Main points of investment
The income is steady, the net profit doubles, and big data develops at a high speed. The company's revenue in 2020 was 19.82 billion Hong Kong dollars (HK $, the same below), of which 6.02 billion was in the service category and 7.85 billion in the solution category of yoy+11.8%;. Big data earns about 230 million yoy+124.53%. Full-year net profit was 970 million, of which yoy+103.1%, earned 980 million from the sale of associates.
Industry big data empowers supply chain business, covering a large number of head customers. The company has been working in the field of intelligent supply chain for many years, providing intelligent data services for e-commerce enterprises with the help of KingKooData platform, and realizing the optimization of purchase, sale and storage efficiency of the whole industry chain. In cooperation with Cainiao strategy, the company set a record of 4.5 million single warehouse shipments on Singles Day in 2020; in addition, it has provided supply chain and value-added services to five of the top 10 online education institutions, ranking first in the industry share.
The growth and efficiency of e-commerce drive profitability. In 2020, thanks to the growth of e-commerce business and the improvement of operational efficiency, the industry big data scenario achieved revenue of 7.41 billion (yoy+37.7%) and profit of 200 million (yoy+88.9%). There is a huge market demand for intelligent warehousing logistics. According to GGII, the domestic intelligent warehousing logistics market will reach 151.7 billion yuan in 2025, and the company is expected to gain a larger market share.
New infrastructure promotes smart cities, and the strategic effect of "Urban CTO" is beginning to show. According to the report of the "Digital Twin White Paper" in 2020, the market size of China's new smart cities will reach 1.3 trillion yuan in 2023. The company uses big data fusion technology with "Yanyun DaaS" as the core to help cooperative cities build a "data base", which is conducive to continued cooperation in the follow-up bidding projects of local governments, "Yanyun DaaS".
It can help users save 90% of the project communication and coordination time and shorten the project implementation cycle by 50%.
At present, the company has more than 2000 projects in more than 200 cities. In 2020, the revenue of the urban big data scene reached 480 million (yoy+46.0%) and the profit reached 35 million (yoy+149.4%).
Investment suggestion: with the development of 5G and the Internet of things, the demand for more efficient and green data centers continues to grow rapidly, the company has a continuously good industry foundation, and there is great potential for the development of new smart city construction and smart logistics market. With the continuous progress of the smart city project, it is expected that the scale effect will lead to a continuous increase in the company's gross profit margin.
Risk tips: 1) intensified market competition; 2) the risk of policy change; 3) the development of new business is not as expected.