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华东电脑(600850):业绩稳健增长 内生外延拓宽数字化版图

East China computer (600850): steady performance growth, Endogenous extension, broadening Digital Map

興業證券 ·  Mar 30, 2021 00:00

Event: on March 29, 2021, the company released its annual report 2020, with operating income of 8.13 billion yuan, an increase of 4.51% over the same period last year, and non-net profit of 319 million yuan, an increase of 7.74% over the same period last year.

With the rapid growth of financial technology business, investment in IDC contributes to the transformation and upgrading. The company's core business will continue to grow in 2020.

The business revenue of industry information solutions was 5.877 billion yuan, an increase of 2.2% over the same period last year. Among them, the company focused on developing financial technology business and signed strategic cooperation agreements with ICBC, China Construction Bank, Bank of Communications and other banks. The annual revenue reached 3.485 billion yuan, an increase of 30% over the same period last year. The business revenue of intelligent solutions in data centers was 1.07 billion yuan, an increase of 18.92% over the same period last year.

Revenue from special services and continuing services totaled 1.312 billion yuan, an increase of 5.39 percent over the same period last year. The current financial cloud base project under construction by the company plans to build a 3024-rack-sized big data center, which is expected to help the company's business transformation and upgrading.

The gross profit margin increased in 2020 and continued to increase investment in research and development. In a single quarter, the company realized net profit of 0.64,0.89,0.94 and 71 million yuan respectively in each quarter of Q1-Q4 in 2020, with year-on-year growth rates of-19.00%,-12.29%, 16.47% and 16.74%, respectively. It shows that although the company was greatly affected by the epidemic in the first half of the year, it has gradually got rid of its negative impact in the second half of the year, and its performance has improved quarter by quarter. In terms of profitability, the gross profit margin of sales in 2020 was 15.24%, an increase of 0.29pcts over 2019. The company continued to increase R & D investment, with annual R & D expenditure of 307 million yuan, an increase of 9.27% over the same period last year High R & D investment is expected to accelerate the upgrading of the company's business and enhance the company's long-term competitiveness.

The release of a new equity incentive plan is conducive to the long-term development of the company. Recently, the company issued a draft stock equity incentive plan, which intends to grant 25.123376 million stock options to the incentive object, with the same number of shares corresponding to the bid, accounting for about 5.89% of the total share capital on the date of the plan announcement. The incentive object was awarded to 315 people for the first time, and the exercise price was 24.14 yuan per share. The performance review requires that the net profit in 2022-2024 is no less than 12 per cent of the compound growth rate in 2020, and the return on net assets is not less than 10 per cent. It is expected that the equity incentive plan will fully mobilize the enthusiasm of employees and support the sustainable development of the company.

It is proposed to acquire Yaxun Network and Baifei Electronics to enhance the solution capability of the industry. March 19, the company announced plans to acquire 99.76% shares in Yaxun Network and 100% stake in Baifei Electronics. Yaxun Network mainly provides vehicle networking products and solutions; Baifei Electronics is engaged in the key software and hardware business of embedded systems, including embedded computers, high-performance signal processing, data recording storage and information processing modules. We believe that if the acquisition is successfully landed, it will further expand the breadth and depth of the company's digital transformation while thickening the performance of listed companies.

Profit forecast and investment advice: without considering the increase in profits brought by the assets to be acquired, the company's net profit from 2021 to 2023 is expected to be 3.56,4.03 and 459 million yuan respectively. Coverage for the first time, giving a "prudent overweight" rating.

Risk hint: the prosperity of the industry is not as good as expected; the progress of restructuring is not as expected.

The translation is provided by third-party software.


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