Quick review of major events of China Software (600536): the establishment of the Innovation Research Institute to tackle the ecological problems of the PK system
Event: The company announced on September 9 that it plans to participate in the investment and establishment of China Power (Hainan) Joint Innovation Research Institute Co., Ltd., with a registered capital of 500 million yuan, of which 95 million yuan will be invested by Chinasoft Systems and 19% will be held by the company.
Guoxin Computer’s view: The establishment of the company and the shareholder CLP Co., Ltd. jointly established the Hainan Joint Innovation Research Institute to accelerate the maturity and ecological improvement of the “Feiteng + Kirin” (PK) system, and once again highlight the company’s software asset integration platform architecture.
This investment is expected to focus on tackling key problems, realize transformation and upgrading, and fully support the large-scale development of independent innovation projects.
The PK architecture can now be used as an alternative to the Wintel system in the core areas of the country and some industries. In the future, the expansion of the bidding target and the opening of industrial application scenarios will expand the advantages and further expand the market.
In addition, the subsidiary ChinaSoft Systems is expected to benefit from innovative research and development, better serve the transformation and upgrading of traditional information systems in the core areas of the country and key industries of the national economy, realize the transformation of ChinaSoft systems into product innovation, and continue the high performance in the first half of 2019.growth trend.
The company has a complete basic software layout, leading in system integration and expansion, and perfect ecological integration.
Estimated net profit attributable to mothers in 19-21 years.
92/5.
40/8.
5.5 billion, corresponding to 0 EPS.
59/1.
09/1.
73 yuan, corresponding to the current sustainable PE of 156/84 / 53X, maintaining the “overweight” level.
Comment: As a part of the CEC software asset integration platform, the company established a research institute to accelerate the mature development and ecological improvement of the PK system. The company is a large high-tech listed company controlled by China Electronics and Information Industry Group Co., Ltd. (CEC) and a CEC network security and security company.The core enterprises of the information sector bear the responsibility and mission of the “National Team of the Software Industry”.
As a part of the CEC software asset integration platform, the company has created a complete product chain from operating systems, databases, middleware, security products to application systems; in the country’s taxation, party and government, transportation, intellectual property, finance, energy, health care, Security supervision, letters and visits, emergency response, industry and commerce, public utilities and other important areas of the national economy have accumulated tens of thousands of customer groups; meanwhile, following the development trend of the IT industry, focus on promoting new technologies such as cloud computing, Internet of things, mobile Internet, big dataApplications.
The joint establishment of the Hainan Joint Innovation Research Institute with the shareholder-China Power Co., Ltd. this time has accelerated the mature development and ecological improvement of the PK system, and once again highlighted the company’s software asset integration platform.
Among them, CLP Limited and China Electronics, the company’s controlling shareholder, signed the Share Transfer Agreement and the Supplementary Agreement to the Share Transfer Agreement on January 16, 2017 and March 26, 2018, respectively.Its holders of 223,190,246 shares of the company were transferred to CLP Limited for free.
Related procedures are currently underway.
If the implementation is completed, CLP Limited will become the company’s controlling shareholder, holding 45 shares.
38%.
CLP Co., Ltd. was established in December 2016 and is the core asset management platform of CEC Group. Its subsidiaries include Nanjing Panda, Rainbow Group, Huada Semiconductor, Zhenhua Group, etc.
China Software Equity Delivery is expected in the future.
As of the end of 2018, CLP’s total assets were 20,525,595.
200,000 yuan, with a total budget of 14,303,778.
200,000 yuan and net assets of 6,221,817.
100,000 yuan.
In 2018, it achieved operating income of 16,253,358.
One million yuan, net profit -36,869.
300,000 yuan.
The investment and establishment of the Hainan United Innovation Research Institute is based on research and experimental development. It is mainly focused on tackling key problems to promote the innovative development of the “Fei Teng + Kirin” (PK) system, thereby accelerating the maturity and ecological improvement of PK system products.Realize transformation and upgrading, and comprehensively support the large-scale development of independent innovation projects.
