A: Basic Information of the Company
Full Name: Sugon Information Industry Co., Ltd.
Stock Code: 603019
Stock Abbreviation: 中科曙光
Region: China
Industry: Computer, Communication and Other Electronic Equipment Manufacturing
Date of Establishment: March 7, 2006
Company Website: http://www.sugon.com
Registered Address: 1-3rd Floor, No. 15 Haitian Huake Street, Huayuan Industrial Park (Outside the Ring), Xiqing District, Tianjin
Total Shares Outstanding: 1,463,263,884 shares (as of June 30, 2024)
Business Operations: Research and development, manufacturing, sales, and services of high-end computers, storage, security, and data center products, as well as the development of digital infrastructure construction and intelligent computing.
Company Profile: As a leader in China's core information infrastructure field, Sugon Information Industry Co., Ltd. provides innovative, efficient, and reliable IT products, solutions, and services to users in China and globally. With over 20 years of development, the company has a deep technological accumulation and a leading market share in high-end computing, storage, security, and data centers. It has fully leveraged its high-end computing advantages to develop intelligent computing, cloud computing, and big data technologies, creating a computing industry ecosystem that supports scientific research, industry informatization, industrial transformation, and digital economic development. The company has established branches in all provinces, autonomous regions, and municipalities in China, with three leading intelligent manufacturing production bases and five R&D centers nationwide, and has deployed urban cloud computing centers in more than 50 cities across the country.
B: Value Investment Analysis
Key Financial Indicators:
For the first half of 2024, the company achieved a total operating income of 5.712 billion yuan, a year-on-year increase of 5.77%, and a net profit of 563 million yuan, a year-on-year increase of 3.38%, with earnings per share at 0.386 yuan and a return on equity of 2.97%. The gross margin was 26.25%.
Company Investment Value:
Sugon Information Industry Co., Ltd. has a strong presence in high-end computing, storage, security, and data centers, with a significant market share and technological advantages. The company's control person is the Institute of Computing Technology of the Chinese Academy of Sciences, making it an ideal platform for the industrial application of high-quality scientific research results from the Chinese Academy of Sciences. With the strong scientific and technological support from the Institute of Computing Technology, the company has excellent technical genes and is a key force in the construction of China's information and communication technology industry, securing its leading market position. The company's Technology Level in high-end computers and liquid cooling, its core business areas, maintains an industry-leading position. The proportion of self-developed products and the ability for core component research and development are continuously increasing, laying a solid foundation for the company's long-term sustainable development.
Company Growth Potential:
The company has been actively deploying in the field of liquid cooling technology since 2011 and has further extended its technological advantages to the storage field by launching the industry's first liquid-cooled storage product, ParaStor. The company's one-stop liquid cooling solution for storage and computing can optimize the data center's PUE to as low as 1.04 and can achieve natural cooling for the entire year. The company's liquid cooling technology has a significant industry-leading advantage, and its business layout in the field of liquid cooling infrastructure continues to be improved, which is expected to further expand its leading market share advantage in the future.
Industry Support Policies:
The Chinese government places great emphasis on the development of the digital economy, proposing policies to support the construction of digital infrastructure, the large-scale application of 5G, and the digital transformation of industries. These policies will provide a huge market opportunity for IT infrastructure vendors such as Sugon Information Industry Co., Ltd., promoting the continuous growth of the company's business.
International Policy Risks:
The complex changes in the global political and economic environment and adjustments in macroeconomic policies may have an adverse impact on the company's international business, such as market demand decline, raw material price increases, and exchange rate fluctuations. The company needs to closely monitor the dynamics of the international market and flexibly adjust its global market strategy to cope with potential international policy risks.
A.Top's Investment Review:
As a leader in China's core information infrastructure field, Sugon Information Industry Co., Ltd. has demonstrated strong investment value and growth potential with its technological accumulation and market share in high-end computing, storage, security, and data centers, as well as the scientific research support from the Institute of Computing Technology of the Chinese Academy of Sciences. With the acceleration of the "East Data West Computing" policy and the development of the digital economy, the company is expected to benefit fully in the fields of intelligent computing, cloud computing, and big data, bringing considerable returns to investors.