Introduction to this report:
The company has become the only A-share strategic partner for Huawei's “Kunpeng/Shengteng AI+ Open Source Hongmeng” software and hardware integration. With the completion of the card's national computing power hub and key industry/region expansion, and advanced R&D investment, the performance growth rate may exceed expectations.
Key points of investment:
Covered for the first time, giving a rating for increasing holdings. As a leading domestic software and hardware integration enterprise, the company expects the company's revenue for 2023-2025 to be 31.24/43.28/5.958 billion yuan, respectively, and EPS of 0.12/0.24/0.38 yuan, respectively. According to PE and PS valuations, a target price of 23.13 yuan was given.
The company has become the only A-share strategic partner for Huawei's “Kunpeng/Shengteng AI+ Open Source Hongmeng” software and hardware integration. It has significant scarcity, and future performance will exceed expectations. The market believes that the company has entered a deep-water zone of strategic transformation, performance release is slow, and profitability is worrying. We believe that based on complete adaptation to Huawei's root technology, the company's investment results in AI technology, products, and ecological layout are gradually showing. As a company with an early layout and leading position in the fields of domestic intelligent computing, open source Hongmeng, etc., it has significant advantages in the fields of innovation and innovation and the “AI+ industry” along with its deep digital experience in government and enterprise. Therefore, continued deep collaboration with Huawei is expected to achieve a value multiplier effect, and the performance growth rate may exceed expectations.
Core logic: 1. Combining Huawei's root technology with the company's 27-year industry digitalization, product and channel capabilities have been significantly strengthened, the product matrix has been improved, and the company's moat has been further consolidated. In addition, the company is focusing on key industries and local governments, deepening the existing regional market and promoting the “platform+ecosystem” approach to more key cities; 2. The company's “computing power+data+algorithm” comprehensive AI layout has obvious advantages. Relying on its own industry data accumulation and AI hardware capabilities, the “AI+ industry” application has a first-mover advantage and is expanding at a relatively fast pace; 3. Facing the broad opportunities brought by autonomous security and the construction of a digital China, the development pace is relatively fast; 3. Facing the broad opportunities brought by autonomous security and the construction of a digital China, Tuowei Information accurately lays out card slots in the four major Eastern and Western Computing hub regions, strategic cards and countries The strategies are highly compatible and superimposed The digitalization experience of government and enterprises has become the vanguard of domestic alternative service providers.
Catalyst: The AI industry model and software and hardware product matrices are gradually being improved, and the “platform+ecosystem” approach is rapidly expanding.
Risk warning: Industry competition increases risk, and market expansion falls short of expected risk.