Taiji shares (002368): the company’s performance flexibility is underestimated and the debt protection is better
Event: The company recently issued a prospectus for convertible corporate bonds. The issuance of convertible corporate bonds was 100 million yuan, the number of issuances was 10 million, and the term was 6 years from the date of issue.
Steady growth in performance and improvement in gross profit margin due to business structure optimization: The company is a leading company in domestic e-government, smart city and key industry informatization. By transforming and transforming business transformation, the company has gradually formed a new business structure, mainly including cloud services, Network security and autonomous controllable, intelligent applications and services and system integration services.
In the first half of 2019, the company realized revenue of 30.
13 ppm, an increase of 11 in ten years.
75%; net profit attributable to mothers was 21.48 million yuan, a year-on-year increase of 7.
At the same time, thanks to the continuous optimization of business structure, gross profit margin increased by 4 over the same period last year.
In the first half of the year, the new contract value exceeded US $ 5 billion, and the high-security sector grew rapidly. In the first half of the year, the company strengthened its market development efforts, and the number of newly signed contracts increased. The contract value exceeded US $ 5 billion.
In terms of sub-businesses, the “Great Security” segment achieved total revenue6 in the first half of the year.
79 trillion, an increase of 46 in ten years.
The subsidiary NPC Jincang’s business developed rapidly in the first half of the year, and its operating income increased by more than 50% compared with the same period last year.
In the first half of the year, three new products of Jincang HTAP distributed database KSOne, Jincang distributed video database system KVDB, and Jincang parallel data synchronization software KFS were launched. They are based on the integration of distributed, video image processing, and multiple data synchronization technologies.New journey in database segmentation.
It is estimated to be low and the performance elasticity is underestimated: the company currently expects to be 28.
50 yuan, corresponding to a PE TTM of 37X, at 5 is 无锡桑拿网 more than the expected bottom.
The company estimates that it far exceeds Neusoft Group (608.
63X), China Software (271.
93X), Dongfangtong (60.
Considering that the company is backed by China Electronics Technology Corporation, its products and integration capabilities in the independently controllable market are in an internal leading position.
With the country’s continued efforts to promote localization, the company’s future performance growth is expected to accelerate.
Concentrated shareholding structure, low pledge risk and no pressure to lift the ban: The company’s shareholding structure is scattered and concentrated, and the major shareholder is the 15th Research Institute of China Electronics Technology Group, with a share of 38.
86%, the remaining shareholders hold less than 5%.
At present, the company’s total equity pledge is zero.
20,000 shares, low pledge risk.
The company’s last lifting of the ban was the circulation of restricted shares in September 2017. There is currently no pressure to lift the ban, and there will be no new lifting of the ban in the near future.
The redemption price is 112 yuan, and the debt protection is better: the coupon rate of the company’s convertible bonds is 0.
8% and 2.
0%, expired refund rebate is 112 yuan (including the last year’s annual interest), the period is 6 years, and the face value corresponding to YTM is 2.
75%; the debt rating is AA, and the 6-year maturity yield is 4 with the CSI rating of CSI.
97% is used as the discount rate interest rate and the debt floor value is 88.
17 yuan, debt protection is better.
The initial conversion price of the convertible bonds issued this time is 31.
61 元/股，下修条款为[15/30，90%]，有条件赎回条款 [15/30，130%]，有条件回售条款[30，70%，面值+当期应计利息]. Investment suggestion: It is expected that EPS for 2019-2020 will be 0.
92 yuan, 1.
14 yuan, corresponding to 31 and 25 times the corresponding PE, maintain “Buy-A” rating, 6-month target price of 37 yuan.
Risk reminder: the influx of industry giants intensifies market competition.