Recommendation logic: 1. The positive transformation of the company, relying on the resource advantages of central enterprises and technological advantages of major shareholders, to create a "data lake +" strategy, data lake construction and operation continue to drive the healthy growth of the company's performance; 2. Policy support + demand-driven, data lake space is vast. The TCO cost of the company's optical and electromagnetic hybrid storage products to store 1PB data for 50 years is only 45% of that of disk arrays. The solution is economical, environmentally friendly and has great advantages. By the end of 2020, the company has built 33 data lakes, forming 3042PB data storage capacity, and many lakes have achieved higher-than-expected profits ahead of schedule. Data operation potential is huge in the future. 3. Strategic cooperation has been reached with Huawei, Mobile and other outstanding enterprises to jointly promote the ecological cooperation of the data Lake and the application of Blu-ray storage technology through enterprise cooperation channels, and the 2B business is expected to launch.
The data Lake business led to the healthy growth of the company's performance: the company seized the opportunity of the digital economy and transformed into big data service in 2016, featuring Blu-ray storage, developing big data infrastructure business with optoelectronic integration, and introducing source water for performance growth. By the end of 2020, a total of 23 demonstration lakes had been completed and put into operation. The revenue of digital economic infrastructure increased from 92.47 million yuan in 2017 to 1.66 billion in 2020, and the share of revenue increased from 3.1% to 59.3%. Considering the huge volume of public data in China, the company's 2G-end business still has great potential for growth, and the data operation value still needs to be tapped, and the Red Sea market for data analysis and trading remains to be developed. The company has a first-mover advantage as an infrastructure construction and operator.
Strategic cooperation with Huawei, three major operators and a number of cloud service providers to broaden business channels: the company has a comprehensive strategic cooperation with Huawei in two major projects, such as Blu-ray Storage and Kunpeng data Lake Construction. Relying on Huawei's technology, brand and market advantages in the areas of thermal storage, digital economy and cloud services, while upgrading Blu-ray storage products, expand the scope of Blu-ray storage business Provide operators with a data storage base to broaden the scope of Blu-ray storage applications; at the same time, the company has signed strategic cooperation agreements with a number of cloud service providers, and the 2B business is expected to accelerate the volume in the future.
Profit forecast and investment advice. It is estimated that the company's net profit from 2021 to 2023 will be 620 million yuan, 880 million yuan and 1.16 billion yuan respectively, with a growth rate of-9.55%, 41.2% and 32.6% respectively, and the corresponding PE will be 27x, 19x and 14x respectively, which is lower than the average 35x level of comparable companies in 2021. Considering that the company is the only scale supplier of Blu-ray storage business in China, the leading service provider in data operation, and has great potential, the company is given a "buy" rating of 35X PE in 2021, corresponding to the target price of 33.25 yuan, covering for the first time.
Risk tips: data Lake business expansion may be lower than expected; company revenue recognition and rebate may be lower than expected; company data operation business may be promoted or lower than expected.
