systems and industrial intelligent equipment, combined with cloud computing, big data and other technologies. Yunding Technology has formed a “five-in-one” product service system in the fields of intelligent mining, intelligent washing, intelligent power and new energy, intelligent chemicals, and digital platforms to provide customers with comprehensive informatization, digitization and intelligent solutions. The company's revenue in 2023 was 1.41 billion yuan, of which the revenue of intelligent mining and intelligent washing products and solutions was 806 million yuan, accounting for 70.67% of total revenue. The growth rate of intelligent washing products and solutions reached 65.23% in 2023. The company's profitability increased steadily, cash flow indicators continued to improve, and the net present ratio reached 1 in 2023.
47, showing the company's good financial position.
The digitization of the energy industry is a trillion-level stock market and is ushering in broad development prospects. Yunding Technology is a leading information technology enterprise in the coal industry. As the main energy consumer in China, coal needs intelligent upgrading are remarkable, and the trillion-level market size provides the company with huge room for development. Continued support from national policies, such as the “Guiding Opinions on Accelerating the Intelligent Development of Coal Mines”, has further promoted the process of intelligent coal mines. Through self-developed high-reliability 5G private network systems and series of products, combined with AI, big data and other technologies, Yunding Technology provides comprehensive digital solutions for mining, electricity, chemical and other industries, and is actively shaping the advantages of the energy technology industry cluster.
Focusing on intelligent transformation, cooperation with Huawei ushered in new opportunities for development. Yunding Technology joined hands with Huawei's cloud technology to explore intelligent applications in all scenarios of mine production. By constructing the “Pangu Mine Big Model”, the first large-scale mining model in the coal industry, it has realized the application of AI technology in various professional scenarios, greatly improving the level of mine intelligence.
In addition, Yunding Technology has also independently developed the Dingyun Industrial Internet Platform, created a “cloud edge” integrated architecture system, realized border cloud collaboration and data sharing, and provided full-process services for the construction of intelligent scenarios in the energy industry.
Investment advice: We expect the company's revenue for 2024-2026 to be 1,417/17.44/21.36 billion yuan, respectively, and net profit to mother of 0.87/1.30/175 million yuan, respectively, and the corresponding PE is 65/44/32 times, respectively. Considering the rapid growth and high-quality development of the company's performance, as well as the large market space and development potential in the application of the Pangu Big Model, we covered the “buy” rating for the first time.
Risk warning: Risk of macroeconomic decline; risk of increased competition in the industry; risk of policy implementation falling short of expectations; risk that public data used in research reports may be delayed or not updated in a timely manner; profit forecasts are based on multiple assumptions, and there is a risk that they fall short of expectations.