The investment conforms to the national cyber security strategy, the military information strategy and the group company strategy, adapts to the actual needs of internal large-scale upgrade development, and is conducive to obtaining local government policies and resource support. It is also conducive to optimizing internal coordination mechanisms, controlling operational risks, and improving the PK systemOverall competitiveness and sustainable development capabilities.
ChinaSoft Systems’ efforts to “system integration + product innovation” are expected to open a new chapter in development. The company will participate in the establishment of the Hainan Joint Innovation Research Institute to accelerate the improvement of product maturity and ecological perfection, and promote innovation and development. ChinaSoft can better serve the core of the country.The upgrading of traditional information systems in key industries and key industries of the national economy has enabled ChinaSoft to transform to product innovation.
It will have a positive impact on expanding the business scale, enhancing comprehensive strength, and improving the competitiveness of the company, which is conducive to the company’s expansion and long-term development.
ChinaSoft Systems is the company’s government, enterprise information construction system integration, software development, information security and related business entities. In the first half of 2019, it benefited from the rapid growth of high-tech business and independent security project revenue, and its operating income increased by 447.
04%, reaching 4.
16 megabytes, a year of increased bandwidth.
System integration + product innovation is expected to open a new chapter in development.
The rapid development of the PK system can realize the replacement of the Wintel system, and the market expansion gradually expands. At the end of 2017, China Electronics officially released the “PK system” at the World Internet Conference, which refers to the combination of the Galaxy Kirin operating system and the Feiteng processor.At present, the PK system of Feiteng + Kirin has realized the replacement of Windows + Intel’s Wintel system in some industry applications. The application efficiency is ahead of other security and controllable systems, and it occupies a considerable amount in the independent and controllable tenders in a few countries.Share.
The China Electronic Network Security and Information Technology Innovation Project won the first prize of the National Science and Technology Progress Award in 2018. The domestic complete machine based on the “PK” system made a perfect appearance at the International E-sports Competition. It can withstand the rigorous test of high requirements for software and hardware equipment.Demonstrated the excellent performance of the domestic machine.
Feiteng chip won the “China Core” 2018 Annual Major Innovation and Breakthrough Product Award, ranking domestic blank, and standing next to international counterparts.
The results of the projects that Kirin OS participated in won the 2019 National Science and Technology Progress Award.
In the future, the sinking of bidding objects and the opening of 厦门夜网 industrial application scenarios will expand the advantages of the PK architecture and further expand the market size.
Chinese software has a complete basic software layout, leading in ecological integration, and is the core workhorse of concentrated efforts. The company has a complete business chain from operating system, database and other basic software, middleware, security products to application systems, covering materials, party and government, Transportation, intellectual property, finance, energy and other important areas of the national economy, serving tens of thousands of customer groups.
The company’s partners include overseas giants, as well as domestic security and controllable core manufacturers.
The actual controller China Electronics and Information Industry Group Co., Ltd. (CEC) is the only company with an independent and controllable full industrial chain from chips, operating systems, middleware, databases, security products to application systems, forming security consulting, system integration,The information security service system for the entire life cycle of security operation and maintenance has the unique advantages of autonomous and controllable industrial chain linkage and ecological support.
Among them, the three core basic software vendors are also absolute domestic leaders, with product applications and ecological construction far ahead.
Winning bid software: Established in 2003, it is an earlier domestic operating system manufacturer.
In December 2010, the “winning bid Linux” operating system and the “Yinhe Unicorn” operating system developed by the National Defense University of Science and Technology were brand integrated, and the “winning bid Kirin” operating system brand was jointly launched.
At the beginning of 2016, Yilan Technology, a private capital, purchased 50% of the shares in the bidding software, thus making the bidding software a state with half of the state-owned and private capital.
According to CCID Consulting’s statistics, from 2011 to 2017, the winning bid of Kirin operating system has ranked first in the domestic Linux operating system market share for seven consecutive years.
