Jiangshui Power (600131): Plan to transform cloud-network integration platform to benefit from power reform, ubiquitous power IoT IT demand increases

It is planned to realize transformation through asset reorganization and create a power “cloud-network integration” information platform (1) Qijiang Hydropower is an established regional hydropower company based in Aba Prefecture.

(2) It is planned to realize transformation through asset replacement and reorganization, and create a “cloud-network integration” information platform for the power industry: a major asset reorganization announcement was issued on February 15: it is planned to release the main power distribution and related assets and liabilities related to the power generation business to listed companies,Invested in China Power Feihua 67, held by the Information Industry Group.

31% shares, 100% equity of Jiyuan Software,杭州桑拿养生会所 100% equity of CLP Puhua, and 75% equity of CLP Kaixing.

(1) CLP Feihua: Value-added telecommunications operation business and communication network construction business; (2) Jiyuan software: cloud network infrastructure construction, enterprise operation support services, enterprise operation visualization (3) CLP Puhua: digital enterprise,Smart energy, IT platform three core business systems, providing ERP consulting implementation, power marketing, cloud platform business services.

(4) CLP Kaixing: cloud platform components, enterprise portals, energy trading and other business product development and marketing power reforms, ubiquitous power IoT IT demand increases, driving the company’s business in the long-term growth (1) Energy Internet era,The energy revolution and the digital revolution are converging and developing. The company benefits from the interconnection of energy and the increased demand for information technology such as cloud-network integration brought by the ubiquitous electric power Internet of Things, which will drive the company’s business growth in the medium and long term.

(2) New Power was re-established in 2015. The electricity sales side was liberalized. The industry change brought about IT demand growth; the company is expected to benefit from the state grid’s huge resource system and the increased demand for information technology such as power distribution and trading.

The industry structure is clear, the company has customers, resources, technology, qualifications and other advantages. (1) Backed by the national grid system, customers, resources, technology, qualifications, funds and other advantages are obvious. (2) Power reform related information technology fields, with Henghua Technology.Keeping pace with each other, customer groups focus differently.

The customer system of Henghua’s power distribution and distribution is mainly in the park. Electricity distribution, ground power and pure power sales companies. The reorganized customers of Qijiang Hydropower focus on the power distribution companies related to the state grid system.

The two companies go hand in hand, not a zero-sum game.

For the first time, we will first consider its “strongly recommended” rating to take into account that the reorganization has not yet been completed, and the profit forecast will not consider the profit situation after the reorganization is completed.
In 2020, the EPS will be 0.

22.0.

25.0.

31 yuan.

From a medium-to-long-term perspective, considering the company’s industry level and competitive advantages to complete the reorganization, as well as the company’s development prospects driven by IT needs such as the power reform and flooding of things, the first coverage is bound to be a “strong recommendation” rating.

Risk warning: Asset restructuring fails, business progress is less than expected, and investment income changes significantly