Nanwei Software (603636): The core entrance of government big data
Rapid profit growth.
The company’s semi-annual 四川耍耍网 report for 2019 achieved revenue4.
64 ppm, a 68-year increase of 68.
29%, attributable to the profit of 2448.
240,000 yuan, a slight increase of 2 every year.
10%, net profit after deduction is returned to mother 1842.
640,000 yuan, an annual increase of 75.
Operating cash flow-2.
7.3 billion, previously improved.
In terms of business and product, the company achieved revenue in the first half of the year from Internet + government1.
850,000 yuan, an increase of 137 in ten years.
84%, gross margin 42.
Urban Public Safety (Safe City) Revenue 2.
660,000 yuan, an increase of 86 in ten years.
28%, gross margin 25.
Smart city business revenue is 0.
5.0 billion, gross profit margin 63.
IoT business revenue is 0.
04 trillion, gross margin 71.
In the first half of the year, the company’s management expenses were zero.
72 ppm, an increase of 54 in ten years.
12%, selling expenses 0.
350,000 yuan, an increase of 78 in ten years.
Looking at Q2 alone, revenue grew 61 in ten years.
34%, attributable profit increased by 34 in ten years.
08%, a 10-year increase of 38.
Pre-bid the smart Zoucheng (Phase 1) PPP project.
The company announced on August 16 that the company became the first pre-winning candidate for the Smart Zoucheng (Phase 1) PPP project.
The total investment of the project is estimated to be 17,731.
50,000 yuan, 3% of the project cost is down-sampled, 6% of the annual discount and reorganization during the operation period, and a reasonable profit rate of 8%; 10 years of operation period, the annual operation and maintenance fee is 8.4 million yuan.
This pre-bid is an affirmation of the company’s construction in the field of smart cities, which is beneficial to the company’s further accumulation of smart city business experience and the expansion of smart city comprehensive development business.
The company is a core backbone enterprise in the domestic “digital government” industry, and a leading enterprise in the “Internet + government” field. It has formed government services, e-licenses, government supervision, government terminals, government supervision, government affairs big data, and government affairs.7 major product systems and nearly 50 standardized products.
The product solutions of Internet + government services cover 30 provinces, more than 170 prefecture-level cities, and counties and grass-roots governments across the country, providing strong support and guarantee for the advancement of “decentralization and management service reform” work in various places.
The company ‘s innovative Zhejiang “runs at most once”, Jiangsu “does n’t meet and approve”, and Henan ‘s “one netcom office gradually runs the biggest one step by step”, Fujian ‘s “all netcom office” has become the industry benchmark.
Driven by the widespread application of “Internet + government services, Internet + supervision, e-licenses” and “big data”, the speed of local government informatization construction has accelerated, and local “digital government” construction plans have been promulgated, coupled with the government since 2018The institutional reform has been basically completed so far, and the integration of institutional departments has added a lot of demand for government informatization.
According to the Prospective Industry Research Institute’s statistics, from 2015 to 2018, the size of the domestic government industry gradually expanded by more than 15% each year.
The company predicts that the size of the national digital government market in 2019 will reach US $ 350 billion, and it is expected that in the next 5 years, it will maintain a steady growth rate of more than 13%, and the industry will continue to boom.
Fully integrate industrial resources.
In January 2019, the company obtained a strategic investment in Ant Financial, and Ant Financial became the company’s second largest shareholder.
The company and its holding subsidiary Fujian Nanwei Software Co., Ltd. signed a “Business Cooperation Agreement” with Ant Financial, Beijing Ant Cloud Financial Information Service Co., Ltd., integrated technology innovation research and development, and joint business development to help the company accelerate its development.
In February 2019, the company invested RMB 50 million in Sifang Weiye to realize the in-depth integration of big data technology and industry, expand new business and market space, promote vertical integration of the industrial chain and increase market competitiveness to increase the scale of the industry.
The issuance of convertible bonds was completed on July 19, 2019, and it was officially listed on August 5, 2019, raising funds6.
The raised funds will be used for the construction project of the intelligent “decentralized service” integrated platform, the construction project of the public safety management platform, and the construction project of the urban communication platform.
The implementation of fund-raising projects will greatly enhance the intelligence and intelligence of the company’s existing products and services, help to strengthen the company’s core competitiveness, and provide sufficient funding for the company’s scientific research strength and business development.
Earnings forecasts and investment advice.
We believe that the company is a leading enterprise of “Internet + Government” and a government big data portal.
Ali’s shareholding and the company jointly tap the value of government data.
We estimate the company’s net profit attributable to its parent to be 2 in 2019-2021.
3.4 billion, 3.
1.4 billion, 4.
11 trillion, combined with the company’s rapid growth in the future, will give dynamic PE 30-35 times in 2019, and a reasonable value range of 6 months is 13.
40 yuan, given “preliminary market” rating.
The advancement of Internet + government affairs fell short of expectations, and bad debts and cash flow of receivables deteriorated.