Deeply ploughed Wisdom China for more than 20 years, transformed several times and expanded the market.
The company was founded in 1998 and listed on the Shenzhen Stock Exchange in September 2009. In 2015, the company successfully acquired Beijing CLP Xingfa and entered the software and information technology services industry. At present, the company's business has steadily expanded to smart China (smart city, smart national defense, smart time and space), 4G/5G new basic communications and the new generation of high-speed backbone optical fiber network. With the rapid development and steady increase in the number of projects, the company has gradually become a leading supplier of intelligent Chinese core technology, products and comprehensive solutions and operational service providers. From 2015 to 2019, the company's revenue and return net profit CAGR score was 33.30% and 43.93% respectively. In the first three quarters of 2020, the company achieved a net profit of 266 million yuan, an increase of 60.02% over the same period last year.
Insist on technological autonomy and control, increase and strengthen technical barriers
The company adheres to the technology research and development route of "independent and controllable, domestic replacement". From 2015 to 2019, the company's R & D expenditure CAGR was 26.10%. In August 2020, the company was included in the Shenzhen artificial Intelligence (AI) 50 Index, demonstrating the company's technological strength. In February 2020, the company disclosed a fixed increase plan (revised version) to raise no more than 2 billion yuan. For cloud computing and big data independent controllable magneto-optical storage technology research and development and industrialization project (700 million yuan), independent controllable cluster embedded artificial intelligence image analysis system research and development and industrialization project (250 million yuan), Hezhang county wisdom Hezhang PPP construction project (600 million yuan) and supplementary working capital (450 million yuan). The new project investment will further improve the company's product structure, enhance the comprehensive service capacity, enhance the product self-adoption ratio, and enhance the company's core competitiveness and profitability.
It is expected that the company has DI-edge intelligent edge, DI-cloud digital cloud base, DI-network network, DA data application and other basic supporting platform software, forming the "edge / network / cloud / use" four-in-one capability, and the synergy effect of each business is obvious. New track (DI+DA) Global Global Smart City breaks the chimney type and isolated island vertical industry application construction mode of traditional smart city project, and the new solution has obvious advantages. The company has built the only two global smart city benchmarking projects in the country, forming a benchmarking effect. According to the company's website, the total number of bid-winning orders reached 3 billion yuan in 2019. In the first half of 2020, the subsidiary signed an agreement on the investment and development project of land reserve resources in Xiangfu District, with a total price of 550 million yuan, and signed a cooperation agreement with China Unicom Guangxi Branch, with a total investment amount of 666 million yuan.
Profit forecast: the smart city industry is booming, the company has sufficient orders, and the "recommended" rating company has a deep accumulation in the field of smart China, and the "edge / network / cloud / use" four-in-one, the advantage of the global solution is obvious, and the sufficient growth of orders is expected. It is estimated that from 2020 to 2022, the company's EPS will be 0.62,0.92,1.18 yuan, corresponding to PE 14,10,8 times, covering for the first time and giving a "recommended" rating.
Risk tips: macroeconomic downturn, intensified industry competition, risk of project and technology upgrading, etc.