Taiji shares (002368) 2018 annual report comments: cloud services, strong growth in net security business, cash flow improved significantly
Investment Highlights Event: The company released its 2018 annual report and achieved an operating income of 60.
1.6 billion, an increase of 13 in ten years.
52%; net profit attributable to mothers3.
16 ppm, a ten-year increase of 8.
29%; net cash flow from company operating activities6.
80 ppm, an increase of 111 over the previous year.
Strategic transformation facilitated performance growth, and the main structure was further optimized.
The report is significant, the company’s strategic business performance is strong, and the proportion of revenue continues to increase: the growth rate of 成都桑拿网 network security and autonomous and controllable business has accelerated to achieve revenue12.
5.5 billion, with revenue share from 16.
08% increased to 20.
85%; cloud services business grows rapidly, realizing revenue4.
670,000 yuan, income ratio from 6.
92% increased to 7.
77%; smart applications and services business maintained steady growth and achieved revenue10.
85 ppm, the proportion of revenue was basically the same as last year; the company’s traditional system integration services business achieved revenue 31.
780,000 yuan, the proportion of income from 58.
60% reduced to 52.
The cloud service system has been continuously improved, and its strategic traction role has been continuously enhanced.
In terms of cloud service product systems, Taiji Cloud’s customer-oriented government service cloud “service catalog” has increased by more than 30 items before 2017. In terms of cloud operation service systems, the company has developed a Taiji exception cloud supervision system suitable for government affairs cloud platform operation management.
According to the number of reports, the number of government cloud users has increased, and Beijing, Hainan Province, and Shanxi Province have increased their number of commissions and offices to 69, 43, and 45, respectively.
At the same time, in March 2019, the company successfully won the Tianjin Municipal Government Cloud, which is expected to expand to more provinces and cities in the future.
The industry leadership level of network security and autonomous and controllable industries has gradually formed.
In the field of network security, the company’s newly-developed Hawkeye intelligent iris acquisition and comparison equipment, bullfrog anti-drone jammer, blue whale human acquisition integrated machine, Feibao mobile command combat platform and other series of equipment have further increased market share.
In the field of self-controllability, in March 2018, the company released the Taichi secure and reliable cloud platform, and released supporting test tool sets, secure and reliable application support platforms, and software services on the cloud.
Profit forecast and investment suggestions: We expect the company’s EPS for 2019-2021 to be 0.
97 yuan, 1.
21 yuan and 1.
45 yuan, the adjustment level is “prudent increase (downgrade)”.
Risk reminders: 1) intensified competition in the enterprise service industry; 2) the government cloud 成都桑拿网 development is worse than expected; 3) business transformation risks.