Taiji shares (002368) in-depth report: large-scale smart government builders in transition

Taiji shares (002368) in-depth report: large-scale smart government builders in transition

The company is a conventional large-scale integrated IT service provider and is undergoing a shareholding restructuring. We expect this major adjustment to inject new vitality into the company.

As one of the important players in the Xinchuang industry, the company will expand its scale of business in 2020, and its performance is expected to enter an accelerated track.

We outstandingly raised the company’s performance forecast for 2020-2021, corresponding to a target price of 69 yuan, and maintain a “buy” rating.

Large integrated IT service provider in transition.

Founded in 1987, the company is a veteran software service provider in China and a leader in domestic e-government, smart cities and key industry informatization.

The company’s actual controller, China Electric Power Technology Corporation (CETC), is the only large-scale scientific and technological military industrial group covering the entire field of electronic information, and has continuously transformed its corporate system.

At present, the company’s shares are planned to be transferred to the CLP Taichi Group. After the transfer, the actual controller of the company will remain unchanged, and the controlling shareholder will be changed from public institution holding to enterprise holding.

We expect that after the company has completed the equity adjustments and personnel adjustments in stages, the business is expected to enter an accelerated upward trajectory.

Xinchuang’s business is expected to become the main engine of growth.

The company and its affiliated groups, as the pioneers of the group’s Xinchuang industry, are accelerating the creation of the Xinchuang industrial ecology. At present, they have formed an industrial system including databases, middleware, office systems, industry application software, etc., and strengthened the BIOS and operating system with China Electronics TechnologyAnd other product collaborations, and carry out industrial cooperation with upstream and downstream partners.

The company mainly provides integrated services and software products in the field of letter creation. We expect the letter creation business to start large-scale construction in 2020, and it is expected to bring incremental 深圳桑拿网 revenue to the company in the next five years to exceed $ 20 billion.

Among them, we expect that integrated services revenue will reach 12 in 2020-2023.

6/30.

5/36.

8/21 ppm; In terms of software products, Huidian Technology’s OA application is mainly used to realize functions and achieve high-speed growth.

We expect that the Sunac business is expected to rebuild a Taichi stake in the next three years, the main builder of digital government.

The company has long served the construction of government affairs informatization in China. In the construction of a new generation of government affairs cloud platform, the company’s business model is shifting from the traditional one-time construction to the provision of long-term operating services, and the gross profit margin has continued to increase.

Based on the idea 上海夜网论坛 of “cloud leading the future”, the company has expanded the construction of government affairs clouds in Beijing, Tianjin and other places. At present, Beijing Taiji Government Affairs Cloud has carried more than 644 business systems of 69 commissions and offices.

At the same time, the company is exploring new long-term growth directions, including accumulation in energy companies, relying on China Electronic Technology (CETC) ‘s electronic component production capacity, the Industrial Internet may become the company’s next focus area, the company will issue convertible bonds in 2019Of which 4.
.

The 800 million funds raised will be used for the construction of the industrial Internet platform.

Risk factors: The progress of the CIC business industry is less than expected; the market competition and profit margin of CIC business are worse than expected due to intensified competition; the company’s stock transfer progress is less than expected.

Investment suggestion: We expect the company’s performance to increase rapidly through the expansion of its business.

We slightly lower the company’s 2019 revenue and net profit forecasts to 67.

1.7 billion and 3.

52 trillion (previous forecast was 70.

800 million and 3.

8.4 billion), raised the company’s revenue forecast for 2020-2021 to 89.

3/128.

8.4 billion (previous forecast was 88.

62/110.

700 million), raised net profit forecast to 6.

03/8.

88 ppm (was 5).

38/7.

7.1 billion).

We use the relative estimation method and take the e-government comparable company PE48X 2020 as the target PE, corresponding to a target price of 69 yuan, and maintain a “buy” rating.