Overview of events:
1) recently, Shen Sangda issued the "2023 half-year performance Forecast". The estimated net profit loss of 165 million yuan to 140 million yuan in the first half of 2023 and 195 million yuan to 175 million yuan after deducting the non-return net profit in the first half of 2023, which is much smaller than that in the same period last year.
2) recently, the holding subsidiary China Electronic Cloud released the city-level large model industry intelligence platform-Xingzhi 2.0 and Xingzhi government vertical domain model at the World artificial Intelligence Conference.
Net profit loss narrowed sharply, high-tech industry services continued to grow according to the performance forecast, in the first half of 2023, the company adhered to the concept of high-quality development, the operating income increased steadily, and the parent net profit lost temporarily, but the loss has been significantly narrowed compared with the same period last year, the main reasons are: 1) the company continues to consolidate its dominant position in the field of industrial services. We will continue to serve customers in strategic emerging industries such as high-tech electronics, integrated circuits, biomedicine, new energy and new infrastructure, and the steady growth of high-tech industry service contracts in the first half of 2023 has led to a sustained growth in business income in the industrial service sector. 2) the company makes every effort to promote the creation of high-tech platforms and service application scenarios, and has greater efforts and investment in market expansion and product research and development, which has a short-term impact on the revenue and profit level of the company's digital and information services sector. 3) at the end of 2022, the company completed the mixed ownership reform of the subsidiary China Electric Cloud Computing Technology Co., Ltd. (note: changed its name from "China Electric Cloud Digital Intelligence Technology Co., Ltd."), and the ownership structure was further diversified. it has a certain impact on the net profit level of shareholders belonging to listed companies.
Relying on China's e-ecosystem to build a secure digital infrastructure holding subsidiary China Electronic Cloud is the only cloud platform under China Electronics, providing high-security digital infrastructure for government, financial institutions, public service institutions and large group enterprise customers. China's e-cloud has evolved into a distributed full-stack cloud product architecture system that can support major national projects and digitalization of key industries. The overall architecture system implements the concept of cloud native, security native and data native, and is based on self-developed trusted computing technology architecture. Through the joint support of distributed cloud native cloud operating system CCOS and hardware and software "Swift architecture", a unified technical service base is provided. Provide strong support in multi-cluster management, multi-cluster scheduling, and in terms of performance, attrition and flexibility.
Inheriting the "security gene" of China Electronics, China Electronic Cloud relies on China Electronics's rich network information industry resources and full stack technical capabilities, with independent technology as the core, cohesive cloud native, big data, artificial intelligence, blockchain and other comprehensive capabilities, to provide systematic cloud products, full stack technology and all-round operation services covering IaaS, PaaS, DaaS, government applications and enterprise applications. It has the advantages of full-stack security, one-cloud multi-core, multi-cloud fusion, multi-domain proprietary and so on. China E-Cloud is the first cloud computing vendor in the industry to provide both public cloud services with innovative capabilities and proprietary cloud products, as well as the first nationally produced software and hardware technology and cloud computing platform that supports PKS architecture with "enhanced" security capabilities through the security assessment of cloud computing services provided by the Central Network Information Office.
The development of data elements is accelerated, and the forward-looking layout products are the first to practice the release of "data Twenty", which indicates that the basic data system at the national level is expected to land quickly. As the "vanguard" of China Electronics in data innovation business, the company has taken the lead in product and technology research and development in the areas of data tools, data security and data elements, and achieved results in theoretical research, key technologies and pilot practice.
1) according to the company announcement, China Electronic data Group and the company provide data element products and solutions to ministries, provinces, municipalities, industries and other customers under the unified planning and deployment of China Electronics. The data Group mainly carries the investment and operation work, and sets up provincial-level joint venture platform companies with various provinces to promote the construction of local digital government. In this process, the joint venture platform will purchase the company's cloud products, data products and services to form a collaborative relationship.
2) according to the company announcement, the company has formed a series of data security and data element engineering products, such as data vault, data element processing and trading platform, secure and trusted data space, and has carried out data security and element engineering pilot projects in Wuhan, Zhengzhou, Deyang, Dali and other prefectures and cities.
Among them, Deyang pilot project has achieved phased results, Deyang data Innovation Center has been initially completed, the initial construction of Deyang data resources, data elements (components), data products three-tier market, Deyang data element Industrial Park has been put into operation.
The vertical big model of Xingzhi government affairs has been released with great weight, which empowers the intelligent government.
In July, China E-Cloud launched the city-level large model industry intelligence platform, Xingzhi 2.0 and Xingzhi government vertical domain model, at the 2023WAIC artificial Intelligence Application Innovation Forum. According to the disclosure of China E-Cloud official account, Xingzhi 2.0 constructed a city-level sustainable operation system with integrated algorithm, model, service and ecological integration through four independent innovation capabilities of unified base, overall dispatching, trusted space and full-stack service. complete the supply-side reform of urban intelligent kinetic energy and drive the sustainable growth and upgrading of urban capacity and value. The vertical model of Xingzhi government affairs is based on the experience of 70 + city digital governance practice, and through the intelligent platform of Xingzhi model industry, the technical system of Xingzhi government vertical model is optimized according to the characteristics of the vertical field of government affairs. with the Chinese e-cloud "Little Whale" digital person as the carrier, it provides government customers with an intelligent "star" experience of "communication, reasoning, innovation and security". Make government applications more credible, more accurate, smarter and more secure.
Investment suggestion
Shen Sangda is a leading enterprise in the field of engineering services in high-tech industry. As an important secondary enterprise of China Electronics, it focuses on the "cloud" and "digital" two main businesses in China's electronic independent security computing industry chain, and is expected to benefit from multiple opportunities such as state-owned assets cloud, data elements, AI model and so on. It is estimated that the income of the company from 2023 to 2025 will be 584.92 billion yuan, 665.77 billion yuan, respectively, and the net profit of returning to the mother will be 3.84 billion yuan, respectively. Considering that Shen Sangda has a leading position in the field of data elements and includes a high-growth scarce asset, China e-cloud, PE is higher than the industry average. For the first time, it covers the Buy-An investment rating, giving a six-month target price of 36.25 yuan, equivalent to a price-to-earnings ratio of 90 times 2024.
Risk Tips:
The R & D of new products and technologies is not as expected; the policy of data elements is not as expected.