Taiji Shares (002368) Annual Report 2018 Review: Optimized Revenue Structure, Cyber Security and Independent Controllable Growth Expectable

Taiji Shares (002368) Annual Report 2018 Review: Optimized Revenue Structure, Cyber Security and Independent Controllable Growth Expectable

Core point of view The company takes “data-driven, cloud-led future, cyber security world” as its strategic guidance, and business optimization promotes sustainability.

We believe that under the industry trend of rising demand for information security and an upward trend in safe and reliable business, the company’s business will emerge from the upward trend of growth.

Given 2019-2020 EPS forecast to 0.

93/1.

30 / yuan (the original value is 1.

13/1.

47 yuan), and forecast its EPS in 2021 is 1.

86 yuan, corresponding to PE is 35/25/18 times.

Maintain the “overweight” rating.

  The company announced the 2018 annual report: the company realized operating income of 60.

1.6 billion, an increase of 13 in ten years.

52%; net profit attributable to mother is 3.

2 ‰, an increase of 8 in ten years.

29%; realized non-net profit attributable to mothers 2.

40,000 yuan, an increase of -2 in ten years.

68%.

  Optimized revenue structure and improved overall gross profit margin.

The company’s cloud service business, network security and autonomous controllable business, smart applications and services, and system integration business achieved revenue4.

67/12.

55/10.

85/31.

7.8 billion.

The company’s cloud service business, network security and autonomous controllable business continued to increase its revenue share, from 6 respectively.

92% and 16.

08% increased to 7.

77% and 20.

85%.

The proportion of traditional system integration services business revenue continued to decline, and the ratios for 2016-2018 were 73.

59% / 58.

60% / 52.

83%.

The company’s overall gross profit margin was 22 from 2017.

02% increased to 22.

twenty two%.

  The per capita budget has increased and cash flow has improved.

The company has significantly improved per capita efficiency, with a total number of 168 people falling and sales staff decreasing rapidly. Per capita income has increased significantly from 1.19 million yuan in 2017 to 1.4 million yuan.

Net cash flow from company operating activities 6.

800 million, an increase of 111 over 2017.85%, the cash flow of operating activities has improved significantly.

  The partial transition of network security and autonomous and controllable industry leaders has formed, and the future is expected to be affected by rising downstream demand.

1) The company has long been engaged in the field of public security big data.

The 70th anniversary of National Day has improved the degree of improvement in public security and social stability, and increased awareness of cyberspace security precautions. We believe that the company’s comprehensive system solutions such as providing cyber security governance, illegal information 深圳spa会所 monitoring and analysis, and command and decision support to the national public security department are incompatible.

2) In the field of safety and reliability, the company has absolute competitive strength.

First of all, the company has the first super integration qualification.

At the same time, the company respectively held and participated in the domestic database enterprise NPC Jincang, party and government application software provider Huidian Technology, and domestic middleware enterprise Kingdee middleware.

In addition, the company’s actual controller, China Electronics Technology, has a secure and reliable ecosystem from chips to complete machines, from basic systems to application systems.

  Risk factors: Safe and reliable business advances are less than expected; industry integration is less than 杭州桑拿网 expected.

  Investment suggestion: The company takes “data-driven, cloud-led future, and network security world” as its strategic guidance, and business optimization promotes sustainability.

We believe that under the industry trend of rising demand for information security and an upward trend in safe and reliable business, the company’s business will emerge from the upward trend of growth.

Given 2019-2020 EPS forecast to 0.

93/1.

30 / yuan (the original value is 1.

13/1.

47 yuan), and forecast its EPS in 2021 is 1.

86 yuan, corresponding to PE is 35/25/18 times.

Maintain the “overweight” rating.