Main points of investment:
Energy Internet integrated service provider, BIM based on electric power, to expand to the field of transportation and water conservancy.
The company was founded in 2000, deeply ploughing energy information, using online and offline integrated service model, the core business includes design software and services, infrastructure management software and control services, and power distribution business. Customers include power grid companies, power design enterprises, local power companies, power distribution companies, smart parks and energy-using enterprises. In recent years, the company has actively carried out the research and development of the BIM platform and continuously invested in optimizing the technical route and product system. At present, the company BIM has gained the first-mover advantage in the power industry and began to expand into transportation, water conservancy and other vertical fields. At present, the company's BIM-related technology and products have been initially applied in many projects in the field of transportation construction. Affected by the epidemic in 2020, the settlement of the company's project implementation has been delayed. The company's revenue decreased by 44.96% in the first half compared with the same period last year, but the company's design sector business recovered rapidly in the third quarter, and Q3 single-quarter revenue increased by 25.51% year-on-year.
Promote the transformation of product cloud. The company actively promotes the standardization and cloud transformation of software products and services, and constantly expands the SaaS product system based on 3D design software. at present, the company's SaaS core products include 3D design, project cost, project review, intelligent infrastructure, intelligent operation and maintenance, power big data and other products. In 2019, the company's revenue from cloud-based products and services accounted for more than 30%. By the end of June 2020, there were 71914 registered users of the company's cloud service platform, of which 38655 were registered users of the mobile + Zhaopin service cloud platform. The number of users, monthly average page views (PV), monthly average visitors (UV) and daily active users all increased significantly compared with 2019. We believe that the cloud transformation will help the company to meet the latest customer needs and improve customer stickiness with periodic version updates.
Sufficient technology reserves in the field of clean energy will benefit from the domestic promotion of "carbon neutralization". The international community pays active attention to the issue of carbon emissions, and "carbon neutralization" has become a general trend in the world.
Since 2021, many ministries and commissions in China have made intensive efforts to implement the goal of "carbon peak and carbon neutralization", and "carbon neutralization" will also become an important focus of the "two sessions" in the near future. On March 1, the State Grid released the action plan of "carbon Peak and carbon Neutralization", which mentioned speeding up the substitution of electric energy for fossil energy and vigorously developing clean energy at the same time. The company has a series of BIM products in the field of photovoltaic, wind farm and other clean energy design and management. At the same time, the company can provide consulting, planning and design and other base services for the new energy field. We believe that the company, as the leader of electric power BIM, with sufficient reserves of clean energy technology, will benefit from the domestic "carbon peak" and "carbon neutralization" promotion.
Profit forecast and investment rating: the first time to cover the "overweight" rating. We estimate that the company's EPS from 2020 to 2022 will be 0.44 soybean 0.53 PE 0.69 yuan, respectively, and the corresponding stock price will be 22-18-14 times that of the corresponding stock price, giving the "overweight" rating for the first time.
Risk hints: 1) the risk that the power information investment is not as expected; 2) the risk that the progress of BIM is not as expected; 3) the risk that the company's performance is not as expected; 4) systemic risk.