Taiji shares (002368): accelerated development of Internet security and independent controllable business is expected to accelerate growth in the second half of the year

Taiji shares (002368): accelerated development of Internet security and independent controllable business is expected to accelerate growth in the second half of the year

Event: Interim report revenue 30 in 2019.

13 ppm, an increase of 11 in ten years.

75%, net profit attributable to mother is 2147.

830,000, an annual increase of 7.

06%, deducting non-net profit of 1540.

380,000 yuan, a decrease of 21 a year.

87%.

Investment points The gross profit margin brought by the optimization of the business structure has continued to grow for four consecutive years. The growth and growth of the single quarter in the new quarter: the company’s single quarter revenue and return to the parent net profit increased by 14 respectively.

34%, 11.

06%, all accelerated.

In terms of products, network security and self-controllability, cloud services, and smart applications and services increased by 46.

19%, 10.

12%, 43.

47%, system integration business is reduced by 7 per year.

13%.

In view of different industries, government affairs and public institutions increased by 59.

35%, 1.

67%, the number of enterprises is reduced by 19.

twenty one%.

In terms of gross profit margin, the overall gross profit margin reached 23.

49%, an increase of 4 a year.

67pct, business structure continues to be optimized.

In terms of products, network and information security, system integration services, cloud services, and smart application gross margins increased by 0.

30 tablets, 2.

Eleven, four.

65pct, 5.

60 points.

In terms of expenses, the sales expense ratio and the management expense ratio were increased by 1.

51pct, 1.

59 points; R & D costs have increased significantly over the long term 271.

6%, driving the company’s business to continue to upgrade.

In the end, the scale of new contracts will increase, and the number of contracts will increase by more than 5 billion.

The construction of major national and industry-level platforms is expected to enter the peak of settlement in the second half of the year.

Smart applications and services business grows 43 each year.

47%.

The final reason was that the national “Internet + supervision” government service platform of the company’s air force was officially launched for trial operation on May 31; gradually, the company further deepened in key government affairs industries, undertaking the tasks includingMinistry, National Meteorological Administration, Xinjiang Radio and Television, Shanxi Province, Hainan Province and other important departments for the construction of major projects and platforms.

The second half 都市夜网 of the year is expected to enter the peak of settlement of large projects.

The network security business is growing rapidly, and autonomous controllable volume is imminent.The company’s cyber security and autonomous controllable business grows 46 per year.

19%, achieving rapid growth.

In the first half of the year, the subsidiary NPC Jincang’s revenue increased by more than 50%.

Facing business pain points, NPC Jincang is committed to creating a product application strategy of transactional application scenarios, analytical application scenarios and data connection to three-dimensional entities. Three new products were released in the first half of the year, with distributed, video image processing, and multiple data synchronization.And other technologies merge and innovate, starting a new journey in the field of database segmentation.

The company, as an independent and controllable overall unit of China Electronics Technology Corporation, further develops and perfects the industrial ecosystem; at the same time, it establishes a joint laboratory with Huawei to create an open and compatible industrial ecosystem to support the digital transformation of the ICT industry in all walks of life.

The government cloud business accelerated its development and business model transformation continued.

The company’s cloud services business grows by 10 per year.

12%.

Following Beijing, Hainan, Shanxi, Haikou, Yulin and other provinces and cities, in March 2019, the company successfully won the Tianjin Municipal Government Cloud, and the government cloud business is the next province.

At the same time, after three years of operation, the company’s Taiji government cloud has also matured. We believe that the company’s government cloud business has already implemented a relatively complete operating model and can achieve rapid business development in the future.

Profit forecast and investment grade: The company’s net profit for 2019-2021 is expected to be 3 respectively.

8.2 billion, 5.

38 billion and 7.

5.5 billion, EPS is 0.

92/1.

30/1.

82 yuan, the current price corresponds to 32/23/16 times PE. This year, the company achieved high-speed growth in Internet + supervision and independent controllable business, and further cooperation with Huawei to achieve complementary and coordinated development.

The company is about to usher in an inflection point of transformation, and its profit is expected to accelerate its release, maintaining its “Buy” rating.

Risk Warning: Government Cloud Market Progress Exceeds Expectation; Safe and Reliable Market Is Lower than Expected