26 Mar

Zhongke Shuguang (603019) Quarterly Review: Substantial Progress in Supply Chain Operations

Zhongke Shuguang (603019) Quarterly Review: Substantial Progress in Supply Chain Operations

Investment Highlights The company released three quarterly reports with steady growth in performance.

In the first three quarters of 2019, the company achieved operating income of 67.

810,000 yuan, an increase of 24 in ten years.

24%; realize net profit attributable to mother 2.

50 ppm, an increase of 43 in ten years.

57%; net profit deducted from non-attributed mothers1.

1.3 billion, an increase of 33 in ten years.


From the single quarter data, the company achieved operating income of 21 in 3Q19.

74 ppm, a five-year increase of 5.

93%; net profit attributable to mothers was 46.09 million yuan, a year-on-year increase of 67.


Compared with 19Q2, the growth rate of net profit attributable to mothers increased in 19Q3 (the net profit growth attributable to mothers in 19Q2 was 23.


  The supply chain has been operating steadily.

On June 24, 2019, the company was included in the US Export Control Regulations (EAR) entity list.

Subsequently, the company mitigated the impact on the company’s production and operation by sorting out the supply chain, finding alternative parts, and adjusting production plans.

The company weighed that, at present, substantial progress has been made in the operation of the supply chain, and a relatively complete response plan has been formed to keep the company’s supply chain running smoothly.

  Self-research capabilities have been continuously strengthened.

The company continued to increase R & D investment and strengthen self-research capabilities. 19Q1-3 the company invested R & D expenses4.

41 trillion, an increase of 54 in ten years.


R & D accounts for 6 of the revenue.

5%, compared to 5 in the same period last year.

0%, an increase of 1.

5 units.

In the first three quarters of 2019, the company expanded R & D investment in areas such as advanced computing, storage, big data, and cloud computing that can be localized, including edge computing servers, storage software, localized component replacement and domestic servers.Type, increase the proportion of high value-added service revenue, and gradually integrate it into the application of a systematic information technology infrastructure to improve the product ecology.

  Silicon Cube is the world’s leading scientific and technological achievement of world-class Internet, and its technical strength is continuously verified.

On October 20, 2019, at the Sixth World Internet Conference, the company’s silicon cube immersion liquid-cooled computer was selected as the 15 leading Internet technology achievements in the world.

The silicon cube immersed liquid-cooled computer combines the latest research results in computer architecture, efficient cooling, high-speed networking, and mass storage, breaking through traditional cooling methods, and achieving world-leading deployment density that can effectively support AI and big data.Cloud computing and other applications.

At present, silicon cube has been applied in many provinces and cities such as Beijing, Nanjing, Shanxi, Gansu and so on.

The company’s technical strength has been continuously verified by the market and endorsed by the industry.

  Earnings forecasts and investment advice.

At present, the company’s various businesses are operating normally and its operations are stable.

We believe that the “Entity List” incident 南宁桑拿 has a certain impact on the company’s performance in the short term, but in the long term, the company’s products and core R & D capabilities are not affected.

We estimate that the company’s net profit attributable to its parent in 2019-2021 will be 5 respectively.

29 ppm / 7.

53/10/10.140,000 yuan, EPS is 0.

59 yuan / 0.

84 yuan / 1.

13 yuan, currently expected corresponding PE is 58 times, 41 times, 30 times.

Maintain “Buy” rating.

  risk warning.

Demand from downstream customers was lower than expected risk, and business development of subsidiaries was lower than expected risk.