Inspur Information (000977): The company’s performance continues to improve in the industry.
I. Event Overview The company announced the 2019 annual performance forecast on January 16, 2020, realizing net profit attributable to mothers8.
USD 8.8 billion, an annual increase of 30% -50%, to achieve net profit after deducting non-return7.
610,000 yuan, an increase of 18 in ten years.
Second, the performance of analysis and judgment continued to improve, and downstream demand is picking up. For the 20 years, high-boom companies in the server industry have increased their net profit by 30% -50% and net profit after deduction has increased by 19% -40%. The performance is in line with our previous judgment.
As the server industry leader, in the first half of 2019, the company faced the downward pressure on the global server market demand and the industry opportunities brought by the development of cloud computing and artificial intelligence technology. It actively focused on the smart computing business and adopted the JDM agile innovation model, refreshing the industry for 8 hoursThe new record speed of delivering 10,000 cloud servers also failed to achieve an alternative basis for the company’s performance growth.
With the second half of 19 years, downstream cloud companies’ cloud computing business continued to boom, which led to the expansion of CAPEX.
In the face of 20 years of 5G commercial use, that is, the increase in the number of IDC construction, V2X pulling the edge computing server demand and other factors, the 20-year server industry boom is expected to come, the company will directly benefit from the industry boom upward dividend.
The application for the rights issue has been approved. After the funds are available, the company’s capital structure will be further optimized.
The application for a rights issue has been approved. The raised funds will help optimize the company’s capital structure and ease the pressure on funding.
The company announced on January 16 that the application for rights issue has been approved by the CSRC, and the progress of the follow-up rights issue is in place.
The company plans to allocate US $ 2 billion in share placement funds, of which 600 million will be used to repay existing loans, reduce capital debt ratio and financial expenses, and optimize capital structure.
The remaining raised funds are used to supplement the cash flow, which can ease the company’s cash flow pressure for stocking in advance.
In addition, from the company’s historical perspective, the rights issue can help the company expand its business, expand the industry’s high economic dividend, and drive its own performance growth.
Third, investment advice three, maintain the “recommended” level.
We forecast the company’s net profit attributable to its mother at 19-21E to be 8.
2.5 billion, a growth rate of 33%, 60%, 37%, corresponding to the current price of PE is 47X / 30X / 22X.
At this point in time, we should consider the 2020 estimate. Compared to the 2020 PE of the wind power computer hardware industry, it is 40X, and the company as the leader, its PE in 2020 is lower than the industry average, so we maintain a “recommended” rating.
IV. IV. Risk Warning: Downstream Internet vendors ‘CAPEX expansion has fallen short of expectations, industry competition has intensified, and accounting periods have improved less than 武汉夜生活网 expected.