Depth * Company * Taiji shares (002368): Business structure continues to optimize, operating cash flow doubles

On March 21, the company released its 2018 annual report: 60 revenue.

200 million, net profit attributable to mother 3.

2 billion, an increase of 13 each year.

5% and 8.

3%, plans to pay 2 shares for 10 shares.

3 yuan (including tax).

The company is the main force of government informatization. Revenue and gross profit margins of the two major businesses of cloud services, Internet security and self-controllable business have both increased, operating cash flow has improved significantly, and the buy rating is maintained.

Key points of support level The business structure has been optimized once again, and the fundamental marginal acceleration has improved.

The company’s main growth engine in the future will be cloud services, network security and new businesses represented by autonomous control.

Divided by business segment, cloud services / network security and autonomous controllable / smart applications and services / system integration services achieved revenue4.

7/12.

6/10.

9/31.

800 million, an annual increase of 27.

3% / 47.

3% / 11.

3% / 2.

4%, gross margin is 40.

5% / 27.

5% / 37.

5% / 11.

8%, change 6 respectively.

0/2.

5 / -7.

7 / -0.

7 points.

It can be seen that compared with the other two major businesses, the company’s cloud services, network security, autonomous controllable revenue growth rate and changes in gross profit margin have improved significantly, driving the overall gross profit margin to increase by zero.

2pct.

Net operating cash flow of the company 6.

800 million, an increase of 111.

9%, significantly improved cash flow and verified that the internal business structure has been significantly optimized.

Rich category + platform innovation, effectively expanding customer base.

The government affairs cloud business continued to make efforts in both category and platform innovation. The government affairs cloud service catalog increased by more than 30 items compared with 2017. Basic software and hardware resources, value-added security and other services are available. At the same time, it has successfully developed a distributed cloud supervision platform.

In Beijing, Hainan, Shanxi and other places, the number of users, business systems, and distribution of cloud hosts have achieved rapid growth.

Network security and autonomous and controllable services have blossomed.

(1) In the field of network security: New products are continuously released in big data platforms, network security status awareness and police equipment, and the market share is further increased; (2) Autonomous and controllable areas: Taichi Reliable Cloud Platform is released in March.The business of Jincang database has developed 杭州桑拿网 rapidly, and the contract value has increased by more than 100%, becoming a model for domestic databases.

The main risks faced by ratings are that the growth of cloud services is less than expected; the progress of convertible bond issuance is less than expected.

The growth forecast of traditional integrated business is expected to lead to a breakdown of the growth base, and the profit forecast is lowered. Is it expected that 2019?Net profit in 2021 is 4.
3/6.

2/8.

9 trillion, EPS is 1.

0/1.

5/2.

1 yuan (19?
20 down repair 16.

3% / 3.

9%), corresponding to PE is 32/22/15 times.

We are optimistic about the development of government affairs cloud, net security and independent controllable business, and maintain the BUY rating.