Main points of the report
Event description
On the evening of June 2, 2016, Sanmao sent God to issue a notice on the reply of the Board of Directors of Lanzhou Sanmao Industrial Co., Ltd. on the restructuring of Shenzhen Stock Exchange.
Event comment
The company disclosed the order situation, and the gambling performance was further clarified. The company disclosed the signing and intention to sign the order, customers include National Defense Research Institute, Shenhua and Lishi Information Technology Co., Ltd., Yingkou Port Group Co., Ltd., Lanzhou New area Management Committee, Lanzhou people's Government, etc., a total of 37000 units of each model are scheduled for the whole year. It is estimated that the operating income of the company in 16-18 years is 96.3675 million yuan, 157.9277 million yuan and 249.8625 million yuan respectively, and the corresponding net profit is 3012.26 million yuan, 5097.20 million yuan and 8465.40 million yuan respectively.
The demand for CPU is strong, and the domestic processor is a dark horse. According to the calculation of the number of government civil servants and national defense information expenditure combined with the demand for security and secrecy, it is estimated that the market demand for "localization substitution" will be millions. Coupled with the application demand of high information security industries such as finance, energy, transportation, and so on, the potential market scale of domestic CPU terminals will reach 100 billion. Zhong Zhi Core Technology's technology and products have certain comparative advantages in the industry. It is expected that with the gradual opening of the domestic market, Zhong Zhi Core Technology is expected to achieve a better market share and become a dark horse in the domestic CPU industry.
The future research and development direction is clear, will reduce the dependence on X86. The company has three R & D directions in the future: 1) develop the third-generation 64-bit multi-core UniCore processor; 2) enhance the existing SoC integration, realize the localization of all chips, and completely get rid of the dependence of the whole machine on foreign chips; 3) improve chip security technology, give full play to the advantages of combination of software and hardware, heterogeneous multi-core, and achieve a higher level of trusted computing. The company plans to gradually weaken the X86 architecture from 2018 to a new architecture based on UniCore, which can consider other open authorized instruction systems for multi-core development and integration if necessary.
The company has expressed a positive attitude towards the feedback of the exchange, which is worthy of recognition. After the meeting, the company will be engaged in CPU design, become a pure target of integrated circuits and is expected to become a plate leader. It is estimated that the net profit of the company in 16-18 years is 0.16,0.62 and 100 million yuan respectively, and the corresponding EPS is 0.06,0.23,0.37 yuan respectively.
Risk hints: systemic risk; further decline in the prosperity of the woolen industry; CPU business promotion is not as expected.