High light software (002063): State Grid e-commerce enters the market, opens new pattern of downstream IT, opens new growth

High light software (002063): State Grid e-commerce enters the market, opens new pattern of downstream IT, opens new growth
State Grid E-commerce entered the board and became the largest shareholder. The company’s development entered a new stage. On July 29, 2019, the company announced that it confirmed that State Grid Fujian and State Grid Jilin were freely transferred to the State Grid E-commerce company. The transfer of shares has been completed., State Grid e-commerce has become the company’s largest 武汉夜生活网 shareholder with a shareholding ratio of 10.63%.The company turned into a pilot enterprise of mixed reform of State Grid with prominent strategic scale.State Grid e-commerce and the company signed a strategic cooperation agreement, and will cooperate in four areas: 1, products and implementation services, 2, external business development, 3, new technology research and development, and 4, capital operation.State Grid e-commerce is a big data operator of State Grid. It grasps important data entries and has significant synergy with the company. Driven by the four major IT needs of the power industry, the company’s business is expected to start a new round of growth. The company ‘s business benefits from the growth of the four major IT needs in the medium and long-term prospects:The transaction model is expected to give birth to IT system construction space, and new distribution companies will increase the number of potential customers.2. Due to the domestic substitution in the context of trade friction, the company has the ability to achieve a comprehensive substitution.3. The new round of refined management construction expansion of State Grid, multi-dimensional refined management gradually promoted the continuous gains of the company’s management business.4. The ubiquitous electric power Internet of Things construction was fully launched. The company cooperated with the State Grid e-commerce company to penetrate from the application layer, the platform layer to the network layer, and the perception layer. The Group’s resource management system expands the company’s core competitiveness to customers outside the power grid. The company’s core competitiveness comes from 30 years of experience in serving power grid customers. It has the ability to serve the largest central enterprises in the country.Large, group customers.The company and the State Grid e-commerce company joined the Central Enterprise E-commerce Alliance to strengthen publicity efforts to external customers of the power grid. The group’s management business helps to benefit from the rapid growth of joint procurement by central enterprises. Investment suggestion We are optimistic about the company’s synergy effect after the entry of the State Grid e-commerce company. The company’s business is expected to benefit from the increase in downstream IT demand such as the ubiquitous electric power Internet of Things construction.It is estimated that the company’s net profit attributable to the parent in 2019-2021 will be 2.31, 2.94, 3.57 trillion, corresponding to EPS are 0.27, 0.35 and 0.42 yuan, the first coverage, given a “strong recommendation” rating. Risk reminder: The ubiquitous power IoT construction progress is less than expected, and the synergy effect with the State Grid e-commerce is less than expected