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Taiji Shares (002368) Semi-annual Report Commentary Report: Rapid Growth of Cyber Security Business, Government Cloud Accelerates Development

Taiji Shares (002368) Semi-annual Report Commentary Report: Rapid Growth of Cyber Security Business, Government Cloud Accelerates Development

Event description The company 夜来香体验网 released its semi-annual report for 2019. In the first half of the year, the company achieved operating income of 301,277 million, a long-term growth of 11.

75%; net profit attributable to shareholders of listed companies was 21.48 million yuan, an increase of 7 years.

06%, achieving steady growth.

  Incident review performance achieved solid growth.

In the first half of 2019, the company strengthened its market development efforts, and the scale of newly signed contracts increased significantly, with signing expenses exceeding 5 billion and operating income of 30.

13 ppm, an increase of 11 in ten years.

75%.

The net profit attributable to shareholders of the listed company is zero.

21 ppm, a ten-year increase of 7.

06%, achieving steady growth.

Realize deduction of non-net profit of 0.

1.5 billion, down 21 a year.

87%.

  Of the current non-recurring gains and losses, government subsidies closely related to corporate business were 763.

400,000 yuan, compared with the same period last year (3.

60,000 yuan) to achieve substantial growth.

  In terms of business, network security business achieved rapid growth, and government cloud business accelerated development.

In the first half of the year, the network security sector achieved revenue6.

79 trillion, an increase of 46 in ten years.

71%.

In the context of the trade war, the company, as an independent and controllable overall unit of China Electronics Technology Corporation, actively provided independent products to government departments and industry enterprises, and combed its industry leading position.

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.

Implementation of the company’s cloud service business 2.

11 trillion, accounting for 7 of the total revenue.

02%.

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, which will help Tianjin to build the government cloud operation and service system for Tianjin.City government departments provide government affairs cloud services.

At the same time, the company continued to cultivate key industries, undertook the construction of national and industrial platforms and major platforms, and the Chinese government service platform was officially launched for trial operation.

  The gross profit margin has increased overall, and the rate during the period has increased with performance growth.

The company’s overall gross profit margin reached 23 in the first half of the year.

49%, an increase of 4 over the same period last year.

With 67 units, the company’s business quality has improved significantly.

Regarding the period rate, the company’s sales expenses accounted for 3 of the operating income in the first half of the year.

05%, compared with the same period last year (1.

54%) increased by 1.

51 singles, mainly due to market expansion and sales staff increase; management expenses accounted for 18 of operating income.

34% compared to the same period last year (14.

96%) listed 3.

38 units; the proportion of financial expenses to operating income is zero.60% compared to the same period last year (0.

63%) down 0.

03 averages.

The overall period fee is priced at 21.

99% compared to the same period last year (17.

13%) increased by 4.

86 units.

R & D expenditures increased significantly by 271.

63%, innovation drives the company’s business transformation and upgrading.

  Investment suggestion: Reorganize the government affairs cloud business to accelerate the development, network security, and independent controllable business to develop rapidly. After establishing cooperation with Huawei, we will realize complementary advantages and build a compatible industrial ecosystem.

95\1.11\1.39, corresponding to the company’s closing price of 29 on August 20.

36 元,2019-2021 年PE 分别为30\26\21,维持“买入”  评级。  Risks exist: network security, less-than-expected development of autonomous and controllable services, less-than-expected technological breakthroughs, and less-than-expected policy environment.