Based on the data lake strategy, we will promote data element operations. The company began large-scale promotion and application based on Hualu Group's Blu-ray storage in 2017. Starting with government big data industry infrastructure, the company built a government big data foundation, and built 32 data lakes across the country in 6 years. Yi Hualu's core competency of “receiving, storing, managing, and using” throughout the life cycle of data is highly compatible with the main tasks and content of integrated government big data construction. Based on the central enterprise background and central local cooperation, the company has a strong competitive advantage in obtaining government big data operation service services. The requirements for open sharing of data elements are met through low-cost aggregation, standardized authorization, efficient governance, asset transactions, and full-scenario application of data elements. We believe that the company is fully transforming into a data element operation service provider based on the data lake strategy.
Build a product system for the full life cycle of data elements. 1. “Receipt”: Using digital retina as a representative product, video data is used for value applications such as “aggregation, integration, governance, empowerment, operation, and compliance” to provide government and enterprise customers with integrated product services for video access, aggregation, analysis, and application. 2. Number of “stores”: Represented by super intelligent storage, the cold storage of enterprise-grade unstructured data provides users with data storage services and one-stop storage solutions for all media and scenarios. 3. “Governance” numbers: Using EasyZhi as the representative product, refines the core capabilities of data product tools and governance services, and establishes product tool capabilities such as data aggregation, data management, data development, data utilization, and data sharing. 4. Number of “uses”:
Related products, represented by smart transportation and smart cities, establish various data application models in the user's entire business process with the goal of reducing costs and improving safety to help users digitally transform. 5. “Easy” Digital: Using the Easy Number Factory as a representative product, it relies on self-developed data sandboxes, private computing, and blockchain basic service platform tools to create a secure digital platform that realizes “data use is not desirable, controllable and measurable”.
It spearheaded the first “Data Asset Listing Service Consortium” in the country. According to the company's official website, on September 8, 2023, under the guidance of relevant departments such as the Ministry of Finance, the Development and Reform Commission, and the State Assets Administration Commission, Yi Hualu led the first “Data Asset Registration Service Consortium” in the country. The company and Chinese enterprises China, PricewaterhouseCoopers China, China Everbright Bank, Beijing Dacheng Law Firm, Telecom Network Security, Beijing International Big Data Exchange, Shenzhen Digital Exchange, etc. have jointly signed the “Data Asset Registration Service Consortium Proposal” to promote business cooperation among all parties, provide one-stop solutions for enterprise customers, emphasize technical empowerment, ensure the trustworthiness of data asset registration standards, and promote the high-quality development of the data element economy. Through the establishment of the country's first data asset registration service consortium, Yi Hualu will provide enterprises with services such as consulting and planning, data asset management, accounting and audit, financing and credit, legal advice, and safety supervision, and achieve sustainable revenue through regular asset inventory of enterprises.
The actual controller of the company was changed to China Telecom. According to the “Beijing Yihualu Information Technology Co., Ltd. Acquisition Report”, before this acquisition, China Telecom did not hold Ehualu's shares; Hualu Group was the controlling shareholder and actual controller of Ehualu, holding a total of 33.94% of Ehualu's shares. After the acquisition was completed, the direct controlling shareholder of E-Hualu was still Hualu Group. By holding 66.78% of Hualu Group's shares, China Telecom indirectly controlled 33.94% of E-Hualu Group's shares, that is, the actual controller of E-Hualu was changed from Hualu Group to China Telecom.
Profit forecasts and investment recommendations. We believe that as a state-owned enterprise, in the context of the existing data lake business strategy, the company invigorates the data operation circuit and lays out the entire data element industry chain, and has a remarkable first-mover advantage. Based on the company's many years of deep experience in the data element business, we assume that the company's data element business is developing smoothly and that the company's revenue will recover in 2023; assuming that the company's internal integration is smooth after the actual controller changes, the company's revenue will grow rapidly in 2024-2025. We believe that after the pandemic, the digital business boom of government and enterprises will gradually rise, with revenue growth rates of 3%, 50%, and 20% respectively in 2023-2025; data operation services, from pilot exploration to large-scale deployment, will provide 80%, 100%, and 90% revenue growth rates in 2023-2025; and digital economy infrastructure will drive data business upward on the demand side, giving revenue growth rates of 1%, 40%, and 30% respectively in 2023-2025. At the level of gross margin, we believe that the company's business model for 23-25 was relatively stable, and gross margin remained stable.
We expect the company's revenue for 2023-2025 to be 1,836/29.15/4.239 billion yuan, net profit to mother of 0.07/3.15/441 billion yuan, and corresponding EPS of 0.01/0.44/0.61 yuan respectively. Combined with the current industry stage and the company's growth rate and barriers, the company was given a 2024 dynamic of PE70-80 times, with a 6-month reasonable value range of 30.46-34.81 yuan. For the first time, coverage was given a “superior to the market” rating.
Risk warning. The company's business progress falls short of expectations, and industry policy risks.