Overview of events:
The company announced that the revenue in 2019 was 1.158 billion yuan, an increase of 17.64% over the same period last year; the net profit was 77.7358 million yuan, an increase of 1.45% over the same period last year; due to the impact of the epidemic in the first quarter of 2020, the company and its upstream and downstream enterprises resumed work and the delivery of products was delayed accordingly, resulting in a loss in the company's performance in the first quarter. The net profit loss of the parent is 24 million yuan-30 million yuan.
Analysis and judgment: the epidemic affects short-term performance under pressure, and continues to be optimistic about annual growth.
The 5G base station power supply "both in quantity and price", the company's non-low price first share won the bid operator collection, the communication power supply technology competitive advantage is remarkable: 5G high power, the single base station power supply value increases, at the same time, the 5G station site density is higher than 4G, the market volume and price of the communication power supply industry is rising. We judge that the company's 5G power stack solution includes base stations, remote power supply and micro power products, and is expected to continue to win the bid with a high share of operators.
HVDC leader, Internet manufacturers and industry customer orders continue to grow: as the HVDC leader, in addition to being used in the new large data center, the company's HVDC products gradually replace the UPS systems of the three major operators, BAT and other data centers. Since 2019, the customers of HVDC products have also expanded to government and enterprise, financial and security systems.
DiDi Global Inc. hand in hand with the national network Evergrande cooperation, promoted to the domestic charging pile first echelon supplier: DC charging pile hand in hand DiDi Global Inc. 's small orange charging, become the largest charging equipment partner. Ac charging piles hold hands with Evergrande and become its only supplier of orderly charging equipment in the next five years.
Zhongheng Borey focuses on power informationization, fully benefiting from ubiquitous power Internet of things and distribution power reform: Zhongheng Borey precision farming power field, the business covers intelligent control of dispatching, lean management of production, energy planning and line loss energy efficiency management, integrated energy services, etc., to help the construction of the national smart grid.
Investment suggestion
According to the company's future 5G, IDC, new energy charging piles and other areas of layout and orders, we expect the company to achieve revenue of 1.726 billion yuan, 2.209 billion yuan, corresponding to the net profit of 143 million yuan, 187 million yuan, respectively, the corresponding current price PE is 51x/39.1x, in view of the company's current performance at the bottom of the reversal period, the future performance of strong certainty, to maintain the "holding" rating.
Risk hint
The continuous spread of the global epidemic has led to a poor supply of key devices upstream; the application of HVDC in the data center field is not as expected; and 5G construction and bidding are not as expected.