Tianjin Kirin: Established in 2014, Tianjin Kirin is in a special competitive relationship with the winning software on the product system and technical route. In order to reflect the technical heritage of the National Defense University and to avoid potential legal risks, the company will resume the use of the “Galaxy Kirin” brand.
Tianjin Kirin is a state-controlled enterprise jointly established by China Electronics and Information Industry Group, National University of Defense Technology and Tianjin Binhai New Area.
The Galaxy Kirin Operating System, also known as the Kirin Operating System, originated from the National University of Defense Technology and is developing an operating system with the highest level of security in the country under the support of the “863 Program” and major nuclear high-tech major projects.
At the end of 2017, China Electronics formally released the “PK System” at the World Internet Conference, which refers to the combination of the Galaxy Kirin operating system and the Feiteng processor.
In addition to the desktop and server’s “Galaxy Kirin” operating system, the Tianjin Kirin Company’s “Kirin Cloud” provides users with a secure, resilient, highly available, high-performance public / private cloud solution.
In June 2016, Tianjin Kirin Academician Workstation, headed by Academician Ni Guangnan of the Chinese Academy of Engineering and Academician Liaoxiang of the National Defense University, was officially established.
Tianjin Kirin’s “Yinhe Kirin” has advantages in operating system security and reliability, fully supports international mainstream X86 CPUs, and also supports operating systems of Feiteng series ARM64 architecture servers.
Wuhan Dameng: Established in 2000, it is a big data platform company specializing in providing big data platform architecture consulting, data technology solution planning, product deployment and implementation for China Electronic Information Industry Group (CEC) affiliated basic software companies.
For more than 30 years, it has been adhering to original innovation, independent research and development, mastering core technologies and cutting-edge technologies in data management and data analysis, mastering all source code, and has completely independent intellectual property rights.
The company is a key internal software enterprise in the national planning and layout, an emerging enterprise that has obtained national “double software” certification, a database enterprise that has obtained national independent original product certification, and has an internal database research and development elite team. It has competed with international database giants and won the bid several times.
The development of Dameng Company has spanned seven “five-year plans”, and has completed nearly 60 national, provincial and ministerial level scientific research and development projects, and has achieved more than 50 research results, all of which are internationally advanced and domestically advanced.More than 30 approved national, provincial and ministerial science and technology progress awards, are the leading companies in the domestic database industry.
Dameng Company has established a stable and effective marketing channel and technical service network, which can provide users with customized products and localized original factory services to fully meet the user’s personalized requirements.
Dameng’s products have covered more than 30 industries, such as public security, electric power, railways, aviation, auditing, communications, finance, customs, land and resources, e-government, emergency rescue, etc.
Investment suggestion: The company and its shareholder CLP Co., Ltd. established the Hainan Joint Innovation Research Institute this time to accelerate the maturity and ecological improvement of the “Fei Teng + Kirin” (PK) system, and once again highlight the company’s software asset integration platform architecture.
This investment is expected to focus on tackling key problems, realize transformation and upgrading, and fully support the large-scale development of independent innovation projects.
The PK architecture can now be used as an alternative to the Wintel system in the core areas of the country and some industries. In the future, the expansion of the bidding target and the opening of industrial application scenarios will expand the advantages and further expand the market.
In addition, the subsidiary ChinaSoft Systems is expected to benefit from innovative research and development, better serve the transformation and upgrading of traditional information systems in the core areas of the country and key industries of the national economy, realize the transformation of ChinaSoft systems into product innovation, and continue the high performance in the first half of 2019.growth trend.
The company has a complete basic software layout, leading in system integration and expansion, and perfect ecological integration.
Estimated net profit attributable to mothers in 19-21 years.
92/5.
40/8.
5.5 billion, corresponding to 0 EPS.
59/1.
09/1.
73 yuan, corresponding to the current sustainable PE of 156/84 / 53X, maintaining the “overweight” level.
Risk Tips 1. Risks of party and government market purchases falling short of expectations; 2. Risks of safety and controllable industries developing less than expected.