Main points of investment
Leader in communications and IDC power supply, integrated energy solution service provider. Since its inception, the company has focused on the field of power electronics and power information, and is the leader of domestic communication base station power supply, data center power supply system and new energy vehicle charging pile; its subsidiary Zhongheng Burui has been involved in the construction of national network SG186-PMS system and the research and development of line loss platform for many years, leading in the field of relay protection setting. Based on the advantages of power electronics and power information, the company continues to cross-border penetration, software and hardware integration, collaborative innovation, to create integrated communications and power grid energy solution service providers.
The power supply advantage of 5G base station has been verified, and the performance of 2020 is supported by full orders. The "new infrastructure" has accelerated the construction of 5G base stations, and the number of new 5G base stations in China is expected to reach 700000 in 2020, bringing a broad demand for supporting power systems. The company creates diversified 5G network full-link power supply solutions to solve the 4G base station expansion and transformation, 5G new base stations supporting power requirements, in recent years in the three major operators base station power share to maintain the first echelon. In March 2020, the company won 40% of the bid for "China Mobile Limited combined switching Power supply from 2020 to 2021", ranking first, highlighting its dominant position in the field of 5G base station power supply. The company's new orders for communication power products in the first quarter exceeded those for the whole of 19 years. Full orders will support a high performance increase in 2020.
When the demand for IDC power supply breaks out, the HVDC leader will set sail. Epidemic factors accelerate the pace of data center construction, and the demand for IDC power supply system will break out in 2020. The company is the leader of HVDC in China, with more than half of the new orders for IDC power supply system in the first quarter; in November 2019, with BABA to develop an integrated, efficient and reliable Panamanian power supply system, which has significant advantages in investment cost and installation space, it is expected to further enhance its share in the field of large-scale IDC power supply by virtue of Panama system in the future.
The outstanding private enterprises of electric power information will fully support the construction of the Internet of things in electric power. Zhongheng Burui, a subsidiary of Zhongheng Burui, has been deeply engaged in the field of electric power informatization for 20 years, has participated in the construction of the national network SG186 project, has a leading share in the field of relay protection setting, and is one of the leading private enterprises in electric power informatization. The company actively promotes the layout of energy Internet business and successfully supports the construction of Zhejiang Pan-ubiquitous Wushu demonstration Base and National Comprehensive Energy Service demonstration Base in 2019. In 2020, the construction of the Internet of things of electric power will continue to advance, the goal of the energy Internet of the national network is clear, the business scale of comprehensive energy services will double, the amount of information investment is expected to continue to rise to the next level, and Zhongheng Bouri and Zhongheng Cloud Energy are expected to give full play to their industrial synergy advantages. we will fully support the transformation and upgrading of the power grid and the construction of the Internet of things.
Heavy cooperation landed, cut into the field of two rounds of power exchange to usher in a new increase in performance. The company has won the priority purchase right for the new generation of intelligent switchgear, successfully cut into the field of two rounds of power exchange, and further deepened the business layout in the new energy industry. The power exchange service can solve the high-frequency and long-term power demand of B-end users, such as shared rickshaws and real-time distribution personnel, superimposed by C-terminal continuous penetration and broad demand space. Considering the development prospect of Hello Travel in the field of shared scooters and the potential space of the switchboard industry, the performance flexibility brought by the company's new business is expected to continue to exceed expectations in the next few years.
The business model of charging pile is diversified, and it has become the only winning bidder for the third generation of Evergrande pile. The company has actively expanded the domestic and foreign charging pile market, has established cooperation with DiDi Global Inc., BP and PSTEC, and vigorously promoted the layout of the whole industry chain of "car + pile + aftermarket". In October 2019, the company became the only equipment supplier for the third generation AC charging pile bidding project of Evergrande, and the supply is expected to reach 300000 units in the next five years, contributing sufficient driving force for the company's future operation.
Investment suggestion: the company is the leader of 5G base station power supply and IDC power supply system, fully benefiting from the outbreak of demand for 5G base stations, IDC, charging piles and other links in the "new infrastructure". The company's performance fluctuated briefly due to the delay in the delivery pace in the first quarter, and the newly signed orders are much higher than expected to support the high growth for the whole year, and the second quarter is expected to enter the stage of high performance growth. Cooperation with Ningde Zhihuan to help the company cut into the field of power exchange of two-wheeled electric vehicles will bring new increments in performance. We expect the company's net return profit from 2019 to 2021 to be 287 million yuan and 0.34 trillion yuan respectively for 2019-2021, respectively, corresponding to the closing price PE of 107.4 pound 43.3 pounds on April 14, 2020, respectively.
Risk hints: 5G base station construction is not as expected, IDC construction is not as expected, grid investment is not as expected, demand scale is not as good as expected risk, etc.