新华三业绩稳健增长，国际业务H3C 品牌保持高增势头：公司控股子公司新华三集团有限公司 24Q1-3 实现营业收入 402.66 亿元，同比增长 7.18%；其中，实现国内政企业务收入 316.83 亿元、国内运营商业务收入 66.93 亿元、国际业务收入 18.90 亿元。公司加快海外市场布局，国际业务中 H3C 品牌产品及服务自主渠道业务收入前三季度达到 6.85 亿元，同比增长 69.26%，其中今年前三季度网络、服务器及云智产品海外销售均实现快速增长。公司在政企市场持续发力，加速推进AI for ALL 业务赋能战略，市场表现突出，公司持续拓展全球业务版图，第三季度完成韩国、乌兹别克斯坦、智利、波兰等四家子公司注册，海外代表处增加至19 个。Description of the event
Recently, the company announced its 2024 three-quarter report. In the first three quarters of 2024, the company achieved revenue of 58.839 billion yuan, up 6.56% year on year; net profit to mother was 1.582 billion yuan, up 2.65% year on year, after deducting non-net profit of 1.388 billion yuan, up 6.91% year on year.
Incident comments
The performance of Xinhua III grew steadily, and the international business H3C brand maintained a high growth trend: the company's holding subsidiary, Xinhuasan Group Co., Ltd. 24Q1-3 achieved operating income of 40.266 billion yuan, an increase of 7.18% over the previous year; among these, it achieved domestic government and enterprise revenue of 31.683 billion yuan, domestic operator business revenue of 6.693 billion yuan, and international business revenue of 1.89 billion yuan. The company accelerated its overseas market layout. In the international business, revenue from the independent channel business of H3C brand products and services reached 0.685 billion yuan in the first three quarters, an increase of 69.26% over the previous year. Among them, overseas sales of network, server and Yunzhi products all achieved rapid growth in the first three quarters of this year. The company continued to make efforts in the government and enterprise markets to accelerate the AI for ALL business enablement strategy. The market performance was outstanding. The company continued to expand its global business footprint, completed the registration of four subsidiaries in South Korea, Uzbekistan, Chile, and Poland in the third quarter, and increased the number of overseas representative offices to 19.
The 30% share acquisition was implemented smoothly, and the subsidiary's consolidated statement increased Q3 profit: Looking at the 24Q3 single quarter, the company achieved net profit of 0.581 billion yuan, an increase of 12.1% over the previous year. In addition to the increase in performance driven by the company's revenue, the consolidated subsidiary also increased Q3 profit in the single quarter. On September 5, 2024, the company officially announced the completion of the 30% share purchase of Xinhua 3. Ziguang International, a wholly-owned subsidiary of the company, purchased 29% of its shares in Xinhua 3 Group Co., Ltd. (hereinafter referred to as “Xinhua 3”) from H3C Holdings Limited by means of cash payment, and purchased 1% of the shares of Xinhua 3 from Izar HoldingCo., Ltd. through cash payment. In total, it purchased 30% of Xinhua 3's shares for 2.142 billion US dollars. After the transaction is completed, the company's shareholding ratio in Xinhua 3 through Ziguang International will increase from 51% to 81%. In the future, the company's ability to control Xinhua 3 will be further enhanced, and the business synergy effect is expected to be more significant.
Build a competitive product system around “computing power x connection”. On the network side, the company launched the industry's first intelligent computing switch supporting a 1.6T port rate, breaking the upper limit of network performance; pioneered the release of industry-leading CXL optical interconnection solutions to achieve long-distance, low-latency CXL connectivity across servers and cabinets in the data center; and the first batch of application-driven data center solutions passed L4.0 certification for the basic capabilities of self-intelligent networks, advancing the level of network intelligence. In terms of computing power and storage, more environmentally friendly and low-cost single-phase immersion liquid cooling solutions and phase change immersion liquid cooling solutions have been introduced, based on solving the increasingly prominent heat dissipation problems of high-power chips. At the new intelligent computing product launch conference held recently, the company unveiled a number of new products, including the new-generation intelligent computing product G7 series multi-heterogeneous computing power server and next-generation AI storage, which greatly improved the efficiency of users' AI training and inference.
Profit forecast and investment advice: In 24Q3, the company's revenue and profit growth both grew steadily, and the revenue growth rate accelerated in the single quarter.
The company is based in the field of next-generation information and communication, continuously consolidating technological leadership and improving the competitiveness of products and solutions. At the same time, it has successfully completed the settlement of 30% of Xinhua's shares. Currently, profit margins have increased, and future industrial collaboration will be even more remarkable.
Without considering the impact of the acquisition of the remaining shares of Xinhua 3, the company's net profit from 2024-2026 is estimated to be 2.209 billion yuan, 2.536 billion yuan, and 3.027 billion yuan, corresponding to a year-on-year growth rate of 5%, 15%, and 19%, corresponding to PE 35 times, 31 times, and 26 times, maintaining a “buy” rating, and is highly recommended.
Risk warning
1. The digital transformation of the industry fell short of expectations;
2. Industry competition falls short of expectations.
